Tag: news

  • Vape Mail Ban Imminent, No Confirmed Date

    Vape Mail Ban Imminent, No Confirmed Date

    mailboxes

    Today could be the last day businesses can mail vapor products to consumers through the United States Postal Service (USPS). However, nothing is official just yet. The mail ban was predicted by many in the industry to go into effect on April 27, 2021, but the final rule must still be published in the Federal Register. Currently, effective March 28th, 2021, recipients of all vaping product(s) purchased online are required, by law, to present ID and sign for their delivery.

    Credit: Sam Larussa

    On April 19, the USPS issued guidance for exemptions to the requirements for mailing all vapor products, including cannabis. This was in response to the U.S. Congress placing electronic nicotine-delivery systems (ENDS) under the stringent mailing requirements of the Prevent All Cigarette Trafficking (PACT) Act. That guidance only references that a rule could be published at any time and the ban on mailing vaping products to consumers would take effect immediately after the rule is published.

    “A forthcoming final rule will determine whether electronic nicotine-delivery systems (ENDS) may continue to be mailed pursuant to certain statutory exceptions that are currently administered through an application process,” the guidance states. “Until the final rule is issued, ENDS are not subject to the PACT Act …”

    Many businesses ended shipping to consumers on or before April 26, a day before the assumed effective date of the USPS rules. The comment period closed March 22 and the USPS stated that it had received “numerous comments” pertaining to its proposed ENDS mailing rules. An e-mail to USPS media relations did not receive a response by this writing.

    The USPS is required to use a definition of ENDS so broadly that it can be interpreted to include and inhalable electronic delivery system for any product. These means restrictions also apply to ENDS products such as: “an e-cigarette; an e-hookah; an e-cigar; a vape pen; an advanced refillable personal vaporizer; an electronic pipe; and any component, liquid, part, or accessory of a device described [ENDS], without regard to whether the component, liquid, part, or accessory is sold separately from the device,” according to the law.

    Violators are no longer dealing only with the U.S. Food and Drug Administration (FDA). The PACT Act requires companies to now register with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as the enforcement agency for violating PACT Act requirements. Companies shipping vapor products must also file monthly reports with state tobacco tax administrators and retain federal, state and local compliance records that should be available upon request.

    Unless changes are made, an exemption must be made for companies mailing cannabis vape products, such as CBD vape pens, as well as other potentially exempt mailings such as business-to-business mailings or research. Companies must create a list of all businesses that would receive mail and a list of detailed information on the business and products being shipped. The USPS also says it is unsure if normal PACT Act exemptions will apply to ENDS product. It will also not process any exemption requests until after the final rule is published.

    Credit: blr60

    “If any of the relevant exceptions are ultimately made available for [electronic nicotine delivery systems (ENDS)], then, given the highly decentralized nature of the ENDS industry relative to the industries historically covered by the PACT Act, the Postal Service anticipates receiving ENDS-related exception applications at a rate several orders of magnitude above the historic norm,” the guidance reads. “The Postal Service has not yet determined whether and to what extent those exceptions will be extended to ENDS. Early acceptance of applications would pose significant administrative challenges for the very Postal Service personnel who are developing the final rule amid substantial public comment under a tight timeframe.”

    For hemp and CBD products with a THC concentration not exceeding 0.3 percent, the USPS states that mailers must retain, and prepare to make available upon request, “records establishing compliance with all applicable federal, state, and local laws pertaining to hemp production, processing, distribution, and sales, including the Agricultural Act of 2014 and the Agricultural Improvement Act of 2018.” These records may include laboratory test results, licenses, and compliance reports.

    The repercussions of the USPS vapor mail ban on the vaping industry will not be realized for some time. While the PACT Act requirements have forced many businesses to close, the vapor industry is used to dealing with a great amount of uncertainty. It does not seem like that is going to change any time soon.

  • Federal E-Cigarette Tax Bill Introduced in U.S. Senate

    Federal E-Cigarette Tax Bill Introduced in U.S. Senate

    A new bill that would establish a federal tax on vaping products has been introduced in the U.S. Senate. Senate Majority Whip Dick Durbin, Senate Finance Committee Chair Ron Wyden (D-OR), Representative Raja Krishnamoorthi (IL-D-08) and seven other Senate Democrats have introduced the bicameral Tobacco Tax Equity Act of 2021, which would also increase the traditional tobacco tax rate for the first time in a decade.

    Credit: Steve Buissine

    “Tobacco-related disease accounts for one out of every five deaths in America, and I know that story firsthand,” said Durbin, according to CStoreDecisions. “Data shows that the most effective strategy to prevent children from starting this deadly habit is to price it out of their range. This bill would help reduce tobacco and e-cigarette use by ending loopholes that the industry has exploited to target our children. If America can kick its nicotine addiction it would go a long way to improving our public health for generations to come.”

    Joining Durbin and Wyden in introducing the bill in the Senate includes U.S. Senators Patty Murray (D-WA), Sherrod Brown (D-OH), Jack Reed (D-RI), Jeff Merkley (D-OR), Richard Blumenthal (D-CT), Ed Markey (D-MA), and Mazie Hirono (D-HI).

    The Tobacco Tax Equity Act of 2021 aims to “close tax code loopholes for tobacco products by increasing the federal tax rate on cigarettes, pegging it to inflation to ensure it remains an effective public health tool, and setting the federal tax rate for all other tobacco products at this same level.”

    “Loopholes in our tax code continue to favor big tobacco while the American public, especially our youth, pays the price,” said Krishnamoorthi. “The Tobacco Tax Equity Act increases taxes on cigarettes and finally imposes taxes on the e-cigarettes hooking our children on nicotine, which would generate billions of dollars in federal revenue. As a father of a high schooler and middle schooler, I’m determined to make sure we end the youth nicotine and vaping epidemic.”

    The Tobacco Tax Equity Act of 2021 is endorsed by the Campaign for Tobacco-Free Kids, American Academy of Pediatrics American Lung Association, American Heart Association, American Cancer Society Cancer Action Network, American Public Health Association, National Association of County and City Health Officials, Trust for America’s Health and American Thoracic Society.

  • Vaping Industry Gets Surveyed About Logistics

    Vaping Industry Gets Surveyed About Logistics

    Photo: Andrey Popov

    The U.K. Vaping Industry Association (UKVIA) has launched an online logistics survey for the vaping industry.

    This action follows the decision of several delivery companies to stop carrying shipments of vaping products.

    Reports have involved leading providers such as DHL, UPS and FedEx, resulting in varying degrees of disruption to deliveries in recent months. The UKVIA is keen to learn if any disruption is affecting products imported from countries within the European Union or if products imported from China and the USA are also being held up.

    “The UKVIA is extremely concerned to hear of any disruption to deliveries of vaping products experienced by our members or any other businesses in the sector,” said John Dunne, director general of the UKVIA.

    “We will be closely looking into the response to this survey, to gauge the severity of the problems faced by businesses. The UKVIA will then be in a better position to take up these concerns on behalf of our members and the wider industry. I would encourage everyone eligible to take part in the survey or to get in contact with the UKVIA directly to flag up any individual logistics issues”

    The survey is at www.surveymonkey.co.uk/r/2YYZYJW.

  • Altria, Juul Likely to Face Suit Over $13 Billion Deal

    Altria, Juul Likely to Face Suit Over $13 Billion Deal

    Photo: jessica45 | Pixabay

    Altria Group and Juul Labs will likely face a proposed antitrust action seeking to unwind a $12.8 billion deal that gave the tobacco giant a 35 percent stake in the vapor company, reports Bloomberg Law, citing a “tentative” ruling by a federal judge in San Francisco.

    Judge William H. Orrick indicated Wednesday that he’s inclined to let most of the lawsuit move forward in the U.S. District Court for the Northern District of California, where it was consolidated after dozens of antitrust plaintiffs sued over deal clauses calling for Altria’s exit from the vaping market.

    The Federal Trade Commission has also sued over the Altria-Juul transaction.

  • 25% Wholesale Vapor Tax Clears Indiana Senate Hurdle

    25% Wholesale Vapor Tax Clears Indiana Senate Hurdle

    A bill in Indiana that will bring new taxes on vaping as well as a broad framework for disbursing future opioid litigation settlement cash is expected to be signed into law by Governor Eric Holcomb, today. It’s Indiana’s first-ever tax on e-cigarettes.

    Credit: Adobe Stock / Luzitanija

     

    The tax, which will take effect July 1, 2022, is split between wholesale and retail, with closed-system products like prefilled pods assessed 25 percent of the wholesale cost, and open-system products like bottled e-liquid being taxed at 15 percent of the retail price (a sales tax).

    A previous version proposed a 10 cent-per-milliliter tax on vaping fluid and an additional 10 percent percent excise tax on e-cigarettes and vaping products.

    Health advocates say the plan meets their goal of a tax rate comparable to the rate on traditional
    cigarettes, according to wibc.com. Indiana State Medical Association president Roberto Darroca says doctors are
    particularly concerned about discouraging teenagers from taking up vaping so they don’t get a
    taste for nicotine and move on to traditional cigarettes.

  • Alabama Passes Vape Bill With Heavy Restrictions

    Alabama Passes Vape Bill With Heavy Restrictions

    The Alabama House of Representatives passed a vaping bill that will prevent vape manufactures and retailers from using advertising techniques designed to appeal to young people, such as incorporating characters from comic books in ad campaigns. It would also prevent makers of vape pods and cartridges from claiming the taste of their product resembled “candies, cakes, or other sugary treats.”

    Credit: David Mark

    The legislation, HB 273, also changes Alabama’s law to mirror the federally established age to purchase vaping products, 21. The bill would require the Alabama Department of Revenue to build and maintain a directory of businesses that sell and manufacture vape cartridges, e-liquids and any alternative nicotine product in Alabama. Furthermore, it would require the relevant businesses to pay for certification in the directory.

    Selling vape cartridges and e-cigarettes in vending machines would be banned under HB 273. Manufacturers and retailers of nicotine products like vapes and e-cigarettes will also be required to post notices about the dangers of their usage, such as exposure to toxic metals. All locations selling vapes and any nicotine delivery system would be required to post a prominent sign near where customers check out that displays 21 as the legal age to buy nicotine products.

    The bill is sponsored by Rep. Barbara Drummond (D-Mobile). Two Republican members, Reps. Debbie Wood (R-Valley) and David Faulkner (R-Mountain Brook), are among the cosponsors of the legislation. It passed the House on a bipartisan vote of 74-18 with two abstentions. They say the bill is designed to reduce the use of e-cigarettes and vaporizers among young people.

    “My issue has always been to safeguard the welfare of young people,” Drummond said on the floor about her proposed law, according to the Yellow Hammer News.

    Each business entity that deals with vaping would have to pay the state an initial $2,000 certification fee, and each subsequent year would have to pay a $500 renewal for continued certification. Funds from the fees would go to implementing and maintaining the directory.

    “There are some bad actors out there selling this stuff illegally right now,” noted Drummond about the need for a registry, further explaining that the registry makes the job of law enforcement easier.

  • Forest to Host April 28 Webinar on Vaping

    Forest to Host April 28 Webinar on Vaping

    Simon Clark

    To mark the last week of VApril, the U.K.’s annual vaping awareness month now in its fourth year, the smokers’ lobby group Forest is hosting a webinar on April 28 to discuss “Should smokers switch to vaping?”

    “E-cigarettes have been a mainstream consumer product for the best part of a decade and vaping is credited with encouraging millions of smokers to switch to what evidence suggests is a significantly reduced risk product,” says Forest director Simon Clark

    “Despite that, millions more seem resistant to switching and the latest figures suggest that the number of vapers in the U.K. may have fallen from a peak of 3.6 million to 3 million. The question is, why?”

    Speakers at the virtual meeting include John Dunne, CEO of the U.K. Vaping Industry Association; Joe Dunne, spokesperson for Respect Vapers in Ireland; and Daniel Pryor, head of programs at the Adam Smith Institute think tank.

    “Confirmed smokers are often excluded from public debates about vaping and smoking cessation,” says Clark. “It’s misguided because their views are essential to understanding why more smokers don’t want to quit or switch.

    Confirmed smokers are often excluded from public debates about vaping and smoking cessation.

    Simon Clark, director, Forest

    “We believe adults should have the freedom to make informed choices, so this is an opportunity for confirmed smokers to learn more about reduced-risk products, and for vaping advocates to understand why many smokers still prefer combustible tobacco and to respect that choice.”

    Forest’s webinar will take place April 28, 18:00-19:00 U.K. time.

    For further information and to register click here.

  • Study: Impact of HNB No Less Harmful Than Cigarettes

    Study: Impact of HNB No Less Harmful Than Cigarettes

    Kuznietsov Dmitriy

    The impact on lung cells of heat-not-burn (HNB) tobacco products may be no less harmful than that of conventional cigarettes, according to the authors of a small comparative study published by Thorax.

    HNB products contain nicotine and tobacco but have been marketed by the tobacco industry as a less harmful alternative to conventional cigarettes on the grounds that they don’t produce specific harmful chemicals that are released when tobacco burns.

    Smoking heightens the risk of coronary heart disease, stroke, peripheral artery disease, and abdominal aortic aneurysm, because it has a role in all stages of artery hardening and blockage. And it causes emphysema and pulmonary hypertension, because it contributes to the damage of blood vessels in the lungs.

    Specifically, it contributes to endothelial dysfunction–whereby the lining of small and large blood vessels becomes abnormal, causing arteries to constrict instead of dilating, or blood vessels to become more inflamed; oxidative stress—an excess of harmful cellular by-products; platelet activation–creation of ‘sticky’ blood; and plaque development that can block arteries.

    The researchers wanted to find out if these effects could also be observed in people who used HNB products.

    So they compared endothelial dysfunction, oxidative stress and platelet activation in 20 non-smokers (average age 28), 20 long term conventional cigarette smokers (average age 27), and 20 long-term users of HNB products (average age 33).

    The conventional smokers had been puffing away for an average of 3.5 years, getting through 13 sticks a day; the HNB users had been getting through around 11 products every day for an average of 5 years.

    The findings showed that compared with not smoking, long term use of HNB products was associated with reduced endothelial function and increased oxidative stress and platelet activation.

    And there were no significant differences between conventional cigarette smokers and users of HNB products.

    This is an observational study, so it can’t establish cause. And the researchers acknowledge several limitations to their findings.

    These include the small numbers of study participants involved, the lack of random allocation to each group, and the inability to confirm that a participant wasn’t a dual user of both conventional cigarettes and HNB products.

    If confirmed by other large studies, these findings could provide evidence to strongly discourage non-smokers to start using [HNB products].

    Lorenzo Loffredo et al.

    Nevertheless, they conclude: “If confirmed by other large studies, these findings could provide evidence to strongly discourage non-smokers to start using [HNB products] and to encourage [conventional cigarette] smokers to quit smoking.”In a second linked study, a team of researchers assessed whether the use of HNB products helped Japanese workers to give up tobacco for good.

    They offered a smoking cessation program to 158 users of conventional cigarettes (94) alone and/or HNB products (64) between November 2018 and April 2019.

    The workplace program included prescription varenicrine or nicotine replacement therapy (NRT), counselling, and information about stopping smoking.

    The quit rate was logged in August 2019, when 45 (29 percent) of the workers had successfully stopped using all tobacco products.

    Those who availed themselves of pharmacological support were more likely to quit than those who didn’t (67 percent vs 11 percent) as were those who received counseling (69 percent vs 21 percent).

    Analysis of the results showed that people who used varenicrine or NRT were three times more likely to stop smoking tobacco than those who didn’t.

    But those who either used HNB products alone or in addition to conventional cigarettes (dual users) were 23 percent less likely than exclusive cigarette smokers to give up tobacco altogether, after accounting for age, tobacco dependence, previous quit attempts and use of pharmacological support.

    This too is an observational study, and the researchers acknowledge that their study was small and restricted to healthy men in just one workplace. Smoking status was also self-reported and assessed at a single time point, and successful quitters weren’t asked how long they had stopped using tobacco.

    But they point out that those who used HNB products in their study did so because they thought they were less harmful than conventional cigarettes.

    “It is possible that the rhetorical phrases by tobacco industries attract and make consumers misunderstand that changing from cigarettes to [HNB products] can provide a healthier environment for themselves and their surroundings,” they suggest.

    “Although [HNB products] are misunderstood to be less harmful, they expose users and bystanders to toxicants, and the evidence does not show that [they] will reduce tobacco-related diseases,” they add.

    “Given that [HNB products] undermine cessation among smokers without providing health benefits, [they] should not be recommended for any purpose,” they conclude.

    In a linked editorial, covering both research papers, Professor Irina Petrache of National Jewish Health, Denver, Colorado, and Esther de Boer of University of Colorado, agree.

    “[Both] reports provide impetus to conduct larger randomized validating studies and to assess the impact of [HNB products] on additional health parameters. Their work enriches the mounting evidence that [HNB products] are not safer than [conventional cigarettes], suggesting that any tobacco use should be strongly discouraged,” they write.

  • Charlie’s Pachamama Disposables Sell Out in 21 Days

    Charlie’s Pachamama Disposables Sell Out in 21 Days

    Charlie’s Holdings, parent to the Charlie’s Chalk Dust and Pachamama brands of vapor and CBD products, announced today that its Pachamama Disposables e-cigarettes are the fastest selling new product in the company’s history. Introduced to the U.S. market last month,  the company says it sold out of its entire initial stock in fewer than 21 days, according to a press release.

    “It is estimated that more than 20 percent of the world’s population consumes nicotine in some format. As a company, we believe that our new technologies and products can provide adult consumers with a better, more responsible and therefore more enjoyable means of experiencing nicotine,,” Brandon Stump, CEO of Charlie’s Holdings, said. “Now that we have launched Pachamama Disposables in the United States, later this year our distribution will expand into more than 75 international markets where we expect to introduce millions of adult consumers to the extraordinary Pachamama sensory experience. We are very excited about what this launch – and the new $600 million market opportunity – will mean for our customers and our company.”

    Market share data shows that disposable e-cigarettes already represent a $600 million – and growing – market in the $7 billion total U.S. e-cigarette market, according to the release. The company launched the disposable product to meet the needs of consumers by providing an “adult-only, recreational use, consumer product that is simple to use, discreet, and immensely satisfying.”

    Earlier this month, Charlie’s Holdings announced that it has closed a $3 million capital raise through the private sale of 351,669,883 shares of common stock to the company’s founders, Brandon Stump, CEO, and Ryan Stump, COO, according to a press release. The company intends to use the proceeds from the offering to drive substantial future growth, facilitate new product launches, increase working capital, retire outstanding debt, and for other general corporate purposes.

    David Allen, CFO said the proceeds from the private placement will strengthen the company’s balance sheet, accelerate European growth, allow for expansion into the Middle East, and facilitate the company reaching several important near-term milestones, including the FDA’s anticipated announcement of Charlie’s successful PMTA.

  • Indiana Senate to Vote on 15% E-liquid Tax Today

    Indiana Senate to Vote on 15% E-liquid Tax Today

    The budget deal awaiting a final vote in Indiana today includes the state’s first-ever tax on e-cigarettes. Both the House and Senate had floated an extra 10 percent sales tax on e-liquids, but the final bill jacks that up to 15 percent. Prepackaged closed-pod cartridges like Juul will be taxed at 25 percent at the wholesale level.

    Credit: Ken Shelton

    Health advocates say the plan meets their goal of a tax rate comparable to the rate on traditional
    cigarettes, according to WIBC.com. Indiana State Medical Association president Roberto Darroca says doctors are
    particularly concerned about discouraging teenagers from taking up vaping so they don’t get a
    taste for nicotine and move on to traditional cigarettes.

    The Senate had flirted with the idea of taxing closed-pod cartridges based on the amount of liquid
    they contained. Darroca says that would have been a mistake, and says negotiators did the right
    thing in basing the taxes on price. Because pod cartridges contain a fraction of the liquid sold for
    open systems, Darroca says a volume tax would have blown up the goal of making the vaping tax
    comparable to taxes on traditional tobacco products.

    The Indiana Chamber had gone farther, blasting the volume-based tax as worse than doing
    nothing. President Kevin Brinegar says the Chamber supports the final version as a “big step” for
    public health, though he and Darroca both say they’re disappointed the Senate blocked a
    proposed cigarette tax hike.