Category: Enforcement

Flava Pulled From Philippine Shelves for Tax Evasion

Credit: Adobe Photo
Flava brand vaping products have been pulled from store shelves in the Philippines amid allegations of illegal marketing to minors and tax evasion, the Department of Trade and Industry has said.
The DTI’s Fair Trade Enforcement Bureau (FTEB) on March 15 ordered Flava Corporation, Lilac’s Vape Shop, and social media influencer Lilac Sison Tayaban, CEO of Flava, to refrain from manufacturing, importing, selling, packaging and distributing imported Flava vapes, according to media reports.
Once the Sampaloc, Manila-based business receives the preliminary order issued by DTI-FTEB, all of Flava’s commercial activities must immediately stop.
Flava was the respondent to formal charges alleging violations of Republic Act No. 11900, or the Vaporized Nicotine and Non-Nicotine Products Regulation Act, filed before the DTI-FTEB on March 14.
In turn, the DTI-FTEB gave the preliminary order to confiscate Flava products that violate RA 11900, to prevent the disposition or tampering of evidence and the continuation of the acts being complained of.
The DTI is the lead implementing and enforcement agency of RA 11900, the landmark law aimed at protecting minors from vaping. The House Ways and Means Committee earlier estimated as much as P728 million ($1.3 million) in foregone tax revenues from the alleged technical smuggling of P1.4 billion worth of illicit Flava devices last year.
After laboratory testing, The House panel discovered that Flava had not declared the vapes it imported from China. Flava allegedly mislabeled its ingredient as freebase nicotine, which has a lower excise tax than nicotine salt — the nicotine used in Flava products.
Also, the House committee discovered Flava’s aggressive marketing of its flavored vapes to minors, most especially on social media—a violation of RA 11900. Last week, Bureau of Internal Revenue commissioner Romeo Lumagui Jr. disclosed that the taxman seized 1,029 master boxes of Flava vapes from a warehouse in San Pablo City, Laguna, with tax deficiencies totaling P75.7 million.
The BIR raid conducted together with the Laguna provincial field unit of the Philippine National Police’s Criminal Investigation and Detection Group (PNP-CIDG) also led to the arrest of two individuals manning the warehouse.
As such, the BIR will file criminal tax evasion charges against Flava.
“This successful raid of a vape warehouse containing 102,900 bottles of Flava vape products will be one of many. The BIR supports the whole of the government’s approach to eradicating illicit vape products. We have warned you as early as 2022. Our raids are successful. We won the criminal cases. You already have pending warrants of arrest. Register and pay your proper taxes, or suffer the consequences,” Lumagui said.
Meanwhile, Consumer Protection Group spokesperson, Trade Assistant Secretary Amanda Nograles said they will check the report of the Philippine Drug Enforcement Agency that marijuana-laced electronic cigarettes or vapes are now proliferating in the market.
“That report alarms us, especially when these will be sold to minors. Since the information was just new, then we will get additional information. But the DTI will continue to confiscate vape products with flavor descriptors and have cartoon characters that are appealing to minors, and products that use influencers,” Nograles said in a radio interview.
She said if the DTI encountered or confiscated vapes with marijuana oil, then they would refer it to the PDEA.
On Thursday PDEA operatives seized cannabis oil and ‘kush’, and assorted vaping devices, with an estimated total value of P842,000 in simultaneous raids in Taguig City.
March 18, 2024
FDA Issues Civil Penalties to 21 Small Business Owners

Credit: Valiantsina
The U.S. Food and Drug Administration has issued complaints for civil money penalties (CMPs) against 21 brick-and-mortar retailers for selling unauthorized Esco Bars e-cigarettes.
In a press release, the agency stated that it had previously issued each retailer a warning letter for their sale of unauthorized tobacco products. However, follow-up inspections revealed that the retailers had failed to correct the violations.
The agency now seeks the maximum penalty of $20,678 from each retailer.
The complaints announced today represent the first set of CMPs FDA has filed for the sale of unauthorized Esco Bars e-cigarettes. “These retailers were duly warned of what could happen if they continued selling these unauthorized e-cigarettes,” said Brian King, director of the FDA’s Center for Tobacco Products (CTP). “They should have acted responsibly to correct the violations, but they chose not to do so and now must face the consequences of that decision. FDA won’t sit back and tolerate inaction to comply with the law.”
Currently, $20,678 is the maximum civil money penalty amount FDA can seek for a single violation from each retailer, consistent with similar CMPs sought against retailers for the sale of unauthorized Elf Bar products in Sept., Nov., and Dec. of 2023.
The retailers can pay the penalty, enter into a settlement agreement based on mitigation factors, request an extension of time to file an answer to the complaint, or file an answer and request a hearing. Retailers that do not take action within 30 days after receiving a complaint risk a default order imposing the full penalty amount, according to the release.
“Today’s CMP actions are just the latest in the continued, comprehensive push by FDA to take action across the supply chain to remove unauthorized e-cigarettes, particularly those that are popular among youth, from the marketplace,” the release states. “As of Jan. 30, 2024, FDA has issued more than 440 warning letters and 88 CMPs to retailers, including brick and mortar and online retailers, for selling unauthorized tobacco products.
“In addition to actions involving retailers, FDA has issued more than 660 warning letters to firms for illegally manufacturing and/or distributing unauthorized new tobacco products, including e-cigarettes.
“The agency has also filed civil money penalty complaints against 48 e-cigarette firms for manufacturing unauthorized products and sought injunctions in coordination with the U.S. Department of Justice against seven manufacturers of unauthorized e-cigarette products.”
January 30, 2024
Nevada Sheriff Wants Vapor Age Compliance Checks
After conducting its year-end alcohol compliance check last week, Carson City Sheriff Ken Furlong said his office is requesting that the Nevada Attorney General’s Office include vaping and other tobacco products that businesses shouldn’t be selling to minors in future stings.
The CCSO’s school resource officers, in conjunction with Partnership Carson City, held their final sting on Dec. 28 to ensure local businesses aren’t selling alcoholic beverage products to minors.
The compliance check was held with the support of three volunteers aged 16 to 18 who were sent to screen eight local businesses. Only one failed.
Furlong told the Nevada Appeal his request for expansion is to acquire greater resources to keep vaping and tobacco products from being easily accessible to teens in storefronts.
“I have instructed our team to proceed and coordinate with the AG’s office and determine if we can likewise add vaping and tobacco with the alcohol,” Furlong said. “(The businesses) would get a citation.”
Furlong said he hoped to hear soon from the Attorney General’s Office on the compliance checks, which are conducted every six to eight weeks.
January 10, 2024
Singapore Cracking Down on Illegal Vaping Imports

A soldier is on duty in Changi Airport (SIN) – Credit: Phuong
As part of a multi-agency effort to clamp down on vaping, Singapore authorities will step up checks at air, land and sea checkpoints in the coming months, starting with Changi Airport.
“Incoming passengers may be screened for e-vaporizers and their components at the arrival halls, and those found with e-vaporizers or their components will be fined,” said the Ministry of Health (MOH) and the Health Sciences Authority (HSA) in a media release.
Vaping is illegal in Singapore and offenders can be fined up to S$2,000 ($1,490). Those who import, distribute or sell such products face stiffer penalties, including a possible jail term.
Passengers carrying vaping devices must pass through the Red Channel (for people with goods to declare) to dispose of the prohibited items. “Travellers who declare and surrender these items at the Red Channel will avoid penalties,” said MOH and HSA, according to reports.
Additional Immigration and Checkpoints Authority (ICA) locations have been set up to flush out vaping violators, and security checks will also be conducted to detect and deter smuggling attempts.
Apart from the border checkpoints, checks will be stepped up at places such as the central business district, shopping centres, parks, smoking areas, as well as public entertainment outlets such as bars and clubs.
December 27, 2023
U.S. FDA, Customs Seize $18 Million in Illegal Vapes

Credit: Eduardo Barraza
The U.S. Food and Drug Administration and U.S. Customs and Border Protection (CBP) have announced that they have confiscated about 1.4 million unauthorized e-cigarette products, including controversial brands like Elf Bar.
The estimated value of these seized products is over $18 million. The impressive seizure occurred during a three-day joint operation, where 41 shipments containing banned e-cigarettes were found and taken into custody.
“The FDA is committed to continuing to stem the flow of illegal e-cigarettes into the United States,” said FDA Commissioner Robert Califf. “Unscrupulous companies try everything they can to bring unauthorized, youth-appealing tobacco products into the country. The FDA will remain vigilant, and together with our federal partners, stop these imports before they make it into the hands of our nation’s youth.”
The FDA and CBP conducted the joint operation at a cargo examination site at Los Angeles International Airport, where the team examined incoming shipments for potentially violative items.
In preparation for the three-day operation, the team worked for months to review shipping invoices, identify potentially illegal incoming shipments, and complete other investigative work that led to the operation’s success, according to an FDA release.
Once the merchandise is forfeited to the government, it will be disposed of in accordance with the law; in the case of unauthorized new tobacco products, that generally means they will be destroyed.
“This enforcement action is a prime example of CBP’s commitment to keeping our communities safe by disrupting the importation of illegal goods into our country,” said Troy A. Miller, senior official performing the duties of the commissioner for CBP. “The rise in illicit e-commerce demands that our agencies remain vigilant in intercepting shipments that could pose serious health risks to the public, including youth, while disrupting the supply chains that bring them to our borders.”
Upon examining shipments, all of which originated in China, the team found various brands of illegal flavored disposable e-cigarette products.
In addition to Elf Bar, among the seized e-cigarettes were EB Create products; earlier this year, the manufacturer of Elf Bar began marketing the product under the names “EB Design” and “EB Create.”
Other seized brands included Lost Mary, Funky Republic, RELX Pod and IPLAY Max, among others. In an attempt to evade duties and detection, many of these unauthorized e-cigarettes were intentionally mis-declared as various items such as toys or shoes and listed with incorrect values.
“Those shamelessly attempting to smuggle illegal e-cigarettes, particularly those that appeal to youth, into this country should take heed of today’s announcement,” said Brian King, director of the FDA’s Center for Tobacco Products (CTP). “Federal agencies are on to their antics and will not hesitate to take action. The significant value of these seized products is also a sobering reminder to these bad actors that their time and money would be better spent complying with the law.”
The FDA uses a comprehensive approach to tobacco product compliance and enforcement, taking action against those in the supply chain that violate the law, including manufacturers, importers, distributors and retailers, such as the targeted operations described in today’s announcement.
The FDA also regularly addresses the importation of illegal e-cigarettes by placing certain firms on an FDA import alert red list, which allows the FDA to detain products without conducting a full inspection at the time of entry, according to the release.
For example, in May, the FDA placed certain firms associated with unauthorized youth-appealing e-cigarettes on a red list, including firms associated with the Elf Bar brands.
December 14, 2023
Attorneys General Want FDA to do More to Protect Youth

State of Michigan Attorney General Dana Nessel
The attorneys general for 33 states sent a letter to request the U.S. Food and Drug Administration do more to protect young people from e-cigarettes.
Michigan Attorney General Dana Nessel announced she signed a bi-partisan letter calling on the FDA to limit the e-cigarette flavors that draw kids in and protect them from marketing, according to media reports.
She also suggested that the FDA should require a limit on nicotine levels in e-cigarette cartridges and disposables, according to a press release.
“Nicotine use by our young people has reached epidemic levels,” Nessel said in the release. “We need impactful tobacco regulations that protect our youth from the dangers of e-cigarettes and marketing tactics that target them with products flavored to taste like fruit and candy.
“We must act to regulate young people’s exposure to these products and take robust enforcement actions against manufacturers, distributors and retailers who ignore the law.”
The letter is becoming a yearly occurrence. Last year, a bipartisan coalition of 31 attorneys general are calling on the FDA to reject marketing authorization for all non-tobacco nicotine products, which are currently being sold without regulation of their contents, manufacturing, health effects, required warning labels or marketing claims.
In the 2022 letter, the coalition argues that vaping products don’t meet the FDA’s public health standard, and the regulatory agency should not gamble on the unknown effects of the products, despite the FDA having authorized 23 vaping products.
The other attorneys general signing onto the 2023 letter are from the states of Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Illinois, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Washington, and Wisconsin.
September 1, 2023
India Health Ministry Wants Crack Down on Vape Sales

Credit: Dovidovich Mikhail
The Union Health Ministry in New Delhi, India on Monday issued a public notice for stricter implementation of ‘The Prohibition of Electronic Cigarettes Act, 2019’, which prohibits the production, manufacturing, import, export, transport, sale, distribution, storage and advertisement of e-cigarettes.
“The Prohibition of Electronic Cigarettes (Production, Manufacture, Import, Export, Transport, Sale, Distribution, Storage and Advertisement) Act, 2019 on December 5, 2019, prohibits the production, manufacture, import, export, transport, sale, distribution, storage and advertisement of electronic cigarettes and the like devices in the interest of public health,” the Ministry’s public notice said, according to The Print.
The Ministry’s public notice comes after finding that the norms allegedly being flouted by the producers, manufacturers, importers, sellers and distributors in selling and advertising electronic cigarettes.
“It is hereby informed to all Producers, Manufacturers, Importers, Exporters, Distributors, Advertisers, Transporters including Couriers, Social Media Websites, e-Commerce Websites, Online shopping websites, Shopkeepers/ retailers etc. not to directly or indirectly, produce or manufacture or import or export or transport or sell or distribute or store electronic cigarettes, whether as a complete product or any part thereof; and if advertise electronic cigarettes or take part in any advertisement (in print, electronic media, internet or website or social media etc.) that directly or indirectly promotes the use of electronic cigarettes.”
A 2022 survey showed that 94 percent of Indian vapers have given up e-cigarettes and other electronic nicotine-delivery systems (ENDS) following their ban in 2019.
The survey, designed by the Campaign for Tobacco-Free Kids and conducted in collaboration with the National Law School of India University, Bengaluru, was disseminated online and targeted those aged 18 to 34. Most respondents were from Karnataka.
The survey also showed that over 56 percent of respondents believed there was a health risk in using ENDS products while 24 percent were unaware of any risks.
May 23, 2023
UK to Launch Youth Vaping ‘Enforcement Squads’

Credit: DIY13
The UK is set to launch “illicit vapes enforcement squads” as part of a crackdown on the illegal sale of e-cigarettes to youth under the age of 18.
Led by Trading Standards, the squads will work across the country and share knowledge across regional networks and local authorities.
The government says its priority is to prevent people from smoking, and supporting them to quit. It has admitted vaping is a preferable alternative for adults, reports Sky News.
However, it recognizes it has an issue with illegal sales to children and illicit vapes being introduced into the market.
Neil O’Brien, the health minister who will unveil the new plans said the new illicit vapes enforcement squad will work across the country and clamp down on those businesses that sell vapes to children.
“Our call for evidence will also allow us to get a firm understanding of the steps we can take to reduce the number of children accessing and using vapes,” he said.
April 10, 2023
New Zealand Pulls More Than 300 Vape Products

Credit: Gustavo Frazeo
New Zealand’s Vaping Regulatory Authority (VRA) has looked at over 8000 products on store shelves that had been notified to its register.
“For the majority of the products reviewed, no issues have been found, but in some cases, information provided by the manufacturer or importer indicated that they could include prohibited ingredients or they could have nicotine salt levels that exceed the legal limit,” says VRA manager Matthew Burgess.
“Following the review, companies have withdrawn notifications for 340 vaping products, meaning they can no longer be legally sold in New Zealand. We will be publishing a list of products that are no longer notified on the Ministry of Health website shortly.”
Up to 1,800 other vaping products could still be taken off shelves, reports 1news. The authority is working with companies that make or sell them and has given them until next week to provide more information.
Fair Go began investigating illegal sales of vapes to underage customers, and showed a 14-year-old mystery shopper with no identification could buy vapes over the counter.
It’s since been investigating the confusing labelling of vapes and the concentrations of nicotine in some of them.
December 2, 2022
18 Mississippi Retailers Cited for Underage Sales
Eighteen citations were issued last week to Mississippi, USA convenience stores for allegedly selling e-cigarettes and beer to people under 21 years old. Mississippi raised its age to purchase vaping products from 18 to 221 earlier this year.
Credit: Bill Oxford
Last week, the Mississippi Attorney General’s Alcohol and Tobacco Enforcement Division conducted the compliance checks in Lafayette County and the city of Oxford in partnership with the Oxford Police Department, according to a story on hottytoddy.com.
Out of 25 stores checked, there was a total of 18 violations, with several stores getting more than one violation.
“By Mississippi state law, the sale of beer, vape, and e-cigarettes to anyone under age 21 is illegal,” said Attorney General Lynn Fitch. “This action was taken to hold stores accountable as we all work to protect the health and safety of our children.”
November 19, 2020