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.
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.”
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.”
A vape shop in Wyandotte County in the U.S. state of Kansas business has been ordered to pay $30,000 for selling counterfeit vaping products. Kansas Attorney General Derek Schmidt says a Vinodbhai Patel, operator of Jay Ganegh, LLC, has been ordered to pay $30,000 in penalties for selling fake e-cigarette products.
Credit: Auremar / Dreamstime.com
The company was ordered to pay the civil penalties in a consent judgment that was approved on Tuesday in Wyandotte Co. District Court by Judge Constance Alvery, according to an article on wibw.com. Schmidt said the defendants were also ordered to reimburse the cost of the investigation into their business.
Schmidt said that the consumer protection judgment is the third reached by his office in the past six months that address counterfeit e-cigarette products discovered by his Tobacco Enforcement Unit. Schmidt said in October of 2020, Aaron Dune and Smoke Stax, LLC, were ordered to pay $5,000 in civil penalties and the costs of his investigation in a case filed in Sedgwick Co.
According to the ruling, the defendants knowingly misled customers by falsely representing e-cigarette products to be authentic branded merchandise when they were not. Schmidt said the products involved in the case included both vaping hardware and e-liquids, adding that additional investigations into counterfeit vaping products remain pending.
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.
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.
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.
U.S. Customs and Border Protection (CBP) officers at the Dallas Fort Worth International Airport working in conjunction with agents from the U.S. Food and Drug Administration (FDA) have seized 33,681 units of e-cigarettes with a manufacturer’s suggested retail price of $719,453.
Credit: SFGate
In December 2020, CBP seized 42 separate shipments arriving from China destined to various Texas counties. The shipments included individual disposable flavored e-cigarette cartridges resembling the Puff Bar brand, including Puff XXL and Puff Flow.
As part of an ongoing joint operation with FDA, officers and agents were looking to intercept counterfeit or other violative e-cigarettes, including certain flavored e-cigarettes imported to the U.S. that did not meet the Federal Food, Drug, and Cosmetic Act requirements, as amended by the Family Smoking Prevention and Tobacco Control Act.
“Many counterfeit, unapproved or unauthorized products are likely produced in unregulated facilities with unverified ingredients posing a serious health concern to consumers. It is especially alarming when these types of counterfeit and unauthorized products find their way into the hands of children as studies indicate,” said CBP Port Director Timothy Lemaux in a statement. “We will continue to take every opportunity to work with our partners at the FDA to intercept and seize products that threaten U.S. consumers.”
Tobacco products including e-cigarettes imported or offered for import into the U.S. must comply with all applicable U.S. laws.
“The FDA continues to prioritize enforcement against e-cigarette products, specifically those most appealing and accessible to youth,” said Mitch Zeller, director of the FDA’s Center for Tobacco Products. “We are very concerned about how popular these products are with youth. This seizure makes clear to tobacco product manufacturers, retailers and importers that the FDA is keeping a close watch on the marketplace and will hold accountable those companies that violate tobacco laws and regulations.”
CBP’s trade enforcement mission places a significant emphasis on intercepting illicit products that could harm American consumers. In fiscal year 2020, CBP seized 93,590 units of e-cigarettes that did not meet U.S. federal regulations.
In July 2020, the FDA issued a warning letter to Cool Clouds Distribution (doing business as Puff Bar), to remove their flavored disposable e-cigarettes and youth-appealing e-liquid products from the market because they do not have the required premarket authorization.
“Protecting American consumers from illicit and especially harmful tobacco products, such as counterfeit or flavored e-cigarettes, is of utmost importance to the FDA,” said Judy McMeekin, FDA associate commissioner for regulatory affairs. “We will continue to investigate and remove from the marketplace products that pose a particular danger to the public health.”
While the Puff Bar website appears to have recently stopped online sales and distribution in the U.S, it does not mean that the firm ceased distributing products to other retailers or selling products at brick and mortar retail stores, according to the FDA. The website’s store locators are still active, indicating that potential consumers can still search for products located for sale at retail stores.
Four people have been arrested and 10 million baht worth of e-cigarettes and related items seized in Bangkok following an investigation into illegal online sales of the banned products.
Credit Jim Moylan
The arrests followed a raid by police from the Central Investigation Bureau (CIB) of a warehouse in Kheha Rom Klao Soi 27 in the Rat Phattana area of Saphan Sung district on Friday, according to the Bangkok Post.
The officers seized 50,000 bottles of refill liquid for e-cigarettes, 10,000 refill pods, 1,500 e-cigarettes and 80 boxes of related products worth a total of at least 10 million baht ($335,814), CIB commissioner Police Lt. Gen. Torsak Sukwimol said during a briefing on Saturday.
One woman and three men were arrested. All were charged with colluding in the sale of banned products in violation of the Consumer Protection Act.
Torsak said the CIB had received complaints that e-cigarettes and refill products of various brands were being sold via Facebook. Administrators of the page claimed that their products were made from dried fruits and posed no harm to users.
CIB investigators found that the Facebook page had been active for three years. Female presenters or “pretties” were hired to promote the products, which drew many purchase orders, said Torsak.
The investigators then sought a warrant from the Criminal Court to search the warehouse that led to the seizure of the products, which were imported from China.
Authorities said they would also call the product presenters in for questioning.
The government passed a law banning the sale of e-cigarettes in 2014. Authorities have said import and use is banned for health reasons and because electronic cigarettes lure young people into becoming smokers.
The Singapore Health Sciences Authority (HSA) has prosecuted 14 people for selling e-cigarettes and related accessories online. According to a release from the HSA, the individuals were convicted in court between June and August 2020, with the total fines amounting to $255,500.
Authorities say the offenders were aged between 20 and 43, and had purchased the vaping products from overseas suppliers and then sold them illegally on various local social media and e-commerce platforms.
“These cases were detected through HSA’s cyber-surveillance and enforcement activities, which are targeted at deterring the illegal import and sale of e-vaporisers and related accessories in Singapore. More than $50,000 worth of e-vaporisers and related accessories were seized from the peddlers,” the release states. “The youngest offender, aged 20, was sentenced to a 15-month supervised probation, while the rest were fined between $5,500 – $47,500.
From 2018 to date, HSA has prosecuted 35 persons for selling e-cigarettes and related accessories. The stiffest penalty meted out so far was $99,000 in 2019, the release states.
The Indonesian government is reporting it has seized 1,240 boxes of vaping devices and e-liquid worth about RM124,000 ($29,890). The products are believed to have been in the process of being smuggled to a neighbouring country. The products were discovered hidden on the banks of Sungai Golok by the 9th Battalion of the General Operations Force (PGA9).
It is believed that the items were just waiting for the right time to be smuggled before they were confiscated, according to the star.com. PGA9 commanding officer Supt Nor Azizan Yusof said the seizure was carried out by a team patrolling the border during Ops Benteng.
He said while inspecting the Kak Yah illegal base near Kuala Jambu, Tumpat, at about 6.30pm on Thursday, the team found three packages left on the riverbank. “The team observed for 15 minutes but no one came to claim them. All the packages were taken to PGA headquarters in Kuala Jambu for further inspection, ” he said yesterday. All the items will be handed over to the Customs Department.
More than 86,000 unapproved vaping products, worth an estimated $1.72 million, were intercepted on the way to the Lehigh Valley in eastern Pennsylvania, the U.S. Customs and Border Protection said.
The shipment from China arrived Sept. 18 in the United States, identified as “LED lights” and addressed to a location in Northampton County, officials said.
Instead of lights, the shipment was actually 216 boxes of about 86,000 Alphaa Onee Plus flavored electronic cigarettes. The flavors included mojito, apple blue razz, strawberry milk, energy drink and pomegranate strawberry, according to a story on lehighvalley.com.
CBP officers at the Port of Lehigh Valley in Allentown detained the shipment and contacted the U.S. Food and Drug Administration.
Earlier this month, the FDA examined the e-cigarettes and determined they violated the Federal Food, Drug, and Cosmetic Act as misbranded consumer goods being imported by an unauthorized agent.
