Police in Thailand seized vaping devices and accessories valued at over 80 million baht ($2.294 million) during police raids in Bangkok and Nakhon Pathom on Saturday.
Cyber Crime Investigation Bureau deputy commissioner Maj-General Pairoj Sukruaythanachote told a press conference that three locations, including a warehouse, were searched in Nakhon Pathom’s Mueang district.
He said two people were arrested and nearly 50 million baht worth of vaping devices and accessories was confiscated during the raids, according to Nation Thailand.
In Bangkok, police searched a condominium in Ratchathewi district where another nearly 50 million baht worth of vaping devices and accessories was confiscated, Pairoj said, adding that a suspect was arrested during the raid.
Those arrested were charged with importing prohibited items, violating the Consumer Protection Act and the Export-Import Act. Further investigations are underway to find other people involved, police said.
The company reported net revenues of RMB340 million ($49.3 million) in the fourth quarter of 2022, down from RMB1.9 billion in the same period of 2021. Its GAAP net loss was RMB225.1 million, compared with GAAP net income of RMB494.4 million in the comparable 2021 quarter.
For the full fiscal year, net revenues declined to RMB5.33 billion in 2022 from RMB8.52 billion in 2021. U.S. GAAP net income was RMB1.41 billion, down from RMB2.03 billion in the prior year.
“2022 was a year full of unprecedented challenges,” said RLX Technology co-founder, chairperson and CEO Ying Wang in a statement. “A combination of Covid-related disruptions and the introduction of a substantial package of industry regulations and policy updates throughout the year impacted the e-vapor sector and our operations.
“We retained our core strategy in this volatile operating environment while proactively adapting our business to the new regulations. In the fourth quarter, we continued to invest in R&D and product innovation and development, offering superior products to adult smokers. We believe our core competencies will enable us to attract continued support from users.
“Looking ahead, given the benefits of the clearer regulatory framework and China’s reopening, we remain confident in the long-term growth of our industry. We are well-positioned to adapt to these shifting market forces and capture new opportunities while further deepening our commitment to honoring our social responsibilities.”
RLX Technology was particularly affected by the vast wave of coronavirus infections as China suddenly relaxed its zero-Covid policy toward the end of 2022. In addition, its gross margin in the fourth quarter suffered as a result of the imposition on Nov. 1, 2022, of a 36 percent excise tax on e-cigarettes in China.
“Despite the headwinds, we strove to improve operational efficiency to mitigate the adverse impact on our business,” said RLX Technology Chief Financial Officer Chao Lu. “As a result, we maintained a healthy level of profitability during 2022. We believe our company’s resilience will enable us to overcome near-term obstacles, and we remain dedicated to creating long-term sustainable value for our stakeholders.”
The Queensland Parliament will hold an inquiry into the health risks, use, and prevalence of e-cigarettes, amid concerns that some vaping products marketed as “nicotine free” contain the addictive chemical.
Queensland laws allow the sale of nicotine-free vaping devices in tobacco shops. E-cigarettes containing nicotine are only available with a prescription, according to The Guardian.
But the state health minister, Yvette D’Ath, said on Sunday that “we know” that some products sold off the shelf in Queensland contain nicotine and other chemicals like nail polish remover.
She offered no evidence of or support for the claim.
The premier, Annastacia Palaszczuk, said the inquiry would examine measures to discourage children from vaping.
“Critically, we need to have greater knowledge about what vaping devices contain,” Palaszczuk said.
The parliament’s Health and Environment Committee will carry out the inquiry.
There is a flurry of flavor bans going on in Maine. In a unanimous vote by the town council, Bar Harbor has become the fifth town in the U.S. state to ban flavored tobacco products.
The new Bar Harbor ordinance takes effect June 1, 2023, and will end the sale of tobacco products with “any taste or smell relating to fruit, menthol, mint, wintergreen, chocolate, cocoa, vanilla, honey, or any candy, dessert, alcoholic beverage, herb or spice,” according to WMTW.
Legislation to create a statewide ban has been introduced in Augusta, which is expected to be taken up this session.
A new bill in the U.S. state of Indiana’s senate hopes to ban e-cigarettes and vapes inside public places.
Senate Bill 1561 has passed the senate executive committee and now heads to the full senate for further consideration.
The smoke-free Illinois act was passed in 2007. It prevents people from smoking within 15 feet of entrances and requires no smoking signs to be posted in public spaces, reports WCIA.
But since vaping has become popular, Sen. Julie Morrison wants to make sure e-cigarettes and vapes are included.
A doctor with OSF Healthcare says this could help prevent secondhand smoke from being in public air.
The governor of Indiana signed a bill last year that included provisions cutting the 25 percent tax that wholesalers were to be charged for closed-system vaping devices to 15 percent.
Vuse e-cigarettes continue to grab market share from Juul. The gap is growing in both monthly and yearly comparisons, according to the latest Nielsen convenience store report.
The R.J. Reynolds Vapor Co. brand’s market share rose from 41.5 percent in the previous report to 42.7 percent, compared with Juul declining from 26.4 percent to 25.6 percent.
Over the past 12 months, Vuse’s market share was 36.6 percent, compared with 29.5 percent for Juul. The latest Nielsen analysis of convenience-store data covers the four-week period ending Feb. 25.
On Friday, Altria Group Inc. announced that it had exchanged its 35 percent ownership stake in Juul Labs for a non-exclusive, irrevocable global license to certain of Juul’s heated tobacco intellectual properties.
No. 3 NJoy was unchanged at 2.7 percent, while Fontem Ventures’ blu eCigs was unchanged at 1.4 percent. Njoy’s future looks brighter after an announcement Monday that Altria plans to pay $2.75 billion in cash for NJoy.
Juul’s four-week dollar sales in the latest report have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 25.7 percent decline in the latest report.
By comparison, Reynolds’ Vuse was up 34 percent in the latest report, while NJoy was down 8.7 percent, blu eCigs down 39.5 percent and Japan Tobacco’s Logic brand vaping product was down 4.9 percent.
As recently as May 2019, Juul held a 74.6 percent U.S. e-cig market share. Neilson data does not consider vape shop sales, which may include more than 40 percent of all vaping product sales.
Two school districts in the U.S. state of Florida have settled with Juul Labs after accusing the company of marketing its e-cigarettes to children.
Palm Beach County School Board members met Wednesday to approve an initial settlement with the e-cigarette manufacturer as a result of joining a national lawsuit brought by more than 1,400 government agencies.
The settlement will likely result in more than $10 million for Palm Beach County schools over the next five years, according to district staff, according to the Palm Beach Post.
The school district was among the governmental entities and 32 tribal governments that sued the company, along with 8,500 individuals.
Orange County Public Schools, which includes the city of Orlando, will receive an estimated $5.4 million as part of a settlement against a vape and e-cigarette company that is accused of marketing its products to children, according to Orlando News.
In June 2020, Orange County Public Schools joined thousands of other school districts and individuals who entered into litigation against Juul Labs.
In December, the company reached a settlement for hundreds of millions of dollars in connection with the design, manufacture, production, advertisement, marketing, distribution, sale, use, and performance of Juul products.
The U.S. regulatory agency will seek input on the proposed rule from both its advisory committee and the public.
The U.S. Food and Drug Administration is proposing new requirements for tobacco product manufacturers regarding the manufacture, design, packing and storage of vaping and other tobacco products.
The proposed requirements would help protect public health by, among other things, minimizing or preventing contamination and limiting additional risks by ensuring product consistency, according to an FDA statement.
“While no tobacco product is safe, this proposed rule is intended to minimize or prevent additional risks associated with these products,”
Brian King / Credit: FDA
said Brian King, director of the FDA’s Center for Tobacco Products. “Once finalized, it would establish requirements for tobacco product manufacturers that will help protect public health.”
The proposed new requirements would help manufacturers comply with the Federal Food, Drug, and Cosmetic Act by helping minimize or prevent the manufacture and distribution of tobacco products contaminated with foreign substances—such as metal, glass, and plastics—which have been found in tobacco products. T
The proposed rule would also help address issues related to inconsistencies between e-liquid product labeling and the actual concentrations in e-liquids, “Such variability can be misleading to consumers, potentially intensifying addiction and exposure to toxins,” the agency states.
The proposed rule would also establish several requirements related to the identification, tracing and corrective actions for tobacco products that don’t meet specifications or are contaminated, including for tobacco products that have already been distributed.
In the event of an issue, these requirements would require manufacturers to take corrective actions, which may include conducting a recall.
The proposed requirements apply to manufacturers of finished and bulk vaping and other tobacco products. As laid out in the proposed rule, a finished tobacco product is a tobacco product, including any component or part, sealed in final packaging; for example, an e-cigarette, a pack of cigarettes or a can of moist snuff.
A bulk tobacco product is a tobacco product that isn’t sealed in final packaging, but is otherwise suitable for consumer use.
The proposed rule establishes a framework for manufacturers to adhere to, including:
establishing tobacco product design and development controls;
ensuring that finished and bulk tobacco products are manufactured according to established specifications;
minimizing the manufacture and distribution of tobacco products that don’t meet specifications;
requiring manufacturers to take appropriate measures to prevent contamination of tobacco products;
requiring investigation and identification of products that don’t meet specifications to institute appropriate corrective actions, such as a recall; and
establishing the ability to trace all components or parts, ingredients, additives and materials, as well as each batch of finished or bulk tobacco product, to aid in investigations of those that don’t meet specifications.
The FDA will hold a public oral hearing on April 12 to gather additional comments from stakeholders, including industry, the scientific community, advocacy groups, and the public.
The proposed rule also will be available for public comment for 180 days. The agency will review all comments as part of the rulemaking process for this foundational rule.
“We remain committed to transparency and stakeholder engagement, including providing clarity to industry so that they are equipped to comply with the law,” said King. “We encourage all interested individuals and organizations to participate in the rulemaking process. When the public submits a comment based on sound grounds, that can make an important difference in the agency’s decision-making.”
The FDA will also hold a meeting of the Tobacco Products Scientific Advisory Committee (TPSAC) on May 18 to seek recommendations from the agency’s outside panel of experts on the requirements laid out in the proposed rule. As part of the TPSAC meeting, the public will have an opportunity to make oral presentations. The FDA intends to make TPSAC meeting materials available on its website no later than 48 hours before the meeting.
Last year, Alaska’s Gov. Mike Dunleavy vetoed his first bill in office, S.B. 45, which would have increased the minimum age to purchase tobacco products from 19 to 21 years old, bringing it in line with the federal Tobacco 21 standard that was passed in late 2019.
Dunleavy didn’t state whether he supported the minimum purchasing age increase, but the bill would have also introduced a tax of 35 percent of the wholesale price on vaping and e-cigarette products and new taxes were not on the governor’s agenda.
“There were many conversations about what an appropriate level to tax would be, but ultimately a tax increase on the people of Alaska is not something I can support,” Dunleavy wrote in his veto letter to Senate President Peter Micciche.
The sponsor of SB 45 has now introduced a new bill that would do much of the same as the 2022 bill, writes Charlie Minato with Halfwheel.
Alaska Sen. Gary Stevens, has introduced SB 89 alongside Micciche, which would change a number of laws regarding the sale of tobacco and vaping products in Alaska, including:
Increasing the minimum age to purchase tobacco, nicotine or vaping products from 19- to 21-year-olds.
Introducing fines of up to $300 for anyone under the age of 21 years olds caught in possession of tobacco, nicotine or vaping products.
Banning the internet sale of tobacco, nicotine and vaping products except under certain conditions.
Introducing a tax on vaping products of 25 percent of the wholesale price.
Regarding the internet sales ban, there is an exception made if the sale is “by a retailer who sells primarily cigarettes, cigars, tobacco, products containing tobacco, electronic smoking products, or products containing nicotine and who restricts access to the premises to only those individuals who are 21 years of age or older.”
There are some exceptions. For example, certain vaping products sold at military facilities would not be subject to the new tax on vapor products. That said, the bill also contains language that could make it illegal for a person to ship tobacco products to someone else in Alaska.
The bill’s text seems to indicate that at least one of the parties involved in the shipment—the shipper or the recipient—likely needs to have a tobacco license or meet other special circumstances, if not, the shipment would be deemed illegal.
Dutch parliamentarians want e-cigarettes and other vaping products to have a boring and uniform appearance.
According to the D66, which will submit the proposal in parliament today, the new rules will make vaping less attractive to teenagers. A majority in parliament supports the plan, RTL Nieuws reports.
“Young people now think it’s cool to have such an accessory with glitter while vaping is extremely unhealthy,” D66 parliamentarian Jeanet van der Laan told the broadcaster. “The vapes resemble a lip gloss or a marker. They are often colorful, and there are vapes full of glitter. Parents often have no idea exactly what the young people are carrying. Super worrying.”
There are even e-cigarettes in circulations that look like airpods, Van der Laan said. “That makes it look like a glamor accessory, while it is just smoking and therefore harmful to health. And young people are tempted by all those frills to start smoking.”
“E-cigarettes should look as neutral and uniform as possible. Preferably they should resemble regular cigarettes. Or else just white or black. Because it’s just smoking,” the D66 MP said. She believes a more boring appearance will make vaping less attractive to young people.
The Tweede Kamer, the lower house of the Dutch parliament, is discussing smoking on Wednesday. The D66 will submit its proposal during that debate. It seems to have majority support, according to RTL.
