Tag: vaping

  • Wang: Global Trade Tariffs in Vaping

    Wang: Global Trade Tariffs in Vaping

    The vaping industry has always faced its share of challenges—from shifting regulatory landscapes to evolving consumer preferences. However, a few factors significantly threaten the industry’s future, such as the impact of global trade tariffs. With the United States set to increase tariffs on Chinese imports, companies that fail to adapt could face skyrocketing costs, disrupted supply chains, and a diminished ability to compete in one of the world’s largest markets.

    Trade tensions between the U.S. and China have been escalating for several years. The vaping industry, which relies heavily on hardware manufactured in China, is particularly vulnerable to these developments. Currently, vaping products imported from China face a 25% tariff, but there is a high likelihood that this could double or even increase to 100% under future U.S. administrations.

    For vaping companies, such tariff hikes mean the cost of importing devices could skyrocket. A 100% tariff would effectively double the cost of hardware produced in China, driving up retail prices for all such products in the U.S. market. This scenario threatens the financial viability of vaping companies and the availability of affordable, high-quality products for consumers.

    The Strategic Decision to Move Manufacturing to Malaysia

    Recognizing the potential for increasing tariffs and broader geopolitical challenges, some vaping manufacturers began shifting their operations from China to other countries. Such decisions were never made lightly. China has long been a global leader in manufacturing efficiency with a robust infrastructure and supply-chain network,, and moving away from such an established infrastructure posed significant logistical and operational challenges.

    Malaysia offered several key advantages to manufacturers. Firstly, Malaysia enjoys favorable trade agreements with the United States, the United Kingdom, and the European Union. For instance, starting in December 2024, a new free trade agreement between Malaysia and the U.K. took effect, eliminating tariffs on products moving between the two countries. Similar agreements are in place or in development with other major markets.

    Secondly, Malaysia’s robust manufacturing ecosystem and skilled workforce make it an ideal location for high-quality production. By establishing operations in Malaysia, companies can continue to deliver reliable, innovative hardware without the added burden of excessive tariffs.

    The Broader Impact on the Global Supply Chain

    The shift to Malaysia reflects a broader trend in global manufacturing. As trade barriers between the U.S. and China grow, a widespread redistribution of manufacturing operations is underway. Companies across industries—not just vaping—are reevaluating their supply chains to reduce dependence on any single country.

    This global redistribution of resources presents both challenges and opportunities. For manufacturers, the challenge lies in building new infrastructure, securing reliable suppliers, and maintaining quality control in unfamiliar territories. However, companies that successfully navigate these changes benefit from more resilient supply chains, reduced geopolitical risk, and greater flexibility in responding to market shifts.

    Maintaining Compliance and Quality Standards

    Shifting manufacturing bases also brings new compliance considerations. Regulatory bodies like the U.S. Food and Drug Administration (FDA) require Premarket Tobacco Product Applications (PMTAs) for vaping devices. These applications are tied to specific manufacturing facilities, meaning that changing production locations requires amendments to existing PMTAs or new submissions.

    Manufacturers must ensure that new facilities meet the highest quality and compliance standards. Proactively managing these regulatory requirements ensures that products remain market-ready even as production locations change.

    The Future of the Vaping Industry Amid Trade Challenges

    Looking ahead, it’s clear that trade tariffs and global manufacturing shifts are not short-term challenges. Regardless of who occupies the White House, protectionist trade policies are likely to persist or even intensify. The vaping industry must be prepared for this new reality.

    Companies that fail to diversify their manufacturing operations face mounting costs and increasing vulnerability to trade disruptions. On the other hand, those who invest in flexible, resilient supply chains will be well-positioned to thrive.

    The vaping industry is at a crossroads. Global trade tariffs pose a significant threat, but they also offer an opportunity for companies to rethink their supply chains and build more resilient operations. For manufacturers, shifting production from China to countries like Malaysia is not just a reactive measure—it’s a strategic move to secure long-term growth and competitiveness.

    As the industry moves forward, companies that adapt to these challenges will be the ones that lead the way. The ability to anticipate trade disruptions, embrace innovation and maintain rigorous quality standards will determine who succeeds in this ever-evolving market.

    As co-CEO of Ispire Technology Inc., Michael Wang is a leader in the development and commercialization of vaping technology and precision dosing. Previously, he served in executive roles at The Pharm/Sunday Goods, Onestop Commerce, Zazzle, and Honeywell.

  • Routine Failure

    Routine Failure

    The US Supreme Court to decide if a failed routine drug test amounts to racketeering.

    By Timothy S. Donahue

    The U.S. Supreme Court has been busy this session. The court has heard several cases dealing with the nicotine and cannabis industries. Among them is the case of a truck driver who was fired from his job after a CBD wellness product marketed as THC-free caused him to fail a routine drug test. Douglas Horn sued the maker of the CBD product he took for chronic pain under a federal racketeering law for economic harm.

    A decision in the case, expected next year, could determine the ability of Americans to collect substantial damages under an anti-mob law if they lose their job after being injured by consumer products.

    The companies that manufacture the product argued to the justices that Horn’s injuries were personal rather than related to any harm to his business or property. Therefore, they contended that his case did not fall under the Racketeer Influenced and Corrupt Organizations Act (RICO). This federal law, originally enacted to combat organized crime, establishes the right for individuals who suffer injuries to their business or property due to racketeering activity to seek triple damages.

    A longtime trucker, Horn had an unblemished record over his decades of service. Like many truckers, Horn’s job required frequent drug testing to ensure compliance with federal regulations, particularly given the risks associated with operating heavy machinery on the nation’s highways. A single failed drug test could cost him his commercial driver’s license and, consequently, his livelihood.

    In 2020, Horn began experiencing chronic pain due to the physical demands of his job. After researching various treatments, he turned to CBD products for relief. CBD, or cannabidiol, is a nonpsychoactive compound derived from the cannabis plant and is widely marketed for its potential therapeutic benefits, such as pain relief and reduced anxiety. Significantly for Horn, the CBD products he chose were advertised as containing no THC—the compound in cannabis that is responsible for its intoxicating effects.

    Relying on these assurances, Horn began using CBD products regularly. While CBD is entirely legal, THC remains illegal in certain contexts. However, during a routine drug test, he tested positive for THC. Despite his protests that he had only used CBD products labeled as THC-free, Horn was promptly suspended and later terminated from his job. Unable to find another position due to the failed drug test, Horn faced financial ruin.

    Horn filed a lawsuit, claiming that the producers of Dixie X committed mail and wire fraud that resulted in harm to his “business or property.” A federal district court ruled against Horn, but the New York-based 2nd U.S. Circuit Court of Appeals allowed his suit to move forward. The company appealed to the Supreme Court a year ago, arguing in part that the RICO Act never contemplated “garden-variety products-liability” suits. The justices agreed to hear the case, recognizing its broader implications not only for the CBD industry but also for the interpretation of federal law and consumer protection standards.

    The CBD companies argued that they were operating within the bounds of federal law, particularly under the 2018 Farm Bill, which legalized hemp-derived CBD products with THC levels below 0.3 percent. They contended that any trace amounts of THC in their products were legal and that they had not intentionally deceived consumers. The companies also asserted that RICO was not the appropriate vehicle for this type of claim, arguing that it was intended to address criminal enterprises, not businesses engaged in legal commerce.

    However, Horn’s legal team countered that the companies’ actions constituted a pattern of fraudulent activity, directly causing harm to consumers like Horn. They argued that RICO could be applied in this case because the companies knowingly misled consumers about the contents of their products, thereby violating federal laws and causing tangible damages.

    Lisa Blatt, representing the manufacturers, stated during the hearing that Horn’s unwanted ingestion of THC constituted an injury to his body—essentially a “personal” injury—and not an injury to his “business or property.” She argued that Horn’s economic losses were the “damages he sustained” due to that injury.

    Easha Anand, representing Horn, argued that the lost employment is an injury to “business” that should bring the case within the wheelhouse of RICO. The lower court agreed with Horn, permitting his suit to proceed before the companies took the case to the Supreme Court. The American Association for Justice agreed with Anand and urged the Supreme Court to side with the trucker.

    Unlike its criminal counterpart, the companies contend that the civil RICO statute explicitly states that a plaintiff must be “injured in his business or property.” They argued that this wording indicates an intent to exclude the other primary type of injury recognized by the law —injury to the person—typically the basis for hiring “personal injury” lawyers.

    Horn’s premise—that civil RICO is available if the “personal” injury leads to “business or property” damages—would have sweeping implications, the companies argued, making RICO available to any tort plaintiff who can produce a receipt for lost wages or other economic loss. And the Clayton Act, a critical antitrust statute, Blatt told the justices, limits private suits to plaintiffs with injuries to “business or property,” for which the Supreme Court routinely has rejected personal injury claims. The same result, she argued, should apply here.

    For Horn, though, “injured” is the same thing as “harmed,” and the harm he suffered to his business (loss of employment) is a classic injury to business of the type that the civil RICO statute reaches. Anand also emphasized that in RICO, Congress made clear that the act “shall be liberally construed to effectuate its remedial purposes.” That rule of construction, she said, suggests that in the event of any doubt, the court should permit Horn’s suit to proceed.

    After more than an hour of argument, it appeared that the case could divide the court’s conservative justices, some of whom seemed sympathetic to Horn’s position and others wary of opening up the ability for people to seek significant awards for run-of-the-mill injury claims. During Anand’s presentation, Chief Justice John Roberts stated that the limitation on “business or property” is intended to be a significant constraint on the scope of RICO, which he views as central to the law’s purpose. He suggested that Anand’s position could undermine this important limitation.

    Justice Brett Kavanaugh was even more pointed, criticizing the idea that Horn could “get around that limitation … by characterizing the lost wages or medical expenses as separate injuries to your business or property.” And Horn’s position, Kavanaugh warned, would create “a dramatic, really radical shift in how tort suits are brought throughout the United States.”

    Justice Elena Kagan challenged Blatt’s reading of the text. Kagan pushed Blatt to assist her in figuring out “the most normal, natural reading” of the statutory language.

    “If you’re harmed when you lose a job, then you’ve been injured in your business, haven’t you?” Kagan asked the lawyer for the companies. The law, Kagan said, “just says if you’ve been injured by a RICO violation in your business, which includes your employment, then you’re entitled to threefold damages.”

    The Supreme Court’s decision in the Horn case could significantly impact both the trucking and cannabis industries. If the court rules in favor of Horn, it may lead to an increase in lawsuits against CBD companies, potentially changing the legal landscape for the industry, according to legal experts. Furthermore, such a ruling could prompt Congress to reconsider the 2018 Farm Bill and related legislation to establish clearer CBD product guidelines.

    If the court rules in favor of the CBD companies, it may enhance the current regulatory framework and limit the use of RICO in cases involving cannabis products that are legal under state law. This outcome could provide some reassurance to the cannabis industry, which has frequently encountered legal uncertainty due to the conflicting laws between federal and state regulations.

    The case not only affects the parties directly involved but could also establish a precedent for how courts manage disputes in industries where state and federal laws conflict. Additionally, it may shape how companies address advertising and product labeling in sectors with new and changing regulatory frameworks.

    Consumer protection advocates have also commented on the case, arguing that companies should be held accountable for their claims, particularly in industries where health and safety are at stake. They see the case as a critical test of whether existing laws are sufficient to protect consumers in the rapidly evolving cannabis market.

    The Horn case touches on fundamental issues of federalism, consumer protection and the intersection of law and commerce in a rapidly changing industry. For Horn, the case represents a fight for justice after a devastating blow to his career. For the CBD companies, it is a battle to protect their business practices and the legitimacy of an entire industry.

    Regardless of the outcome, the decision will likely have a lasting impact on the legal and regulatory landscape for CBD products, the trucking industry, and beyond. The Supreme Court’s ruling will not only decide the fate of one trucker but could also shape how emerging industries are regulated and held accountable under U.S. law.

  • Licensed to Sell

    Licensed to Sell

    The 2024 UKVIA forum focused on the UK’s proposed Tobacco and Vapes Bill.

    By George Gay

    As many people have noted, it seems odd that after decades of handwringing over the negative health consequences of tobacco smoking, the health community has been at best lukewarm and at worse fundamentally opposed to the introduction of new-generation nicotine products. After all, these products are significantly less risky than combustible cigarettes, and they have been more effective at helping smokers quit their habit than any of the products or strategies previously used. The health community seems to have been intent, and largely successful, on reviving the tobacco wars as the nicotine wars—this time, with it comprising the bad guys.

    The health community has obstructed the introduction of these new products, which it generally recognizes as being less risky than cigarettes, partly on the grounds that, since they are relatively new, it is not known what negative health effects they might cause in the future, after prolonged use. This, of course, is to misapply the precautionary principle given that the new products are being used to replace combustible cigarettes, which the health community likes to describe as comprising a consumer product that will kill you when used in the way it is designed to be used. Since humans are unable to predict the future with certainty, such an approach comprises an ideology that rules out change, including progress, of any kind.

    The health community has resisted the introduction of less risky products also on the grounds that they are used by those too young to buy them legally. Consumption by those underage is often described as comprising an epidemic, but this is hyperbole, often used, apparently unashamedly, by people who put themselves forward as scientists. It has also been used by U.K. politicians who, while saying that nobody wants children to come to harm, vote against providing meals to young people from financially impoverished families.

    It seems that many in the health community and many politicians prefer to stick their heads in the sand when it comes to the rising level of child poverty in the U.K. and prefer to remain in that rather uncomfortable—not to say undignified—position rather than admit that many underage vapers are the risk-takers who, if they had not been vaping, would have been smoking.

    Nevertheless, it cannot be denied that if some of those who are too young to buy vapes legally are vaping regularly, then somewhere along the line, the law has probably been broken, and this law-breaking should not be allowed to continue to happen with impunity. Indeed, this is something the U.K. Vaping Industry Association (UKVIA) has recognized for a long time. For years, it has called for the introduction of a retail licensing scheme that would allow sanctions to be imposed on retailers who sold vapes to the underaged and indulged in other illegal activities.

    And from this point of view, one provision of the U.K. government’s much-trailed Tobacco and Vapes Bill (T&V) 2024, which was published 10 days before the UKVIA held its annual forum in London on Nov. 15, drew a cautious welcome from participants. In part, the bill provides for the introduction of a licensing scheme* for the retail sale of vapes and nicotine products as well as tobacco products, herbal smoking products and, somewhat bizarrely, cigarette papers (but not cigarette lighters). The welcome was cautious because a few flies could drop into the ointment, one of which could be a lack of enforcement, a problem that was given a new-to-me angle during the forum.

    In the past, it has been said that government austerity measures had left Trading Standards (TS) with inadequate resources to fully carry out its responsibilities, which, among many others, include enforcing compliance with retail laws as they apply to tobacco and nicotine products. But a forum presentation by Kate Price, the lead officer for vaping at the Chartered Trading Standards Institute, seemed to cast doubt on whether this lack of TS funding was the most significant issue and, therefore, on whether an increase in funding would make a great deal of difference.

    The forum was told that TS teams worked for local authorities that also had seen their funding slashed, leaving them needing to control their budgets tightly. The implication seemed to be that these authorities, with responsibilities that include the protection of vulnerable children and older people, might not see retail offenses as a high priority for prosecution through the courts, which anyway were suffering from backlogs caused by their own funding issues.

    Neither, it seemed, would it make much difference if, as some have suggested, the revenue from licensing fees were to be ringfenced for use by TS because, presumably, this would do nothing to relieve the bottlenecks further down the line that lead to court appearances. One other provision in the T&V bill might be more positive in that, if enacted, it would give TS powers to issue on-the-spot fines, but the industry seems to believe, not without justification, that the level of fines being discussed would not present much of a deterrent given the profits that can be made by retailers who sell illicit products and/or licit and illicit products to those underage.

    I shouldn’t give the impression that Price is against further funding for TS; she isn’t. In fact, she made the point that it was difficult for TS to cover the 60,000 premises from which vapes are sold, and, because of this, she asked industry players to report whenever they came across rogue retailers. This was all well and good and in line with the industry’s desire to work closely with TS, but later in the forum, retail representatives seemed to suggest that many reports were made, but few seemed to be acted upon. It was said that there were few prosecutions, and those prosecutions attracted low penalties.

    It was said too that the system of enforcement needed to move from reactive to proactive, using, among other things, a system of regular test purchases, and I got the impression that there was a need for a complete rethink because the whole system of retail oversight and enforcement seemed far too cumbersome to produce timely prosecutions. The industry is aware that this is the most important issue that it needs to address because the retail sale of illicit products and the sale of all products to the underaged are two big sticks with which its opponents can keep beating it. On the positive side, the government says that it intends to strengthen enforcement activity to support the implementation of the measures outlined in the T&V, but, with government coffers hardly overflowing, the industry would be unwise to hold its breath on this one.

    Price’s presentation, informative and useful as it was, rather put me in mind of some of the wise words of the late JJ Cale on his Grasshopper album, where he laments that “Prop up the front, the back falls down.” In fact, come to think of it, those words might comprise a suitable theme for the 2025 UKVIA forum.

    This year’s forum, which was held under the theme “The Changing Vaping Environment— Succeeding in a New Policy Landscape,” comprised a packed program of practical presentations and panel discussions that, along with a modest exhibition space, embraced nicotine pouches as well as vapes.

    In opening remarks, forum participants were told that the vaping industry faced an unprecedented period of change but that it could succeed and even thrive in the new policy landscape. The industry, the government, regulators and the public health community could work together to ensure that vaping could achieve its full potential—a smoke-free U.K. and the health benefits that would flow from such an outcome.

    John Dunne, the director of the UKVIA, said, however, that the industry had to deal with the issue of youth uptake and, in this regard, he expressed delight that the government had reintroduced its T&V bill and added a provision to include a vaping licensing scheme. The industry supported evidence-based and well-balanced regulation aimed at addressing the issues of packaging, product design and flavor descriptions that young people might find overly appealing, he added. But he issued a word of warning in asking the government to oppose any measures that could equate vaping with smoking because far too many people still believed that vaping was as harmful or more harmful than smoking.

    I’m afraid this is a plea destined to fall on deaf ears. In fact, if the T&V bill goes through in anything close to its present form, which seems likely, I think the equating horse will have already bolted. You only have to look at the name of the bill to see that smoking and vaping are being lumped together, and many of the bill’s provisions, as they stand, give the idea that cigarettes and vapes need to be dealt with in lockstep. Unfortunately, smokers are likely to interpret this as meaning that there is no point in switching.

    The only way in which it would be possible to view this bill as having been put together by people who intended to engage the full potential of vaping to reduce the incidence of smoking would be to assume they were suffering from a nasty case of cognitive dissonance. I think the bill indicates that the U.K. is on the cusp of throwing away its previous positive approach to tobacco harm reduction.

    How else is it possible to explain how a country that has stated officially that vaping is 95 percent less risky than smoking and that has been operating a “swap (vapes for cigarettes) to stop” scheme is now proposing that the advertising and sponsorship of nicotine products be banned, putting them into the same basket as cigarettes? In a bill factsheet, the government states unequivocally that its intention is to equate nicotine products with tobacco products in this respect. “The bill will ban the advertising and sponsorship of all vapes and other nicotine products (such as nicotine pouches), mirroring impactful restrictions on tobacco [my emphasis],” it says. This seems to me to be the exact opposite of what is needed, which is the vigorous promotion of the advantages of smokers switching to vapes and other nicotine products.

    There is much more that is of concern too. “The bill also provides powers to make places vape-free and heated-tobacco-free, insofar as they are smoke-free places,” the factsheet states. “Vape usage is already prohibited in many places, and, as with smoke-free places, proposals for any restrictions will be subject to full public consultation.” Once again, the government is implying that there is no difference between smoking and vaping, without having rescinded its 95 percent less risky stance. This is cognitive dissonance on stilts.

    Although it is not necessarily relevant here, it is worthwhile examining the government’s thinking on tobacco smoke in outdoor settings. “Secondhand smoking poses a risk to your health even outdoors,” it states in the “Rationale for Intervention” section of its factsheet. “It is particularly dangerous for vulnerable people like children, pregnant women and those with preexisting but usually invisible health conditions such as asthma and heart disease.

    In some public settings, exposure can be high—if you can smell smoke, you are inhaling it.” Of course, it could have added: If you can smell e-cigarette vapor, you are inhaling it. And it could have further added for those who enjoy being frightfully continental and sitting at pavement cafes with diesel traffic chugging by that the opposite is not true, so you can inhale a busload of toxic fumes that your olfactory system has not warned you about. The truth is that you can get up and move away from tobacco smoke, which, like e-cigarette vapor, is also visible, but even if you detected it, you would have to move to the Outer Hebrides to get away from vehicle pollution. But then who is interested in the truth when half-truths and hypocrisy will win the argument?

    The bill will also provide ministers with powers to regulate the flavors, packaging and display of all vapes and other nicotine products, which, as Dunne indicated, are not issues that would necessarily concern the industry. But the sweeping powers are surely of concern, if for no other reason than that they leave the industry at the mercy of the whims of ministers, who come and go. This is a difficult position in which to leave an industry that runs on costly innovation and therefore needs stability.

    As was said often during the forum, the devil is in the detail, which is currently out for “consultation.” The trouble here is that there are consultations and consultations, and if the tobacco industry’s experience is anything to go by, this consultation will be between the government and those who support the government’s position or want its interventions to be more draconian than those proposed.

    This is not to suggest that the industry and its supporters should not interact with the consultation, especially if they are the sorts of people who find comfort in whistling Dixie. But my guess would be that many of the most popular flavors among adult consumers will be junked. And in further measures that will emphasize in the minds of consumers the idea that smoking and vaping are the same, packaging will be tightly regulated, possibly with the inclusion of unfounded health warnings, and vapes will be regulated out of sight in retail outlets.

    What is probably the standout provision of the T&V will make it an offense to sell tobacco products, herbal smoking products and cigarette papers—what has the government got against small pieces of paper?—to anyone born on or after Jan. 1, 2009. This provision seems to be supported by the vaping industry, but for the life of me, I cannot see why. In the unlikely event that this measure is made to work, and the industry sticks to its position that vapes should be used only by cigarette smokers to quit their habit, all the generational tobacco sales ban will do is ensure that the industry runs out of potential customers faster than it would do otherwise.

    In addition, you have to wonder whether the industry really believes that, having been successful with its generational tobacco sales ban, a future government won’t turn its sights on a generational nicotine ban. The signs are there for those who look, not the least of which is the fact that heat-not-burn products are to be included in the tobacco sales ban. The best way to encourage smokers to quit their habit is to offer them a range of alternative low-risk products, and heat-not-burn systems have proved that they should be part of the range. The government should take cognizance of the fact that while you can kick logic out the door, it will come back at you through the window.

    Surely, a better industry approach would be for it to oppose the generational tobacco sales ban on the grounds that, since so-called smoking-related diseases take decades to manifest themselves, such an ungainly policy will take far too long to show any significant effects. It could argue, rightly, that a much faster route to a healthier population is available and is one that will not involve the government in spending huge sums on enforcement, that will not require it possibly getting bogged down in issues of identity cards and that will not involve it getting into a fight with libertarians and others concerned with individual rights.

    All the government has to do is bring in an effective vaping product registration scheme, which anyway is one of the provisions of the T&V, stop equating vaping with smoking and start promoting the health benefits of smokers switching to vaping. What is a highly innovative industry will do the rest.

    Innovation was to the fore during the forum, and one session looked at “How vape technologies are evolving as we approach a post-disposables future and a new era of responsible vaping.” Although what was an interesting but shortened session ranged much wider than the title suggests, it is to be welcomed, I think, that the title, with its “new era of responsible vaping,” seemed to suggest that the industry has come to terms with the ban on disposables that will come into effect at the beginning of April next year. There are some fights worth engaging in, but they don’t include those that are difficult to win because they are ethically suspect at a time of environmental breakdown.

    Of course, some will say that the ban won’t work. The phrase “bans have never worked and never will work,” rang out often at the forum. But this simply isn’t true. There are a huge number of bans that work under any reasonable definition of the word “work” in this context, car speed limits comprising one. Only if you apply to the word “work” the unreasonable definition that brooks no or few contraventions can it be claimed that bans don’t work. This is not to say that all bans are a good idea, of course.

    In fact, there is widespread tacit approval of bans within the vaping industry, though these industry-friendly bans are supported because they operate under the cover of being positive developments, as well they might be, rather than negative ones. Look at the title of this session: “From licensing to product and regulatory compliance—killing the black market, not the consumers.”

    The licensing scheme referred to here will ban all those who cannot obtain a license for selling vapes while the regulatory compliance scheme will ban any product that doesn’t conform. And, of course, it goes without saying that the black market is banned. Those who don’t believe in bans should come out against the licensing proposal, they should come out against the regulatory compliance proposal, and, in fact, they should agitate to make everything legal. Such a position, if enacted, would at least save a fortune on enforcement.

    And such a position would save another fortune on lawyers. But for the time being, at least they are involved, as was made obvious by an informative presentation on“A case for vaping —What legal recourse does the industry have against misinformation, infringement, bad regulation and the illicit market?”This was an interesting presentation in line with the UKVIA forum’s emphasis on the practical, including as it did a look at patent infringements and anti-competitive practices, among other topics.

    Meanwhile, there were presentations on “Politics in the spotlight—Working with a new government and understanding the vaping products duty.” The latter presentation was interesting, not least because it highlighted a measure brought in by the new government that clearly is another way in which smokers might be persuaded that the consumption of vapes is as harmful as smoking. Looked at in a more positive light, however, Price mentioned in her piece that the application of duty would drag into the vapes enforcement arena bodies with more powers than TS has—HMRC (revenue and customs) and Border Force.

    It is worth mentioning that the duty issue comprised a positive example of the industry’s being able to use the consultation process. It wasn’t able to dissuade the government from applying a duty, but it was able to persuade it to bring in a flat rate rather than the tiered system that had been proposed. In fact, the forum was told that the Labour government had proved more approachable and receptive than the previous Conservative government had proved more approachable and receptive. The industry had been able to have a good level of engagement with the government, TS and HMRC.

    The forum included a couple of sessions focused on the truth, or lack of it, within the vaping sphere: “Closing the trust gap—How public education campaigns can be critical to correcting the vape narrative” and “Taste of truth—Understanding the key role of flavors in harm reduction.” One session looked at “The balancing act—What is the best route to further unlock vaping’s potential to improve harm reduction while also protecting young people?,” and the final session gave the floor to consumers by “Adding consumers to the conversation—A live focus group with the industry’s biggest stakeholders.”

    *Health issues are generally the responsibility of the U.K.’s devolved governments and administrations in Northern Ireland, Scotland and Wales, but, in this instance, the licensing scheme will apply in England, Wales and Northern Ireland while the bill will expand the scope of Scotland’s existing retail register to include herbal smoking products and nicotine products.

  • FDA Warns 9 More for Illegal Vape Sales

    FDA Warns 9 More for Illegal Vape Sales

    The U.S. Food and Drug Administration issued warning letters to eight online retailers and one manufacturer for selling and/or distributing unauthorized flavored, disposable e-cigarettes.

    Some of the unauthorized products cited in the warning letters are marketed under brand names for disposable products, including Geek Bar and Lost Mary, according to the FDA. Other unauthorized products cited feature the names and/or images of celebrities.

    The firms receiving these warning letters sold and/or distributed e-cigarettes in the United States that lack authorization from FDA to be legally marketed in the U.S., which is in violation of the Federal Food, Drug, and Cosmetic Act.

    In addition to the violations mentioned in the warning letters, the firms were warned to address any violations that are the same as, or similar to, those stated in the warning letter and to promptly take necessary actions to comply with the law.

    Failure to promptly correct the violations can result in additional actions such as an injunction, seizure, and/or civil money penalty.

  • Gateway to THR

    Gateway to THR

    The Middle East Vape Show will hold their next event in Bahrain in January.

    By Norm Bour

    Over the past year, I’ve shared insights to the vape markets in Southeast Asia, including Indonesia, Vietnam, the Philippines, Thailand and Malaysia. Though some of them are separated by just a few feet, the differences between their vape markets—if they even exist—can be a numbing chasm of uncertainty.

    Though the vape market started in China, it took off more quickly in the West, and the U.S. and Europe jumped on trend with a vengeance. Asia took longer, limited by religion, government restrictions and customs as much as anything, and even though these countries are still muddled and unpredictable, the Middle Eastern market is also trying to compete with the Western world and has matured impressively over the last few years.

    In 2021, I was fortunate to be a speaker in Dubai at the World Vape Expo, and as the Covid pandemic was finally allowing the world to return to “normal,” the exhibitors and attendees seemed impressed at the Middle Eastern presence.

    Now, three years later, the region’s vape market is slowly transitioning from a sinful (and unlawful) replacement to tobacco, to a viable (and profitable) alternative to cigarettes, and the Middle East Vape Show, MEVS 360, will demonstrate that at its Jan. 15–17, 2025, event in Bahrain. Last year, post-Covid, the organizers restarted their event in Cairo. The event will alternate between several locations, including Kuwait and Jordan.

    But, as this article was being written, there are even more changes in the works.

    This event, launched in 2019, has been recently purchased by Dallah Promotions, one of the biggest event management companies in Bahrain and Saudi Arabia. Dallah promotes everything from Comic Con to Ferrari Night, so it must see potential in the vape market, and since they specifically focus on B2C, that would be an enhancement to the show. With this new ownership, the old name, MEVS 360, will be replaced with International Vape Con (IVC) at the Bahrain show, which will be held at the beautiful Exhibition World Bahrain venue.

    The new owners recognize the growth trend of vaping throughout the Middle East, and their biggest targets are Saudi Arabia and Kuwait. As a member of the Gulf Cooperation Council (GCC), Bahrain charges a 100 percent tax on tobacco, vape products and energy drinks. Bahrain’s excise tax law was ratified in 2017 and is intended to equalize tobacco taxes and reduce the affordability of tobacco and improve public health. Even with the high tax rates (paid upon import), finding exhibitors for the MEVS 360 show has not been a problem, though the numbers are down from prior years.

    Arya Hakim, senior media and production manager with the organization, said it clearly: “The mostly Middle Eastern buyers want quality and are willing to pay for it. They like the disposables, won’t buy ‘junk,’ and they want innovation. This puts pressure to the Chinese exhibitors to bring their ‘best game’ and leave their knockoffs at home.”

    Due to restrictions, the IVC will showcase only vape-related products and e-liquids but no tobacco, hookah, shisha, etc. The relatively small show brings in fewer than 100 exhibitors. Its main problem is that the Middle East is still viewed as a small market. The competing World Vape Show in Dubai is the exhibition’s biggest competition in the region.

    Smoking is still a big business in the Middle East. Vapers account for almost 20 percent of Egypt’s 112 million population. Home to just 1.5 million people, Bahrain reported a share of about 15 percent in in 2020. In between is the affluent Saudia Arabian market of 37 million people, of which 10 percent are smokers.

    “Arabs love to smoke!” joked Hakim.

    But Bahrain does have a unique competitive edge in the Middle East. It is one of several countries that have a Free Trade Agreement with the U.S., primarily driven by the mutually beneficial military and naval presence there. Hardware is duty-free for Americans, but tobacco and vape liquids are not.

    Another positive change in the show is the partnership with Ecigclick, an independent testing organization that offers advice on the best vape products to buy, along with industry news. Since 2010, the organization has been a leader in the vape space and annually hosts its Ecigclick Vape Awards, which is judged by public vote. Also part of this new collaboration will be 2FIRSTS, a China-based vaping industry media outlet and consultancy, and Rifbar, a newer disposable supplier that has been very hot.

    No question, over the years, new collaborations, buyouts and mergers have fueled the growth of the vape industry, creating larger and larger entities, controlled by fewer players. This was predicted a decade ago, and that trend should continue going forward.

    Norm Bour is the founder of VapeMentors and works with vape businesses worldwide. He can be reached at norm@VapeMentors.com.

  • U.S. Customs Seizes $81 Million in Vapes This Year

    U.S. Customs Seizes $81 Million in Vapes This Year

    Credit: Eduardo Barraza

    During the last 12 months, U.S. Customs and Border Protections (CBP) officers in Chicago made 121 seizures containing over 3.2 million prohibited Electronic Nicotine Delivery Systems (ENDS) products with a Manufacturer’s Suggested Retail Price of more than $81.5 million.

    Almost all the shipments originated from China and were destined for locations across the U.S. Most shipments violated the FDA’s Federal Food, Drug, and Cosmetic Act (FD&C Act), while some were seized for Intellectual Property Rights (IPR) violations, according to CPB. Some of the IPR violations concerned used unauthorized trademarks associated with pop icons. By copying these well-known marks, the seller targeted teens and younger adults, hoping to persuade them to purchase their counterfeited items.

    “It is common for bad actors to use popular people and brands to promote their products. In a couple of these instances, they used the name of an influencer with a large following specifically targeting the younger audience,” said LaFonda D. Sutton-Burke, director, Field Operations, Chicago Field Office. “CBP’s trade enforcement mission places a significant emphasis on intercepting illicit products that could harm American consumers, and we will continue to work with our consumer product safety partners to identify and seize unsafe and unlawful goods.”

    In addition to IPR violations, CBP seized these products because they lacked the required FDA marketing authorization and were found to be adulterated and misbranded, violating the FD&C Act. Vapes, e-cigarettes, and other electronic nicotine delivery systems that are unapproved by the FDA may contain higher levels of nicotine and other unknown, toxic chemicals, making them extremely hazardous to health.

    “Criminals are using every means imaginable to expand the reach of their illicit enterprises,” said Mike Pfeiffer, Chicago area port director. “The sales from illegal goods are used to fuel further criminal activities such as the trafficking of drugs, defrauding innocent people, and purchases of illegal weapons, just to name a few.”

    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 state and federal import regulations.

  • Juul Labs, Altria Vape Suit in Alaska Ends in Mistrial

    Juul Labs, Altria Vape Suit in Alaska Ends in Mistrial

    Credit: Wirestock

    A mistrial was ruled last week in a lawsuit filed by Alaska against Juul Labs, Inc. and the Altria Group, Inc., for what the state alleged was the company’s role in causing an increased use of e-cigarettes by youth.

    In a statement, Alaska Attorney General Treg Taylor said that his office was “disappointed” to see the case end in a mistrial due to a procedural error.

    “This does not reflect the merits of the case,” Taylor said. “We are still evaluating our options, including pursuing another trial.”

    In a follow-up question, Alaska’s News Source asked the State’s Department of Law to elaborate on the details of the procedural error, asking specifically if it was a matter of jury tampering.

    The Attorney General responded in a statement by saying:

    “The Attorney General’s office appreciates and thanks the members of the jury who devoted nearly seven weeks to carefully considering the evidence in this case. While the case ended in a mistrial for procedural reasons, the facts have not changed,” Taylor said. “Youth vaping continues to present a grave threat to the health of our kids. Companies that design and market products that are harmful to our children will be held to account. That was true before this trial began, and it remains true today.”

    In a statement from Juul Labs, External Affairs Vice President Stefanie Miller accused Alaska of having one of the highest smoking rates in the country while it continues to attack an “American company” that provides alternatives to combustible cigarettes.

    “We are hopeful that the hard work of the court and the jury will be taken into consideration before more of the State’s resources are devoted to matters almost 10 years old and, instead, will be directed to address the true threat to Alaskans: the flood of illegal and untested Chinese vaping products that target Alaska’s youth,” the statement said.

  • Denver, Colorado Again Passes Tobacco Flavor Ban

    Denver, Colorado Again Passes Tobacco Flavor Ban

    Credit: Marek Photo Design

    On Monday evening, the Denver City Council passed the final reading of an ordinance that will ban the sale of flavored tobacco products in the city. The ban passed by a vote of 11-1.

    The law, which still needs the signature of Mayor Mike Johnson, will go into effect in 90 days and will ban the sale of all forms of flavored tobacco, including cigars and pipe tobacco, as well as flavored vaping products. It does not apply to flavored tobacco intended to be smoked in a hookah that is sold at a hookah tobacco retailer.

    Retailers who violate the ban will face suspensions of their privilege to sell tobacco products should they receive two or more violations within the one-year window. Suspensions start at least 30 days and increase to a year for four or more violations. Additionally, that window will go wider in the coming years; as of Jan. 1, 2027, two violations in two years earn a 30-day suspension.

    A total of 34 individuals signed up to present comments to the council, which limited the public comment portion to 30 minutes before the vote. People came to speak in support of and in opposition to the ordinance; retailers told the council that a ban would hurt numerous businesses and cost the city tax revenue, as customers would take their businesses elsewhere. A council member indicated that 15 of the 18 municipalities that border Denver do not have similar bans in place.

    Retailers also said they would shift sales to the unregulated black market while taking ancillary purchases, usually made at convenience stores, into other cities and towns. One retailer noted that 536 tobacco retail stores in the city will be adversely affected by the ban. Other retailers also said that the council failed to adequately work with retailers in developing the ban and enforcing its existing laws on sales to minors.

    Speakers connected to law enforcement also suggested that it would fuel the growth of the black market, which comes with increased criminal activity and products of inferior quality that could pose an even greater health risk, Halfwheel reports.

    The Cigar Association of America wrote to the council to oppose the ban, saying in a Dec. 3 letter that “this blanket approach is a disproportionate and ineffective attempt to address any issues of youth usage, especially considering that the only facts and allegations presented as justification for the Proposed Ordinance relate to other product categories – such as vapor and cigarette products.”

    A representative from Mayor Mike Johnston told Denver7.com that “we’re committed to protecting youth health through common sense measures, and Mayor Johnston would be in support of this initiative should Council pass it.”

    The ordinance does not make it illegal to use a tobacco product, with city representatives telling the council that a person would not be stopped and cited for using a flavored tobacco product.

    In 2021, the Denver City Council passed a similar ban, only to have it vetoed by then-Mayor Michael Hancock. The council came up one vote short of overriding the ban.

  • China: STMA Appoints New Deputy Director

    China: STMA Appoints New Deputy Director

    China’s State Tobacco Monopoly Administration (STMA) has appointed Liu Sanjiang as its deputy director, reports 2Firsts.

    Previously, Liu served as the director of the department of quality development at the State Administration for Market Regulation,

    This appointment follows a series of corruption investigations targeting senior STMA officials.

    The STMA is the country’s official regulatory body overseeing the tobacco industry and market, including NGPs such as e-cigarettes.

  • Bangladesh Readies to Ban E-cigarette Imports

    Bangladesh Readies to Ban E-cigarette Imports

    Bangladesh will ban the import of e-cigarettes and related products, reports bdnews24.

     According to a statement issued by the cabinet division, the health services division proposed to take urgent measures to ban the import of all products tied to the electronic nicotine delivery systems or e-cigarettes “to protect public health and keep future generations safe.”

     After the discussion, it was decided that e-cigarettes will be included in the list of banned products in the import policy order of the ministry of commerce.