E-cigarettes may not be sold in vending machines, Malaysia’s health ministry confirmed, according to a New Straits Times report.
According to the ministry, Section 10 of the Control of Tobacco Product Regulations for Public Health Act prohibits selling and displaying all “tobacco” products, including e-cigarettes. “Regulations regarding sales, including through vending machines, are under review and will be enforced alongside the act once approved,” the law states.
Earlier this week, the Malaysia Crime Prevention Foundation criticized the sale of vapes through vending machines at a Kuala Lumper mall, describing the practice as “irresponsible.”
The vending machine has been removed from the premises after an inspection by health ministry officials.
The ministry has begun briefing authorities nationwide on the prohibitions under the Control of Tobacco Product Regulations for Public Health Act.
The U.S. Food and Drug Administration announced it is seeking civil money penalties (CMPs) from nine brick-and-mortar retailers and one online retailer for selling Elf Bar products.
The FDA previously issued warning letters to these retailers for selling unauthorized tobacco products. However, follow-up inspections revealed that the retailers had failed to correct the violations.
The agency is now seeking a CMP of $20,678 from each retailer.
“The $20,678 CMP sought from each retailer is consistent with similar CMPs sought against retailers for the sale of unauthorized Elf Bar products over the last few months, including February and April of this year,” the FDA states.
The retailers can pay the penalty, enter into a settlement agreement, request an extension to respond or 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.
The U.S. Food and Drug Administration announced on May 1 that it had sent warning letters to 14 online retailers. The reason for the warning letters was that these retailers were selling unauthorized e-cigarette products.
The warning letters specifically mentioned the sale of disposable e-cigarette products marketed under various brand names such as Elf Bar/EB Design, Esco Bars, Funky Republic, Hyde, Kang, Cali Bars, and Lost Mary, according to press release.
The retailers receiving these warning letters sold or distributed e-cigarette products in the United States that lack authorization from FDA, in violation of the Federal Food, Drug, and Cosmetic Act.
Warning letter recipients are given 15 working days to respond with the steps they will take to address the violation(s) cited in the warning letter and to prevent future violations. Failure to promptly address the violations can result in additional FDA actions such as an injunction, seizure, and/or civil money penalties.
The agency announced on April 30 that the U.S. Marshals Service seized more than 45,000 unauthorized e-cigarette products valued at more than $700,000 in California.
The seized products were mostly flavored, disposable e-cigarette products, including brands such as Puff Bar/Puff, Elf Bar/EB Design, Esco Bar, Kuz, Smok and Pixi.
The U.S. Food and Drug Administration today announced the issuance of complaints for civil money penalties (CMPs) against 20 brick-and-mortar retailers and two online retailers for selling unauthorized e-cigarettes, including Elf Bar, a popular youth-appealing brand.
The regulatory agency previously issued warning letters to these retailers for selling unauthorized tobacco products. However, according to an FDA release, follow-up inspections revealed that the retailers had failed to correct the violations.
Accordingly, the agency is now seeking a CMP of approximately $20,000 from each retailer.
The approximately $20,000 CMP sought from each retailer is consistent with similar CMPs sought against retailers for the sale of unauthorized Elf Bar products over the last few months, including in Sept., Nov., Dec. and Feb.
The retailers can pay the penalty, enter into a settlement agreement, request an extension to respond, or 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.
It remains to be seen whether Malaysia will remain as tolerant of vaping as it is today.
By Norm Bour
Over the past four months, I have been in four different Asian countries. Each has its own currency, language, food and culture. They also all have their own vape markets, which differ based on regulations, cost of purchase (compared to income) and, in many cases, religious restrictions.
In Malaysia, my current homestay, the dominant religion is Islam, and I have seen more women wearing hajibs than in previously visited countries. What is fascinating is the exceptionally high number of young female vapers walking in the malls and on the streets. In a country so devout, I asked a vape shop clerks how religious leaders feel about vaping, especially among women.
“Cigarette and tobacco usage is very high within the Muslim community,” said one of the counter girls from Vape VG, which is located in a mall. “And even though most of us realize it’s an unhealthy habit, there is no opinion on it from our religious leaders.” She did not address the female perspective.
When I followed up and asked her which were the most popular products, she said (as many shopkeepers globally do), “flavors of all kinds, especially fruity [ones].”
I asked a group of several female vapers if they felt out of place or self-conscious about vaping in public or even in private. They said they had no problem doing it on the streets, but some felt uncomfortable doing it in their parents’ presence—even if their parents smoked.
Regardless, there is still a strong motivation in the country to increase tobacco taxation. In its February 2024 budget meeting, the government proposed to impose an excise duty on liquids or gels containing nicotine used for e-cigarettes or vaping devices—but that is as far as it got.
And Malaysia’s current excise duty on e-cigs and liquids with nicotine applies to just a few manufacturers. Meanwhile, the taxation on traditional cigarettes has not changed since 2017.
So far, the vape market in Malaysia is prolific and in the open. You don’t need to go very far to find a vape shop. Ironically, we saw more vape shops than tobacco stores, as my wife had difficulty finding the clove cigarettes she enjoys sometimes. The vape stores range from tiny kiosks, like Action Vape, within the walkways connecting buildings to small units of just a few square feet to the larger outlets, like Brain Freeze Vape, which claims to be the largest in the country.
With a population of just under 2 million, Malaysia’s capital, Kuala Lumpur, provides valuable insights into the country’s vaping market.
Considering that vaping is banned in neighboring Thailand, Singapore and Brunei, plus nearby Cambodia and Laos, it’s refreshing to see an open market. One shop owner confirmed that his store gets a lot of tourists from abroad, especially from countries where vaping is outlawed.
Malaysia, too, came close to banning vapes under its “Generational Endgame” bill. Proposed in 2022, this legislation would have prohibited anyone born in 2007 or later from buying and using cigarettes or vaping products in Malaysia, in effect gradually raising the legal age until it covered the entire population. The bill never passed, however; it was abandoned in November 2023, officially due to concerns about its constitutionality. Critics, however, blamed the U-turn on industry lobbying.
With that said, Malaysia still restricts underage sales. The law prohibits sales to those under the age of 18, but loopholes make that restriction toothless, according to critics. Health advocates complain that leading tobacco companies such Philip Morris International, BAT and Japan Tobacco International wield considerable influence in Malaysia.
Last year, the government exempted liquid nicotine and gels from its Poisons Act, effectively legalizing vaping as of last April. The move angered many people. Currently, the Control of Smoking Products for Public Health Bill 2023 prohibits the advertising and sponsorship of e-cigarettes or vape products.
Many businesses see potential in the Malaysian vaping market. At the end of March, Airscream U.K. announced plans to invest myr100 million ($21.12 million) in its operations over the next five years and move its headquarters to Malaysia, according to media reports. The company has already established administrative, sales and marketing operations and a showroom in Shah Alam. It has close to 40 employees locally and 100 globally.
Airscream founder and CEO Sam Ong cited a robust market and vaping industry ecosystem as reasons for the company’s decision. Over the past decade, Malaysia’s vaping industry has grown into a myr3 billion business, employing more than 30,000 Malaysians, according to the Malaysian Vape Chamber of Commerce.
Ong believes the market is poised for further growth, potentially driving more foreign direct investments into the country and bolstering job creation. “We are also encouraged by the passing of the Control of Smoking Products for Public Health Bill 2023, which brings Malaysia on par with other countries around the world, including the U.K., Australia, Thailand and Singapore, which have standalone legislation on tobacco and vape,” Ong said.
Additionally, China-based Ispire Technology received ISO9001: 2015 Quality Management System, ISO14001: 2015 Environmental Management System and ISO13485: 2016 Quality Management System Medical Device certifications for its 31,000-square-foot manufacturing facility in Malaysia earlier this year. Company leadership announced previously that Malaysia offers more business-friendly tariff rules than some other Asian countries.
“Earning three ISO certifications at our Malaysian manufacturing facility is a testament to our team’s ability to quickly bring the facility up to some of the highest standards in the industry, allowing us to expand our gross margins, geopolitically de-risk our production and service other businesses who need manufacturing for their vape hardware,” said Ispire’s Co-CEO, Michael Wang. “As the facility ramps up production, our gross margin is expected to increase due to the lack of a tariff when assembling products in Malaysia and then shipping them to the U.S.
“This is in contrast to the 25 percent tariff incurred when shipping finished products from China.”
The vaping and smoking trends in Malaysia seem contrary to those in many other countries. E-cigarette use among Malaysian youths aged 13–17 rose from 9.8 percent in 2017 to 14.9 percent in 2022, according to the National Health and Morbidity Survey. During the same period, cigarette smoking rates dropped from 13.8 percent to 6.2 percent.
With organizations such as the Southeast Asia Tobacco Control Alliance pressuring countries in the region to crack down on vaping, it remains to be seen whether Malaysia will remain as tolerant of vaping as it is today.
Norm Bour is the founder of VapeMentors and works with vape businesses worldwide. He can be reached at norm@VapeMentors.com.
A bill co-sponsored by 20 Kentucky lawmakers aims to limit the number of e-cigarettes, vapes and other next-generation tobacco products retailers are allowed to place on store shelves.
The Senate health services committee heard testimony on House Bill 11 on Thursday. The bill limits the sale of products to those authorized by the U.S. Food and Drug Administration and would punish retailers who sell unauthorized products or to anyone under 21 years of age.
“These vapes are not even supposed to be offered for sale per the FDA,” said Rep. Rebecca Raymer, one of the bill’s co-sponsors, according to media reports. “We, as a state, have an obligation to offer some protection to our citizens.”
Among other things, the bill would:
Require the Secretary of State to create and publish a list of certain tobacco product retailers;
Require the Department of Alcoholic Beverage Control to create and maintain a tobacco noncompliance database and reporting system;
Require wholesalers to verify a retailer’s presence in the database prior to transactions;
Establish and impose fines for wholesalers that unlawfully sell to a retailer that is in the noncompliance database;
Make ineligible any retailer with unpaid fines that are more than 60 days overdue from selling Tobacco Control Act-covered products until the fines are paid;
Direct manufacturers of Tobacco Control Act-covered products to provide safe harbor certification to wholesalers and retailers of their products;
Prohibit a retailer from selling Tobacco Control Act products to persons under 21 years of age.
“What you’re going to hear from the people in opposition of this bill is that it’s going to take everything off the shelf,” Raymer said. “That is just simply not true. There’s other states that have used the same definition that we are using.”
Troy LeBlanc, a Louisville vape retailer and distributor, traveled to Frankfort to speak against the bill, which he said would devastate dealers. In essence, LeBlanc said HB11 would create a monopoly.
“It will ban about 98 percent of my products as well,” LeBlanc said. “Because all it’s going to do is to make sure that Altria is the main seller in every convenience store throughout the city — which is Juul.”
LeBlanc and other like-minded retailers want lawmakers to change the bill to put the products in 21-and-older stores and even increase the fines.
“We do not want children smoking,” LeBlanc said. “We’ve even suggested that the fines that they have — $1,000 for the first occurrence — be raised to $5,000. Because we want people who are selling to minors punished.”
South Carolina lawmakers are advancing a bill that would restrict vape shops to selling only FDA-approved products. Supporters, including major tobacco companies, say the goal is to inform retailers and consumers about what products are legal to market.
“The goal is to try and protect our children from getting hooked on nicotine and using what I call these attractive nuisance vape products at a very young age,” said Senator Brad Hutto, a lead sponsor of the bill.
Hutto and Senator Thomas Alexander co-authored the legislation, which proposes the establishment of an official registry listing all FDA-approved vape products.
The State Attorney General would oversee this registry, effectively prohibiting the sale of any product not included. Opponents, including vape shop owners, say the bill will hurt their industry.
Any retailer found selling unapproved products could face severe penalties, including fines and suspension of their business license. If signed into law, the registry must be operational by September 1, 2024, or whenever the Attorney General releases it for the first time, whichever happens later.
Several states have passed or are considering vape registry laws.
Legislation to clear Florida shelves of all but 23 vaping products — including all flavors but tobacco — is advancing despite complaints from retailers that it will crush the industry and send consumers back to cigarettes.
The bill (SB 1006) would limit sales in Florida only to vape products approved by the U.S. Food and Drug Administration (FDA), all of which are made and sold by major tobacco companies. Scores of other products now sold throughout the state would, in turn, be banned.
More than a dozen Floridians in the vape industry spoke out against the bill before the Senate Appropriations Committee on Agriculture, Environment and General Government unanimously approved it, according to media reports.
However, according to Sen. Keith Perry, the measure’s sponsor, the limits are necessary to protect children and consumers from unsafe products and counteract a $363 million illegal vape market.
If approved, SB 1006 would create a directory under DBPR for manufacturers of nicotine dispensing devices, e-cigarettes, and vape cartridges to register the products they sell that have received FDA approval. DBPR would then publish that list online for retailers and wholesalers to review and ensure they comply.
The bill would also require wholesalers to receive a permit to do business in Florida and prohibit manufacturers from destroying certain records, including information identifying their customers, for three years.
Companies or people that provide false information to DBPR would face third-degree felony charges, punishable by up to five years in prison and $5,000 in fines. Manufacturers that knowingly ship or receive unapproved or unregistered vape and e-cig products would face up to $1,000 in fines per violation.
Any person who knowingly ships or receives unapproved or unregistered products would face a second-degree misdemeanor charge, punishable by up to $500 in fines and 60 days in jail.
DBPR estimates it will cost an additional $562,500 to cover nine new positions and create an online system necessary to facilitate and enforce the proposed law, a Senate staff analysis of the bill said.
Nick Orlando, a shop owner in Clearwater and President of the Florida Smoke-Free Association, said the bill would have a staggering impact on the growing industry here while doing nothing to improve public health.
He recommended that lawmakers toss the measure and instead draft another that will allow the market to thrive while still boosting safety. Such a bill, he said, should include the creation of a registry under DBPR that uses a federal list of manufacturers, create a permitting fee to fund enforcement, and limit the sale of vape products to 21-and-over specialty stores.
“This addresses the registry, youth access, and enforcement,” he said. “I believe Florida can do better.”
SB 1006 will next go to the Senate Fiscal Policy Committee, after which it could receive a floor vote. A similar House companion (HB 1007) by Rep. Toby Overdorf also pends one more committee hearing before being eligible for a full vote by the chamber.
A big decision is expected today regarding the sale of vapes in Louisiana.
In 2023, a law was passed to triple taxes on vape products in Louisiana. The extra revenue was to be allocated to entities like state police and the State Fire Marshal’s Office.
“All of the products we have here? Like 90 percent of them are not on there. So due to that, we were supposed to take a bunch of things off the shelves,” Ayub Kahn with Lit Vapes said, according to media reports.
Vape shop owners were supposed to register any approved products with Alcohol and Tobacco Control by November 2023, but that registry never came to fruition after the Louisiana Convenience Store and Vape Association filed a lawsuit.
They argue the law is unconstitutional and works against itself – it increased taxes on products, the majority of which it banned.
A judge granted a preliminary injunction in January temporarily halting the law from being enforced, and the permanent injunction hearing is taking place today.
Sales of cigarettes and e-cigarettes have declined in the last two weeks, while sales of oral nicotine pouches have seen significant growth, according to analysts at TD Cowen.
They say in a research note that cigarette volumes across multiple channels were down 10 percent in the two weeks ending Jan. 13, a steeper decline than the trailing four weeks and 12 weeks.
Bonnie Herzog, managing director at Goldman Sachs, remain cautious on the U.S. tobacco/nicotine industry in the near term as the tobacco consumer remains under substantial financial pressure.
She stated in an email that many consumers are being more selective in their purchases and turning to more affordable alternatives, such as 4th tier/deep discount cigarettes, modern oral tobacco and, increasingly, illicit or gray market disposable vapor products.
“Shifts in category and consumer spending dynamics have been further exacerbated by flavor ban momentum at the state & federal level (Final Rule expected in March) and uncertainty with regard to the future of the e-cig category and category innovation (with FDA PMTA reviews still pending on big market brands such as JUUL and VUSE Alto, as well as menthol variants more broadly),” Herzog wrote.
E-cigarette sales fell 11.3 percent in the two-week period and 10.7 percent in the four-week period, according to Barron’s.
Sales of smokeless tobacco, including nicotine pouches, meanwhile grew 12.1 percent in the two-week period and 13 percent in the four-week period.
The smokeless category continues to show strong dollar sales growth driven by the Zyn brand, the analysts say.
