The U.S. International Trade Commission (ITC) has issued a general exclusion order that bans the importation of any unauthorized cartridges compatible with the Juul vaping system that infringe Juul Labs’ patented product designs, including compatible flavored pods and refillable pods.
This ruling follows a filing by Juul Labs submitted to the ITC on July 10, 2020, that sought a general exclusion order directed at all importers of unauthorized cartridges that copy Juul Labs’ patented pod designs without authorization.
“Today’s ITC ruling represents a major victory against manufacturers of illicit vapor products who seek to bypass regulations and undermine efforts to create a more responsible marketplace for the category,” said Wayne Sobon, vice president, intellectual property at Juul Labs, in a statement.
“In addition to targeting the importation of all infringing products, regardless of the brand, this sweeping action will provide the additional public benefit of helping rid the market of unauthorized Juul-compatible products that can be modified by the user, such as empty and refillable pods.”
The latest version of Juul pods are superior to there predecessors, according to new research. Juul Labs began marketing in the European Union “new technology” Juul pods that incorporated a new wick that the company claimed provided “more satisfaction.” The wick system, Juul stated, would deliver more consistent voltage and provide a better experience to users.
Credit: Juul Labs
In new study, published in BMJ, the researchers compared design and materials of construction, electrical characteristics, liquid composition and nicotine and carbonyl emissions of new technology Juul pods to their predecessors. The study concluded that the pods were “consistent with manufacturer’s claims, we found that the new pods incorporated a different wicking material. However, we also found that the new pod design resulted in 50 percent greater nicotine emissions per puff than its predecessor, despite exhibiting unchanged liquid composition, device geometry and heating coil resistance.”
The study also found that when connected to the new technology pods, the Juul power unit delivered a more consistent voltage to the heating coil. This suggests that the new coil-wick system resulted in better surface contact between the liquid and the temperature-regulated heating coil. “Total carbonyl emissions did not differ across pod generations,” the report states. “That nicotine yields can be greatly altered with a simple substitution of wick material underscores the fragility of regulatory approaches that center on product design rather than product performance specifications.”
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.
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.”
