Tag: Federal Trade Comission

U.S. Vape Market Topped $2.67 Billion in 2021

Photo: auremar
The combined sales of cartridge-based and disposable e-cigarette products to U.S. consumers by nine leading manufacturers increased by approximately $370 million between 2020 and 2021, while the total topped $2.67 billion, according to the Federal Trade Commission’s (FTC) third report on e-cigarette sales and advertising in the United States, which was released on April 3, 2024. E-cigarette companies also spent $90.6 million more advertising and promoting their products in 2021 than in 2020.
The FTC report examines two main types of e-cigarettes. Some have rechargeable batteries and changeable prefilled cartridges; others are disposable after running out of charge or e-liquid. Reported sales of cartridge products increased from $2.13 billion in 2020 to $2.5 billion in 2021; sales of disposable, non-refillable e-cigarette products increased from $261.9 million in 2020 to $267.1 million in 2021.
The 2021 report also provides details on some characteristics of e-cigarette products, including flavors and nicotine concentration, as well as the bundling of the components in cartridge systems. The data shows that in 2021, 69.2 percent of e-cigarette cartridges either sold or given away contained menthol-flavored e-liquids, and the rest were tobacco-flavored.
Disposable e-cigarettes are not covered by the flavor restrictions imposed by the Food and Drug Administration. In 2021 “other” flavored devices made up 71 percent of all disposable devices sold or given away, with the most-popular subcategories being fruit-flavored and fruit & menthol/mint flavored products. These two subcategories alone made up more than half of all disposable e-cigarette devices sold or given away in 2021.
According to the report, expenditures for the advertising and promotion of e-cigarettes increased from $768.8 million in 2020 to $859.4 million in 2021, with the three largest spending categories being price discounts, promotional allowances paid to wholesalers, and point-of-sale advertising. Together, these three categories accounted for almost two thirds of expenditures in 2021.
Finally, the report discusses steps that e-cigarette companies took in 2021 to deter or prevent underage consumers from visiting their websites, signing up for mailing lists and loyalty programs, or buying e-cigarette products online. These steps include the use of online self-certification to verify users were at least 21 years old and following state laws requiring an adult signature upon delivery of e-cigarette products.
April 5, 2024
FTC Report Shows Surge in Sales of Disposable Vapes
Credit: Andriy Blokhin
The Federal Trade Commission’s second report on e-cigarette sales and advertising across the U.S. shows sales of flavored disposable e-cigarettes and menthol e-cigarette cartridges surging dramatically in 2020.
The coincides with a federal ban on the flavored cartridges for closed systems. Regulators state that closed systems were popular with youth, so the FTC report suggests that youth e-cigarette use has shifted to disposable flavored products rather than declined.
The report also found that the distribution of free and discounted e-cigarettes reached record highs.
“This report shows that youth are still at risk from flavored or deeply discounted e-cigarettes,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “Marketers of e-cigarettes have proven skillful at evading FDA regulation and hooking youth on addictive products.”
The FTC has been reporting on tobacco sales annually since 1967 and smokeless tobacco sales since 1987. Last year, the agency expanded its studies of industry and published its first-ever report on e-cigarettes.
This year’s e-cigarette report covers sales and advertising data from 2019 and 2020, a period in which the U.S. Food and Drug Administration published an enforcement policy banning the sale of flavored e-cigarette cartridges other than menthol.
Overall, the report found that total e-cigarette sales, which had increased from $304.2 million in 2015 to $2.046 billion in 2018, grew to $2.703 billion in 2019, but then declined to $2.24 billion in 2020. The FTC report notes that the 2020 decline may not represent the market given major industry shifts. Key findings in the report include:
Significant shift to flavored disposable e-cigarettes: Publicly available sources indicate that the sale of disposable e-cigarettes – which are exempt from the FDA’s 2020 policy – increased substantially, with “other” flavored disposable products making up 77.6 percent of all disposables sold in December 2020. The FTC’s data did not show an increase in disposable sales. However, FTC’s data likely does not represent an accurate picture of the market for disposable e-cigarettes. Only two of the five companies submitting data for 2019-20 continued to market disposable e-cigarettes in 2020, and those that did provided more limited offerings. In order to improve the representativeness of its industry sales data for future FTC reports, the FTC recently sent orders to four additional e-cigarette companies.
Major increase in menthol cartridge sales: Similarly, the report found that the sale of the remaining non-FDA-banned flavored cartridge, menthol, increased significantly, to 63.5 percent of all cartridges sold in 2020.
Record high e-cigarette discounting: The data also reveal that price discounting for e-cigarettes reached a record high of $182.3 million in 2019, and, although it decreased slightly in 2020, such discounting still represented the largest category of ad expenditures by e-cigarette manufacturers.
Doubling of nearly free e-cigarette samples: The data collected for 2019-20 suggest that spending on the sampling and distribution of free and deeply price-discounted e-cigarettes more than doubled in just two years, making it the second-largest spending category in 2020. This occurred because, after the FDA banned tobacco product sampling in 2016 to limit youth access, some companies began offering e-cigarettes for $1 (or even less) in an apparent attempt to get around the ban.
“This report shows that partial bans on certain types of flavors for certain types of e-cigarettes are unlikely to be successful in achieving a reduction in youth addiction to nicotine via e-cigarette usage,” the FTC wrote in statement.
The Commission vote approving the FTC’s E-Cigarette Report and related data tables for 2019-20 was 5-0.
August 31, 2022
FTC Reports Six-Fold Rise in E-Cigarette Sales

Photo: klepach
The Federal Trade Commission’s (FTC) first-ever report on e-cigarette products reveals surging e-cigarette sales and advertising.
The report, which is based on industry data provided for the years 2015 to 2018, shows that total e-cigarette sales, including both disposable units and those using changeable cartridges, increased more than sixfold from $304.2 million to $2.06 billion in those three years alone. The sales of fruit and other flavored e-cigarette cartridges preferred by youth increased sevenfold over that time, and nicotine concentrations in disposable e-cigarette products also increased.
“The commission’s inaugural e-cigarette report paints a disturbing picture, especially with e-cigarettes driving an unprecedented increase in youth use of tobacco products,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection, in a statement. “The data show that this increase coincided with dramatic spikes in the market share of flavored products, higher concentrations of nicotine and an industry attempt to evade a ban on free sampling.”
March 21, 2022
FTC Complaint Against Altria’s Investment in Juul Dismissed

Photo: Aerial Mike
A U.S. Administrative Law Judge has dismissed the Federal Trade Commission’s (FTC) claims against Altria and Juul Labs arising out of Altria’s 2018 minority investment in Juul. Following a three-week trial, the judge found that the evidence failed to sustain the alleged violations.
The judge’s decision is subject to review by the FTC. Any decision by the FTC may be appealed to any U.S. Court of Appeals.
“We are pleased with this decision and have said all along that our minority investment in JUUL does not harm competition and does not violate the antitrust laws,” said Murray Garnick, executive vice president and general counsel of Altria, in a statement
In April 2020, the FTC issued an administrative complaint against Altria and Juul alleging that Altria’s 35 percent investment in Juul and the associated agreements constitute an unreasonable restraint of trade in violation of Section 1 of the Sherman Antitrust Act of 1890 and Section 5 of the Federal Trade Commission Act of 1914, and substantially lessened competition in violation of Section 7 of the Clayton Antitrust Act.
A public version of the decision is expected to be made available late this month.
February 15, 2022