Tag: Canada

Study Finds Flavor Bans Boost Combustible Sales

Credit: Balint Radu
A new study has found that flavor bans boost sales of traditional combustible cigarettes. The study, E-cigarette Flavor Restrictions’ Effects on Tobacco Product Sales, concluded that restrictions on the sale of flavored nicotine vaping products could lead to significant increases in traditional cigarette sales.
“Given that combustible cigarettes are widely recognized as more harmful than vaping, the study’s findings raise pressing questions about the public health implications of such policies, according to a release from the Canadian Vaping Association (CVA). The group “urges Canadian governments to review the study’s findings and ensure that vapor product regulations are inline with harm reduction and Canada’s Drugs and Substances Strategy.”
Key Highlights from the study include:
Substitution to Cigarettes: For every 1 less 0.7 mL pod sold due to flavor restrictions, there’s an increase of 15 additional cigarettes purchased.
Rise in Cigarette Sales Over Time: While the short-term effects are less clear, the long-term correlation between vaping flavor policies and a surge in cigarette sales is robust. This surge occurs especially when such policies have been in place for a year or more.
Young Population at Risk: The relation between vaping flavor restrictions and increased cigarette sales isn’t limited to a particular age group. Alarmingly, there’s also a surge in sales for cigarette brands popular among underage youth.
The research firmly underscores the unintended consequences of restricting flavored product sales, according to CVA. While the research indicated that these policies do achieve their goal of reducing flavored product use, they inadvertently boost the sales of traditional cigarettes across all age groups.
Given the stark difference in health risks between cigarettes and vaping, the study contends that the overall health benefits of such policies may be minimal or even potentially harmful in the broader perspective.
October 2, 2023
Biometric Age Verification Gaining Ground in Canada

Biometric measures for age verification are gaining ground in Canada and Washington state, as retailers and regulators try to prevent youth from accessing vapes and other restricted products.
Imperial Tobacco Canada (ITCAN), which produces most of Canada’s major cigarette brands as well as the VUSE brand of vapes, has announced the expansion of a pilot for a biometric pass to access its VUSE retail stores, according to media reports.
According to a release, customers who sign up for the VUSE Pass through a one-time age verification process will be able to verify their age at VUSE outlets with a biometric palm scan.
The nationwide rollout follows a successful pilot program in Toronto.
“We say we are committed to preventing youth vaping, and we mean it,” says Frank Silva, the president and CEO of ITCAN. “A root cause of the problem is that kids unfortunately have access to vaping products. We’ve taken an important first step by making sure that we do more to control access to our own stores.”
Silva says there is a lack of government leadership around ensuring proper age verification procedures for restricted products. “Governments have all the tools necessary to stop retailers from selling to minors. They are simply not being enforced.”
Lawmakers in Washington State are deciding whether or not regulators will be able to add fingerprint scans for biometric age verification to their ID toolkit. The State Liquor and Cannabis Board has been considering a pilot project for biometric age verification. But, as the Center Square reports, doubts and questions about equity, security and oversight continue to arise.
September 28, 2023
Vaping Group Blasts Quebec Flavor Ban Proposal

Photo: vmargineanu
A proposal by the government of Quebec to ban nontobacco-flavored nicotine vaping products will have negative consequences for public health if enacted, according to the Canadian Vaping Association (CVA).
In addition to the flavor restrictions, the recently released draft legislation proposes a volume limit of 2 mL on prefilled devices and a limit of 30 mL on refill containers. Additionally, the regulations would restrict nicotine concentrations to 20 mg/mL and prohibit the use of any form, appearance or function that may be attractive to minors, both of which have already been regulated by the federal government.
If the draft rules are implemented, Quebec, with its population of 8.5 million, will become the largest Canadian province to prohibit flavors, according to media reports. Quebec is the country’s second-most populous province. According to the Alliance of Vape Shops in Quebec, there are over 400 independent vape shops in the province, employing over 2,200 people and generating more than $300 million in economic activity. The trade group predicts the shops will all close.

Quebec’s decision to ban flavors is a major win for tobacco companies, out-of-province vendors and contraband sellers.
Darryl Tempest, government relations counsel to the CVA board
In 2021, federal health agency Health Canada proposed a flavor ban that was scheduled to take effect in early 2022, but that plan seems to have been abandoned or postponed indefinitely without explanation. Health Canada’s updated vaping products regulations page makes no mention of the flavor restrictions.
The CVA says Quebec proposed its rules despite warnings by the industry about their negative impacts. Vaping is proven to be significantly less harmful than smoking, according to the CVA, which says there is substantial evidence from jurisdictions that have already implemented flavor bans that the public health outcome is negative, as many vapers will return to smoking and fewer smokers will switch to vaping.
“Quebec’s decision to ban flavors is a major win for tobacco companies, out-of-province vendors and contraband sellers,” said Darryl Tempest, government relations counsel to the CVA board, in a statement. “What Quebec has done is shift demand to tobacco owned products, retailers outside of Quebec and criminals. Quebec’s small businesses and domestic industry will be irreparably harmed in favor of multinational corporations,” said Tempest.
April 21, 2023
Quebec Proposes Ban on Flavored Vape Products

Credit: Ronniechua
Vaping products that contain flavors or aromas other than tobacco could soon be banned in Quebec under new rules proposed by the government Wednesday.
The Quebec government hopes the change to the provincial regulations will make vaping products less attractive to minors.
“We’re not eliminating vaping, but we’re eliminating flavors,” Health Minister Christian Dubé told Radio-Canada in an interview. “There will only be the taste of nicotine and all other flavors will be prohibited.”
The minister responsible for sports, Isabelle Charest, said the changes are about keeping “extremely harmful” products out of the reach of minors, according to CBC.
“They start to vape because they find it fun or attractive to have a vape pen that tastes like strawberries,” she said, adding that sweet-flavored products make up 90 percent of what minors vape, with only the remaining 10 percent choosing tobacco-flavored products.
The draft regulations also include proposals to limit the maximum nicotine concentration in vaping products to 20 milligrams per milliliter, restrict vape tank and capsule capacity to two milliliters, and limit the maximum volume refill capacity of liquid cartridges to 30 milliliters.
Vaping products will be prohibited from resembling toys, food or taking other forms that might be attractive to minors.
The ministry also acknowledges the new rules will likely mean job losses and a drop in sales for companies primarily selling vaping products.
As part of the new regulations, there will be a 45-day public consultation period.
April 21, 2023
Cabbacis Patents Low-Nicotine Pods in Canada

A U.S. federally-licensed tobacco product manufacturer focused on harm reduction products announced today that the Canadian Intellectual Property Office (CIPO) has issued patents for its pods comprising blends of very-low-nicotine tobacco and hemp for use with electronic nicotine delivery systems (ENDS).
Canadian Patent No. 3,151,047 was issued to Cabbacis and includes 27 claims which will expire on September 10, 2040. Earlier in 2022, CIPO also issued Patent No. 3,107,796 to Cabbacis for cigarettes comprising blends of very-low-nicotine tobacco and hemp.
“I am pleased that both types of our products are now patented in Canada which is one of our early target countries for commercialization,” said Joseph Pandolfino, founder and president of Cabbacis.
Credit: Feng Yu
Primary applications of the company’s very-low-nicotine cigarettes and vaping pods in development comprising blends of very-low-nicotine tobacco and hemp are to assist smokers of conventional cigarettes to smoke less, transition to less harmful tobacco or nicotine products, or quit nicotine use altogether, according to a press release.
Cabbacis’ patent portfolio includes 25 issued patents and various pending patent applications across the United States, Europe, China, Japan, South Korea, Canada, Australia, New Zealand, Mexico, Brazil and other countries. The company holds six U.S. patents.
December 29, 2022
Lawyer: ‘Cloudy Logic’ Behind Canada’s Vape Tax

Photo: Roman R
Canada is toughening up its regulatory regime over the manufacture and sale of vaping products.
As of Oct. 1, manufacturers and importers must be licensed or registered with the Canada Revenue Agency, must label their product with a vaping excise stamp, and pay an excise duty. Oct. 1 to Dec. 31 will be a transition period, after which retail stores can only sell stamped vaping products. These changes came from amendments to the Excise Act, 2001 and its regulations under the 2022 federal budget.
For taxation purposes, the changes mean that the feds effectively treat vaping products like tobacco products, says Robert Kreklewetz, an indirect tax, customs and trade lawyer at Millar Kreklewetz LLP.
A 20-pack of cigarettes is subject to $2.91 of federal excise duties, while the “roughly equivalent” amount of vaping liquid, two millilitres, attracts a duty of $1. He adds that this applies to liquid that does not contain nicotine.
“When vaping first came out, much like any new technology, the government was a little slow to react and slow to act,” says Kreklewetz. “It was a bit of a wild west situation in terms of how they were regulated from a product perspective and a wild west situation in how they were regulated from a taxation perspective. No special taxes, other than maybe our federal value added tax, would have applied – as it would to any other goods. But there were no special excise duties, and certainly no cigarette system in place for vapes. That’s all changed now.”
Canada also regulates vaping products through the Tobacco and Vaping Products Act, as well as the Food and Drugs Act, and has regulations restricting nicotine concentration and making rules for packaging and labelling.
Tax policy is usually aligned with public policy, and to attach excise taxes – sin taxes – to vapes, when they are a less harmful alternative to smoking, will provide less of an incentive for smokers to switch, says Kreklewetz.
“If you were looking at vapes as a way to get current smokers off of smoking and on to an alternative consumption of nicotine… every dollar that you put into tax on vaping is just a financial disincentive to getting off smoking,” says Kreklewetz. “If it costs me as much to vape as it does to smoke, why would I make the change?”
“That’s the cloudy logic that I see in the new taxation system,” he says. “The way the federal government is working these days, it’s running out of new sources of revenue. So, one might look at the vaping taxes as more of a tax grab than good public policy.”
November 8, 2022
British Columbia, Juul Labs Litigation to Proceed

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The Supreme Court of British Columbia has dismissed an application from Altria Group to stay or dismiss proceedings against the company in a class action against Juul Labs, reports The Lawyer’s Daily. Altria owns 35 percent of Juul.
The claim alleges that Altria conspired with Juul in the sale of nicotine vaping devices, to youth in particular, with the goal “to convert them into smokers” in part through nicotine addiction.
The class action was initially filed in September 2019, shortly after Health Canada issued an advisory for vapers to “monitor themselves for symptoms of pulmonary illness … and to seek medical attention promptly if they have concerns about their health.”
“This is an important decision that ensures that Canadians are able to sue all the parties that they allege have harmed them,” said Daniel Bach, a partner in Siskinds, about the Supreme Court decision. “We look forward to litigating these issues against Altria on the merits.”
Juul has been pummeled by lawsuits and mounting restrictions on the production and sale of vaping products in recent years. The e-cigarette maker has suffered financially as a result.
Since 2019, Juul has halted all U.S. advertising, discontinued most of its flavors and attempted to rebrand itself as a product for older smokers who seek alternatives to cigarettes.
According to press reports, Juul has been preparing to file for Chapter 11 bankruptcy.
This was the second appeal by Altria in this class action that British Columbia courts have dismissed. In October 2021, the B.C. Court of Appeal dismissed an appeal to an order allowing cross-examination on its affidavits in the company’s jurisdictional challenge.
October 19, 2022
Kaival Launches PMI’s Veeba Disposable in Canada

Credit: Kristina Blokhin
Kaival Brands Innovations Group (KBI) announced the launch of Philip Morris International’s Veeba disposable e-cigarette in Canada.
In June, Kaival and PMI signed an agreement for the development and distribution of electronic nicotine-delivery system products in markets outside of the U.S.
“The agreement with Philip Morris Products was a remarkable accomplishment for the company, and now we have advanced to the next phase of international distribution with the actual launch of their custom branded product, Veeba,” said Eric Mosser, president and chief operating officer of Kaival Brands, in a statement.
“We are excited to support PMI’s efforts to provide a range of alternatives compared to cigarettes. The commercialization of Veeba complements PMI’s already strong smoke-free portfolio, providing adult smokers with an even broader range of usage, taste, price and technology options.”
The agreement licenses PMI to manufacture, promote, sell and distribute the Bidi Stick and any newly developed devices in certain markets outside of the United States, with potential royalties owed to KBI.
July 26, 2022
Canada Proposes New Vapor Disclosure Requirements

Photo: DD Images
The Canadian government wants vapor product manufacturers to disclose information about their sales and the ingredients used in their products.
On June 17, Minister of Mental Health and Addictions and Associate Minister of Health Carolyn Bennett announced the launch of a 45-day public consultation period on the proposed rules.
“Canada’s vaping market is evolving rapidly,” Health Canada wrote in a press release. “A large number of vaping substances are available across the country and new formulations are frequently introduced with new flavors. Health Canada is restricted in its capacity to properly track market trends due to limited access to information on vaping products sales and composition.”
According to Health Canada, the proposed regulations are the first step of a gradual approach to introducing vaping product reporting requirements. Health Canada is considering additional reporting requirements for implementation in the future similar to those already in place for tobacco products. This could include reporting on information related to research and development as well as promotional activities. It could also include disclosing some information to the public which would increase industry transparency.
“As the vaping market continues to evolve rapidly and entice Canadians, including young people, to use vaping products, we are taking action to better protect everyone in Canada by more fully understanding the impact of these products on their health,” said Bennett. “The proposed regulations will help us educate Canadians about the health harms while furthering research aimed at reducing the amount of people impacted by harms related to tobacco and vaping product use across the country.”
The proposed regulations have been published in the Canada Gazette. Stakeholders can submit comments to mailto:mpregs@hc-sc.gc.ca until Aug. 2.
June 21, 2022
Canada Proposes First Federal Nicotine-Only Vape Tax

The Canadian government has proposed the country’s first federal vape tax, which would take effect Oct. 1 if passed, according to Vaping360.
The tax applies only to nicotine-containing products, including pod-style and cartridge-style refills, disposable vapes and bottled e-liquids as well as nicotine base for DIY liquids. It does not apply to hardware that is sold without e-liquids. The tax also includes an option for Canadian provinces to add on their own, equally large, taxes.
Vaping products would see a tax of CAD1 ($0.97) per 2 mL for the first 10 mL of e-liquid in any sealed container and $1 per 10 mL for additional liquid in the same container. Sealed pods would be taxed separately at a minimum of $1 per pod.
Retailers would have until Jan. 1, 2023, to sell any untaxed stock they still have on Oct. 1 when the law would go into effect.
The tax is awaiting a vote by Parliament’s House of Commons, which is expected to take place either at the end of April or beginning of May.
April 8, 2022