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Canada News.Net
9 hours ago
- Business
- Canada News.Net
USPS crackdown on unregulated vapes adds to pressure on suppliers
LONDON, U.K.: The U.S. Postal Service has begun blocking business shipments of unregulated vaping products from at least one major distributor, stepping up enforcement against an industry already facing mounting legal and regulatory pressure. Letters reviewed by Reuters show USPS revoked the mailing exception for Demand Vape, a New York-based distributor, after New York City's Law Department provided evidence the company had shipped products without required U.S. Food and Drug Administration (FDA) authorisation and in violation of a local flavour ban. The July 15 letter informed Demand Vape that its local Buffalo Business Mail Entry office would no longer accept packages containing electronic nicotine delivery systems. The move is expected to benefit tobacco giants like Altria and British American Tobacco, which have long fought the sale of unauthorised vapes, most of which originate from China. While the FDA has authorised just 39 e-cigarette products, the U.S. market remains flooded with unauthorised devices. Demand Vape said it complies with the law and is contesting the revocation. "We reject any characterisation that paints Demand Vape as anything other than a transparent, lawful and reputable business," it said, describing the industry as operating in a "regulatory grey zone" with few authorised products meeting consumer demand. USPS did not respond to a request for comment. Since 2021, USPS has been barred from mailing vaping products directly to consumers internationally and in most other cases. Exceptions exist for domestic shipments between businesses, but these require a special "mailing exception" and compliance with all relevant laws. Other major carriers have similarly restricted service; FedEx does not ship vapes at all, and DHL only accepts approved business shipments. USPS has also provided New York City's Law Department with a list of other companies holding mailing exceptions so the city can review whether they are complying with the law, Eric Proshansky, deputy chief of the division of affirmative litigation, told Reuters. This could further reduce shipping options for the unauthorised vape trade, forcing reliance on smaller, more expensive carriers. British American Tobacco estimates the unauthorised U.S. vape market was worth about £6 billion (US$8.05 billion) last year. However, that market has been hit by a combination of new tariffs, seizures at U.S. ports, and a May crackdown in which the FDA sent warning letters to 24 distributors central to the supply chain. The actions have left many vape store shelves empty, according to Tony Abboud, executive director of the Vapor Technology Association, whose members include Demand Vape. He said the USPS ban will deal another blow to the sector. Court filings in a New York City lawsuit show that Demand Vape, one of the largest U.S. e-cigarette distributors, sells to roughly 5,000 retailers in 49 states. Evidence supplied by city attorneys to USPS included invoices documenting sales of unauthorised e-cigarettes, including brands the FDA has explicitly named as illegal.
TimesLIVE
a day ago
- Business
- TimesLIVE
USPS blocks shipping of illicit vapes in boost for Big Tobacco
The US Postal Service (USPS) has cracked down on distributors of unregulated vapes using its services for business shipments, letters reviewed by Reuters show, in a blow to a multibillion dollar industry that has dented Big Tobacco's sales. The letters, previously unreported, show the USPS wrote to major New York-based distributor Demand Vape, blocking it from using its services after New York City's (NYC) law department, which represents the city's government and officials in legal matters, provided evidence that its shipments broke laws. The USPS' action stands to benefit tobacco giants including Altria and British American Tobacco (BAT), which have for years battled against unregulated vapes, mostly from China. Unregulated vapes lack authorisation from the US Food and Drug Administration (DFA) required for them to be legally sold in the US, the world's largest market for smoking alternatives. The USPS revoked Demand Vape's mailing exception last month after it received evidence the company shipped vapes lacking FDA authorisation and that violated a local flavour ban, a letter from the USPS to the company, dated July 15, showed. 'Your local Buffalo business mail entry office will not accept any packages from Demand Vape that contain ENDS products,' the letter read, referring to electronic nicotine delivery systems, another term for vapes. Demand Vape said it complied with relevant laws and was contesting the revocation, adding the industry operates in a 'regulatory grey zone' with only a small number of FDA-authorised products that do not meet consumer demand. 'We reject any characterisation that paints Demand Vape as anything other than a transparent, lawful and reputable business,' it said. The USPS did not respond to a request for comment. So far, the FDA has authorised only 39 e-cigarette products. But unauthorised devices are widely available as authorities struggle to contain them. Under a 2021 law, the USPS is restricted from mailing vapes directly to consumers, internationally and in most other circumstances. The limited exceptions include domestic shipments between businesses, which need a 'mailing exception' and their shipments must comply with relevant laws. Some other large carriers, including FedEx, refuse to ship vapes. DHL only offers carriage for business shipments with prior approval. The USPS has provided NYC's law department with a list of other vape firms it has granted mailing exceptions so it can assess whether they should be challenged, in line with legal requirements, Eric Proshansky, deputy chief of the city's division of affirmative litigation, told Reuters. This could further limit the number of carriers available to the unauthorised vape industry. Other options, such as using smaller carriers or handling freight directly, tend to be more costly. BAT estimated the unauthorised vape market was worth about $8.05bn (R142.6bn) last year. It is, however, increasingly under pressure. This year's US import tariffs and seizures at ports have reduced unauthorised vape imports. The FDA also wrote letters to 24 US-based middlemen, including distributors crucial to the unauthorised vape market, as part of a crackdown in May. This has led to empty shelves in vape shops, said Tony Abboud, executive director of the Vapor Technology Association, which represents firms including Demand Vape. The USPS revocations will further damage US vape businesses, he said. One of the largest US e-cigarette distributors, Demand Vape sells to about 5,000 retailers in 49 states, according to 2024 filings in a NYC lawsuit against the company. The evidence city attorneys provided to the USPS included copies of invoices showing Demand Vape's sales of unauthorised e-cigarettes. Brands the FDA has specifically flagged as illegal to sell were among them, a separate letter reviewed by Reuters showed.
Time of India
a day ago
- Business
- Time of India
USPS blocks shipping of illicit vapes in boost for Big Tobacco
London: The U.S. Postal Service has cracked down on distributors of unregulated vapes using its services for business shipments, letters reviewed by Reuters show, in a blow to a multi-billion dollar industry that has dented Big Tobacco 's sales. The letters, previously unreported, show that USPS wrote to major New York-based distributor Demand Vape , blocking it from using its services after New York City's Law Department, which represents the city's government and officials in legal matters, provided evidence that its shipments broke laws. USPS' action stands to benefit tobacco giants including Altria and British American Tobacco, which have for years battled against unregulated vapes, mostly from China. Unregulated vapes lack the authorisation from the U.S. Food and Drug Administration that is required for them to be legally sold in the United States, the world's largest market for smoking alternatives. USPS revoked Demand Vape's mailing exception last month after it received evidence the company shipped vapes lacking FDA authorisation and that violated a local flavour ban, a letter from USPS to the company, dated July 15, showed. "Your local Buffalo BME Office will not accept any packages from... Demand Vape that contain ENDS products," the letter read, referring to electronic nicotine delivery systems, another term for vapes. Demand Vape said it complied with relevant laws and was contesting the revocation, adding the industry operates in a "regulatory grey zone" with only a small number of FDA-authorised products that do not meet consumer demand. "We reject any characterisation that paints Demand Vape as anything other than a transparent, lawful and reputable business," it said in a statement. USPS did not respond to a request for comment. LIMITED EXCEPTIONS So far, the U.S. Food and Drug Administration has authorised only 39 e-cigarette products. But unauthorised devices are widely available as authorities struggle to contain them. Under a 2021 law, USPS is restricted from mailing vapes directly to consumers, internationally and in most other circumstances. The limited exceptions include domestic shipments between businesses, which need a "mailing exception" and their shipments must comply with relevant laws. Some other large carriers, including FedEx, refuse to ship vapes. DHL only offers carriage for business shipments with prior approval. USPS has provided NYC's Law Department with a list of other vape firms it has granted mailing exceptions so it can assess whether they should be challenged, in line with legal requirements, Eric Proshansky, deputy chief of the city's division of affirmative litigation, told Reuters. This could further limit the number of carriers available to the unauthorised vape industry. Other options, such as using smaller carriers or handling freight directly, tend to be more costly. MOUNTING PRESSURE BAT estimated the unauthorised vape market was worth around 6 billion pounds ($8.05 billion) last year. It is, however, increasingly under pressure. This year's U.S. import tariffs and seizures at ports have reduced unauthorised vape imports. The FDA also wrote letters to 24 U.S.-based middlemen, including distributors that are crucial to the unauthorised vape market, as part of a crackdown in May. This has led to empty shelves in vape stores, said Tony Abboud, executive director of the Vapor Technology Association , which represents firms including Demand Vape. USPS revocations will further damage U.S. vape businesses, he said. One of the largest U.S. e-cigarette distributors, Demand Vape sells to some 5,000 retailers in 49 states, according to 2024 filings in a NYC lawsuit against the company. The evidence city attorneys provided to USPS included copies of invoices showing Demand Vape's sales of unauthorised e-cigarettes. Brands the FDA has specifically flagged as illegal to sell were among them, a separate letter reviewed by Reuters showed. ($1 = 0.7452 pounds)
