Category: Illicit Trade

  • RELX Warns Consumers of Growing Counterfeit Sales

    RELX Warns Consumers of Growing Counterfeit Sales

    Example of a fake RELX website selling unofficial RELX products

    RELX International has warned consumers against purchasing its products through unofficial or unlicensed websites. “It has recently come to the attention of RELX International that a number of unlicensed persons or companies are attempting to profit off of the good and responsible reputation of the RELX brand in a number of markets, including Australia and Philippines,” the company stated in a press release.

    “In addition to selling unlicensed and potentially fake products, these websites and social media channels have been disseminating a variety of unfounded claims about our products or e-cigarette products in general. RELX International only provides science-based information about our products and only sells products to adult smokers or vapers. Furthermore, RELX International never uses any cartoons or ‘kid-friendly’ images or videos in our branding.

    “RELX International established the Golden Shield Program in 2019 to help prevent the production and sale of illicit e-cigarette goods such as those mentioned above. With the goal of safeguarding adult e-cigarette users’ right to access quality products, members of RELX International’s Golden Shield Program utilize large amounts of data and other technologies to track down illicit e-cigarette products sold online and offline. The Golden Shield team actively works with online social media platforms, online e-commerce platforms as well as Customs authorities to eliminate illicit vaping products from the market.

    “The Golden Shield team has already helped authorities launch 28 criminal cases related to the illegal production and sale of illicit or copyright-infringing e-cigarette products. Over 77,000 websites and over 6,000 social media accounts have been taken down due to the Golden Shield team’s efforts, and 550,000 illicit products have been removed from the market.

    “Moving forward we are committed to getting even more counterfeit products off the market.”

    The release lists all the official RELX websites as well as provides an email address to confirm third-party websites that are selling authentic RELX products.

  • Malaysia’s Customs Seizes 1,276 Liters of Illegal E-Liquid

    Malaysia’s Customs Seizes 1,276 Liters of Illegal E-Liquid

    The Royal Malaysian Customs Department has seized RM2.7 million worth of e-liquid, which also carried RM273,480 in unpaid taxes. The KLIA Central Zone Enforcement Unit III personnel conducted an inspection on two containers from the United States in Northport, Port Klang, at 6pm on June 24.

    Central Zone Customs principal assistant director Datuk Zazuli Johan said the team found 1,276.24 liters of e-liquid suspected to contain nicotine that had been declared as “atomizer devices” (hardware) in the containers. The e-liquid was also found to have exceeded their expiration date, according to the Philippine Star.

    “We believe that the product would be repackaged before being distributed in the local market. The consignment was brought in without a valid import license and tax on it had not been paid,” he is quoted as saying in a statement on July 2, adding that e-liquid is classified as prohibited merchandise in Malaysia under the Customs (Prohibition on Imports) Order 2017.

  • CBP Atlanta Seizes Nearly 20,000 Counterfeit Vape Pens

    CBP Atlanta Seizes Nearly 20,000 Counterfeit Vape Pens

    U.S. Customs and Border Protection (CBP) officers last week seized nearly 20,000 flavored vape pens worth nearly $600,000 in Atlanta. According to the agency, last Wednesday, CBP Atlanta officers found 66 boxes of “Ricky and Morty” branded vape pens and e-cigarettes as they were inspecting a shipment and suspected the items violated copyright and trademark law.

    Credit: CBP

    The vape pens, which originated in a shipment from China, were to be distributed across Georgia, according to a statement. CBP contacted Warner Bros. Entertainment Inc. and confirmed they hadn’t licensed their copyright of the animated series for vape pens. Officers ultimately seized the 19,800 vape pens with an estimated retail price of over $590,00.

    “One of our primary missions is to intercept merchandise that could pose a serious health risk to the consumer, but this shipment of counterfeit vape pens violated Intellectual Property Rights,” said Paula Rivera, Atlanta’s CBP port director. “CBP collaborates with many government agencies to enforce laws to protect the health and safety of the consumer and our communities.”

    In January, CBP Chicago seized 50,000 illegal “Rick and Morty” vape pens. CBP says each year, they seize millions of counterfeit goods that could otherwise hurt the U.S. economy, threaten consumers and fund criminal activity. Counterfeit items are often sold in underground outlets or on third-party e-commerce sites, according to CBP. Consumers might think they’re buying a genuine product but are left with a poor-quality item.

    Last year, CBP seized nearly $1.3 billion worth of goods that violated intellectual property rights. The FDA announced an increased enforcement priority of electronic nicotine delivery systems, and issued detailed guidance to the industry of these new enforcement priorities that regulate the unauthorized importation of tobacco products.

    CBP provides basic import information about admissibility requirements and the clearance process for e-commerce goods and encourages buyers to confirm that their purchases and the importation of those purchases comply with any state and federal import regulations.

    CBP conducts operations at ports of entry throughout the United States, and regularly screens arriving international passengers and cargo for narcotics, weapons, and other restricted or prohibited products. CBP strives to serve as the premier law enforcement agency enhancing the Nation’s safety, security, and prosperity through collaboration, innovation, and integration.

  • More Than 10,000 Illegal Juul Pods Seized by CBP

    More Than 10,000 Illegal Juul Pods Seized by CBP

    U.S. Customs and Border Protections (CBP) officers in Indianapolis seized six shipments containing over 10,000 unapproved Juul Pods. All the shipments originated from an individual in Ontario, Canada and were headed to various locations in New York and New Jersey.

    The FDA determined the shipments violated the Federal Food, Drug, and Cosmetic Act (FD&C Act) as misbranded consumer goods being imported by an unauthorized agent, according to a CBP press release. Tobacco products imported or offered for import into the United States must comply with all applicable U.S. laws. Read more about the FDA’s regulations governing e-cigarettes and other tobacco products.

    The shipments arrived separately and were all seized on April 8. The packages were mis-manifested as electrical apparatus, a common practice used by smugglers. CBP believed the shipment was intentionally improperly labeled to avoid detection. A total of 10,464 pods were seized. The pods had an MSRP over $156,000.

    “Our officers are dedicated to identifying and intercepting these types of shipments that could potentially harm communities,” said Kerry Carter, Acting Port Director-Indianapolis. “Our officers and specialists enforce hundreds of laws for many partner agencies, and are committed to ensuring the health and safety of American citizens.”

    Last year the FDA announced an increased enforcement priority of electronic nicotine delivery systems, and issued detailed guidance to the industry of these new enforcement priorities that regulate the unauthorized importation of tobacco products.

    CBP provides basic import information about admissibility requirements and the clearance process for e-commerce goods and encourages buyers to confirm that their purchases and the importation of those purchases comply with any state and federal import regulations.

    CBP conducts operations at ports of entry throughout the United States, and regularly screens arriving international passengers and cargo for narcotics, weapons, and other restricted or prohibited products. CBP strives to serve as the premier law enforcement agency enhancing the Nation’s safety, security, and prosperity through collaboration, innovation, and integration.

  • U.S. Customs Seizes 77,400 Illegal Cartoon Vapes

    U.S. Customs Seizes 77,400 Illegal Cartoon Vapes

    U.S. Customs and Border Protections (CBP) officers at O’Hare International Airport this week seized 77,400 Rick and Morty vape pens from China that were destined to a distribution company in Georgia. CBP officers found the popular cartoon characters on the packaging and suspected they violated copyright and trademark laws.

    rick and morty vape pen
    Credit: CBP

    Authorities called Warner Bros. and confirmed the company didn’t license their Rick and Morty copyright for vape pens, according to a press release. CBP Import Specialists determined the shipments of vape pens was infringing upon the “Rick and Morty” copyright. The MSRP for the bootleg pens was valued at $1.55 million.

    “Often CBP seizes vape pens because they violate FDA guidelines, but these parcels violate copyright laws which adds to the charges and complexity of the case,” said Shane Campbell, Area Port Director-Chicago. “Counterfeit products are unsafe for consumers, harm the economy, damage the revenue and image of the companies, and could cost American jobs.”

  • Targeted Blitz Finds Fake Juul Products in South Florida

    Targeted Blitz Finds Fake Juul Products in South Florida

    illegal juul pods
    Juul Labs is seeking out retailers selling illegal counterfeit and compatible Juul pods and devices.

    Juul Labs announced today that it recently initiated an enforcement campaign in South Florida to identify retailers trafficking counterfeit and other illicit vapor products. A press release states that the company obtained intelligence on upstream suppliers and took expansive enforcement action to address a growing black market.

    “We need to be a responsible and trusted steward of vapor products,” said Adrian Punderson, vice president of Brand Protection at Juul Labs. “As such, it is our obligation to support enforcement against illicit and illegal products as we strive to reset the vapor category and earn a license to operate in society.”

    Juul Labs’ Brand Protection Team conducted an investigation of 917 retailers in Miami-Dade County and Broward County [Florida], representing a major urban area that comprises various classes of retailers, including convenience stores and specialty vape shops, the release states. “These South Florida counties also are in close proximity to a U.S. port-of-entry and international-mailing facility — known entry points for the importation of illicit products.”

    With the support of a third-party compliance auditor, Juul Labs conducted product surveillance and obtained samples from the retailers. The surveillance identified 30 retail outlets (3.3 percent of all surveilled outlets), as selling illicit counterfeit, diverted or unauthorized Juul-compatible products.

    “Unauthorized Juul-compatible products are designed and marketed to be used with authentic Juul products without the company’s authorization. Counterfeit and compatible products violate intellectual-property rights and may raise additional health and safety risks given their untested ingredients and lack of manufacturing and quality controls and unsanitary conditions in which they are produced,” the release states. “Illicit vapor products actively undermine underage-prevention measures given their ease of access.”

    Of the 30 outlets in South Florida selling illicit products, 6 outlets sold counterfeit Juul Pods, primarily offered in illegally marketed flavors, while 1 sold counterfeit Juul devices, 10 outlets sold diverted Juul Pods, primarily diverted from Canadian and Russian markets, and 13 outlets sold illegal and unauthorized compatible pods, with the majority of these compatible brands subject to International Trade Commission exclusion orders.

    “Insights into these illicit activities will inform broad enforcement actions against these violating retailers, including cease-and-desist letters, training and education, and litigation as needed. But these actions are just a starting point: The Brand Protection Team will collect additional records and information from the violating retailers to identify upstream suppliers and sources of the illicit products,” the release states. “This will result in further enforcement action to disrupt the illicit trade of black market vapor products that are impacting local communities. Juul Labs will deliver these findings to law enforcement authorities and support their efforts to bring legal action.”

  • Counterfeit Juul Factory Shut Down by Chinese Authorities

    Counterfeit Juul Factory Shut Down by Chinese Authorities

    Chinese authorities have shut down an illicit enterprise involved in the manufacture and international distribution of counterfeit Juul products in China, Juul Labs announced in a press release. The operation resulted in the seizure of more than 110,000 counterfeit products, closure of the production facility and arrest of criminal actors behind the illicit enterprise.

    Through its global enforcement operations, Juul Labs was able to identify individuals who were offering suspected counterfeit Juul products at wholesale from China. After in-depth surveillance and monitoring, the company was able to locate a clandestine factory manufacturing counterfeit Juul products for international distribution. Juul Labs then shared this information with Chinese law enforcement and supported its efforts to investigate and raid the illicit factory.

    In addition to seizures of counterfeit Juul products, packaging and labeling, officials were able to retain a significant amount of documentation on businesses and individuals with purchase history, which will be used in follow-up investigations and enforcement actions. As a result of the raid, both the factory owner and manager have been arrested and will be subject to criminal prosecution.

    The raided factory had thousands of counterfeit packaging for Juul products at 5.0 percent nicotine by weight in various flavors, with production runs ongoing for counterfeit Juul pods in menthol flavor. Juul Labs suspects the that the products were intended for the U.S. market. In addition, the factory appeared to have been manufacturing disposable vapor products under various brand names.

  • Next Generation Labs Assigns Patent Rights to Nextera

    Next Generation Labs Assigns Patent Rights to Nextera

    Photo: Martinmark – Dreamstime.com

    Next Generation Labs (NGL), the world’s largest manufacturer of TFN R-S, S and R isomer nicotine, has assigned the rights of its Republic of Korea R-S nicotine manufacturing patent to NextEra Co.

    NGL said it has taken this step “to help strengthen direct in-market enforcement efforts by NextEra against unscrupulous manufacturers who have attempted to ship unauthorized synthetic, nonsynthetic and, in some instances, counterfeit or mislabeled TFN synthetic nicotine vape products into the South Korea market.”

    NextEra is NGL’s exclusive TFN partner and is the largest flavor formulator and distributor of synthetic nicotine vape products in South Korea. Under the assignment, NextEra products containing TFN will continue to be sold, and NextEra will use all means available to protect the market and prohibit violative brands from entering South Korea.

    “This is a strategic patent assignment that will give NextEra the full freedom to use all legal means at its disposal to seek enforcement of existing intellectual property rights related for TFN recreational nicotine in the market,” NGL wrote in a statement

    “Next Generation Labs fully expects NextEra to immediately take action against violators and utilize all necessary legal remedies against any business seeking to either: divert R-S nicotine product sales into South Korea from other markets, attempt to sell mislabeled tobacco-derived nicotine as a synthetic product, or to sell counterfeit TFN products in South Korea,” the company added.

    The terms of the patent transaction have not been made public, and the transaction will not impact Next Generation Labs’ other patents in South Korea or impact control of patents in any other jurisdiction worldwide.

  • CBP Seizes 50,000 Unapproved Vape Pens in Chicago

    CBP Seizes 50,000 Unapproved Vape Pens in Chicago

    U.S. Customs and Border Protections (CBP) officers at Chicago O’Hare’s International Mail Branch seized 50,000 dragster Mountain Vape Pens on Tuesday. The shipment, originated from Hong Kong, and was destined for a residence in Alexandria, Kentucky.

    illegal vape pens
    Credit: CBP

    The U.S. Food and Drug Administration (FDA) determined the shipment violated the Federal Food, Drug, and Cosmetic Act (FD&C Act) as misbranded consumer goods being imported by an unauthorized agent, according to a press release. Tobacco products imported or offered for import into the United States must comply with all applicable U.S. laws. Read more about the FDA’s regulations governing e-cigarettes and other tobacco products.

    The shipment was seized on January 19, and was mis-manifested as Lithium Ion Battereies, a common practice used by smugglers, CBP states. “CBP believed the shipment was intentionally improperly labeled in order to avoid detection,” the release states. “Additionally, CBP presumes the products are being sold without authorization. CBP continues to work diligently to stop non-legitimate products from entering the U.S.” The pens had an MSRP of $450,000.

    “Our officers are dedicated to identifying and intercepting these types of shipments that could potentially harm our communities,” said Shane Campbell, Area Port Director-Chicago. “Customs and Border Protection’s trade enforcement mission places a significant emphasis on intercepting illicit products that could harm American consumers, and we will continue to work with our consumer safety partners to identify and seize unsafe and illicit goods.”

    Last year the FDA announced an increased enforcement priority of electronic nicotine delivery systems, and issued detailed guidance to the industry of these new enforcement priorities that regulate the unauthorized importation of tobacco products.

    CBP provides basic import information about admissibility requirements and the clearance process for e-commerce goods and encourages buyers to confirm that their purchases and the importation of those purchases comply with any state and federal import regulations.

    CBP conducts operations at ports of entry throughout the United States, and regularly screens arriving international passengers and cargo for narcotics, weapons, and other restricted or prohibited products. CBP strives to serve as the premier law enforcement agency enhancing the Nation’s safety, security, and prosperity through collaboration, innovation, and integration.

  • Activists Raise Awareness of Black-Market Vapor Products

    Activists Raise Awareness of Black-Market Vapor Products

    Photo: Tobacco Reporter archive

    The National Crime Prevention Council (NCPC) and National Intellectual Property Rights Coordination Center (IPRC) in the U.S. have released an innovative toolkit as part of their nationwide campaign to raise awareness on the dangers of black-market vapor products and empower law enforcement and adult community leaders to prevent and enforce against these illicit activities.

    The IPRC and NCPC launched this public-private partnership, with the support of Juul Labs, in October 2019, seeking to raise awareness on the consequences of illicit vapor products, with the objective of delivering tools and resources to communities grappling with this critical issue across the country. Now, the IPRC and NCPC have expanded upon this initiative by providing law enforcement and other key stakeholders with a toolkit that will aid in their efforts to educate and mobilize their communities against this dangerous illicit trade.

    The toolkit is a comprehensive resource that details the various forms of illicit vapor products, such counterfeit, compatible and diverted products, and teaches the community how to spot such products. It also contains broader educational resources, along with strategies on how best to elevate these vital messages through social media, community events and meetings, and in cooperation with local businesses.

    According to Juul, Illicit vapor products present a number of public health, economic and security consequences. Critically, they undermine underage-prevention measures because of their ease of access and may present additional health and safety risks for adult consumers given that they often are produced in unsanitary conditions without manufacturing and quality controls and lack ingredient testing and product characterization. They also may contain harmful chemicals not present in other, authentic products.

    As part of this campaign, and with the support of IPRC, NCPC will leverage its vast, nationwide network to get this toolkit into the hands of law enforcement, trade partners, and other adult community leaders.

    “It is imperative that we continue to partner across stakeholders, including law enforcement, to address the illicit market of vapor products,” Juul wrote in a statement. “Supporting public-private partnerships like the IPRC/NCPC initiative is one way we can actively fight back against illicit trade of vapor products. By empowering stakeholders through awareness and education, we can address the illicit trade of vapor products and foster a more responsible marketplace for the category.”