Vaping FAQs

how will new laws change pricing for the vaping industry

by Bret Ebert Published 2 years ago Updated 1 year ago
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What does the FDA’s new vape law mean for the industry?

And open-system products sold in vape shops and online continue to make up a big chunk of the vaping market. The law will force thousands of products off the market that were launched by small e-liquid manufacturers in the wake of last year’s FDA mass-denial of PMTAs for flavored products. More hammers for the FDA.

What does the new smoking ban mean for vaping?

Once this bill becomes law, smoking in a public indoor area will be outlawed, as will smoking at home or in a car while in the presence of a non-smoker or child. The vaping industry has argued for years that it shouldn't be grouped with ‘combustion’ and ‘burnt tobacco’ products.

Is the vape industry declining?

Around the world, and even in the US still, however, the vape industry shows no signs of decline. An astounding 95% of all vape products and tech come from a single city in China to supply the world’s vaping boom.

What does the FDA’s Deeming Rule mean for vaping?

In 2016, the FDA’s Deeming Rule amended the Act to include vaping products that use tobacco-derived nicotine. Now Congress has given the agency authority over products that have no connection to tobacco at all.

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Why are vape prices going up?

Gov. Gavin Newsom has signed into law a new excise tax on electronic cigarettes. Amid concern over widespread teen vaping, Gov. Gavin Newsom on Monday approved a new 12.5% excise tax on electronic cigarettes to be paid by California consumers to boost public health and education programs.

How does the FDA regulate vaping?

FDA PRIORITIZES ENFORCEMENT AGAINST CERTAIN ILLEGALLY MARKETED ENDS. FDA's scientific review of vaping products ensures they are appropriate for the protection of public health. The agency continues to monitor the marketplace to protect youth from certain illegally marketed ENDS products.

How much money do vaping companies spend on advertising?

Finally, the report provides detailed information on advertising and promotional expenditures by domestic e-cigarettes manufacturers between 2015 and 2018. The Commission found that spending on advertising and promotion more than tripled in three years, from $197.8 million in 2015 to $643.6 million in 2018.

What is current Act laws regarding the sale and vaping of e-cigarettes?

Illegal sale of e-cigarettes containing nicotine From 1 October 2021 penalties increased. The maximum penalty is $1,650 or 6 months prison, or both.

Is Joe Biden getting rid of nicotine?

The Biden administration signaled Tuesday that it will develop a proposed rule to establish a maximum nicotine level in cigarettes and other tobacco products that will essentially lower the amount of nicotine in products available in the US.

Will the FDA Ban vaping?

After a two-year review, the Food and Drug Administration announced Thursday it will ban all vaping and e-cigarette products sold by Juul. It's part of a series of more aggressive moves by the FDA to target vaping and smoking.

How profitable is selling Vapes?

The answer is simple – the demand is increasing alongside the number of businesses in the industry. Many of the shops are enjoying average success, while some get the biggest slice of the cake. The average revenue of a vape shop can go around $26,000 with top earners making $39.000 per month.

What is the financial cost of vaping?

Over the course of a year, vaping can cost you nearly $1,000 extra on your insurance policies — no small sum, especially if you're working to pay down debt or running your house on a tight budget.

How much profit does a vape store make?

An average vape shop reports around $26,000 in monthly sales or an annual profit of around $120,000. The truly successful ones get a much bigger piece of the cake. That being said, vape shops can be really profitable as long as they are managed properly.

What states are banning e cigs?

U.S. bans on flavored vapes and online salesArkansas – online sales ban. ... California – flavor ban (on hold until 2022) ... Maine – online sales ban. ... Massachusetts – flavor ban. ... New Jersey – flavor ban. ... New York – flavor ban + online sales ban. ... Oregon – online sales ban. ... Rhode Island – flavor ban.More items...•

Should I punish my child for vaping?

Now that you are aware of the hazards brought by e-cigarettes, you have every right to punish your teen for vaping. It does not matter if they are only using it for recreational purposes. Vaping is still addictive and damaging. Some ways to punish your child are scolding and grounding them.

Is Amazon allowed to sell vapes?

Amazon policy prohibits the listing or sale on Amazon of electronic cigarettes and related products, such as batteries and e-liquid juice, regardless of whether they contain nicotine.

Does the FDA apply to vaping products?

The Food and Drugs Act (FDA) applies to vaping products that make a health claim (help quit smoking). This includes products that contain nicotine or any other drugs as defined by the FDA.

Does the FDA have the authority to regulate e cigarettes?

Starting in 2016, the agency was able to begin regulating e-cigarettes—this time as tobacco products. Under those regulations, companies must submit an application to FDA to keep selling existing e-cigarette products or to sell new products.

Does the FDA regulate nicotine?

A new federal law gives FDA the authority to regulate tobacco products containing nicotine from any source. This law took effect April 14, 2022, and after July 13, 2022, any new non-tobacco nicotine (NTN) product that has not received premarket authorization from FDA cannot be legally marketed.

What is the new excise tax on vaping?

Also on June 1, a new excise tax of 75% of the wholesale price of vaping products – both vaping solutions and devices – will bring the products in parity with cigarette prices. The excise tax requires the establishment of a collection system that, among other requirements, will mandate that retailers acquire a state license to sell vaping products.

How much of your income is derived from the sale of tobacco or vape products?

Smoking bars must be adult-only (21-plus) and must demonstrate to the DOR quarterly that at least 51% of their income is derived from the sale of tobacco or vape products. The new state law permits smoking bars to continue to sell flavored products, but only for on-premise use.

How many cities in Massachusetts have a flavor ban?

In Massachusetts, 146 cities and towns have the “original” federal-court-tested flavor ban policy in place that exempts from the policy qualifying adult-only retail tobacco stores and smoking bars as well as exempting mint, menthol and wintergreen as flavors.

How much nicotine is in a vape?

Non-age-restricted retailers, such as convenience stores and gas stations, can sell unflavored or tobacco-flavored vape products with a nicotine strength that does not exceed 35 milligrams per milliliter.

What is the new law in Massachusetts?

New law will change availability of smoking and vaping products. On Nov. 27, Gov. Charlie Baker signed a law that will profoundly change the types of traditional tobacco and vaping products available at Massachusetts retailers. The new policies will become effective at different times.

Does MassHealth cover tobacco cessation?

On Jan. 1, private health insurers, the Group Insurance Commission and MassHealth will be required to provide coverage for tobacco cessation counseling and all generic tobacco cessation products approved by the U.S. Food and Drug Administration, with at least one product available with no out-of-pocket costs for the consumer.

Can you sell flavored vapes in Massachusetts?

No person – retailer or manufacturer – may sell any flavored vape product via the internet to a Massachusetts consumer, but non-flavored vape products that do not exceed 35 milligrams of nicotine per milliliter may be sold with enhanced age-verification systems.

Which country has the most restrictive vape laws?

Asian countries have the most restrictive vape laws in the world.

Where is vaping growing?

Vaping is relatively new and growing in the Central American region.

How much nicotine is in a vape cartridge?

Current legislation specifies that no nicotine cartridge or vape juice can contain more than 20mg of nicotine . Juul, for example, offers 5% nicotine per 0.7mL pod (by weight). This translates to about 50mg of nicotine.

How many teens use vapes in 2015?

Among the findings, 15% of teens reported using vapes in 2015, which incited much of the concern from federal regulatory bodies. Since then, the FDA has cracked down on vape manufacturers and increased fines for retailers caught selling to underage users.

How old do you have to be to vape?

Local legislators in areas like California, New York, and states across the midwest have also enacted regulations to combat teen vaping. Some locales raised the legal vape age to 21 to match their smoking age, and others have banned flavored vape juices to keep products from appealing to children.

Which country has the largest vape market?

US. The United States is, without a doubt, the largest and fastest growing vape market in the world. This is largely thanks to the simplicity and ubiquitous presence of products like the Juul. It is also due to a lack of legislation to monitor the advertising and sale of these products to minors.

Where is vaping banned in South America?

We were unable to find reliable sources on statistics of use in other Central and South American countries. Though, a number of countries in South America, such as Brazil, Venezuela, and Argentina have banned vaping altogether. Other South American countries have absent or unclear legislation about vaping.

How old do you have to be to vape?

With the new vaping laws, e-cigarettes are treated just like tobacco. This means that vape shops must card anyone who appears to be under age 27. This goes for online vendors as well: you’ll find a new age verification process that is a little more involved on all US-based websites.

Do shop sold mods disappear?

They’ll be able to tell you how to do it, but you’ll have to complete the process by yourself. Also, shop-sold custom mods will disappear.

Can you discuss the benefits of vaping?

6.) Cannot discuss benefits of vaping. One of the saddest results of the new FDA vaping regulations is that retailers cannot disclose the benefits of electronic cigarettes, or the advantages of vaping over smoking. Despite mounting research that supports e-cigarettes, the FDA regulations prevent shop owners and employees from sharing the FACT that e-cigs contain significantly less carcinogens than traditional cigarettes, or that vaping has been proven to be an effective tool to help smokers quit; more effective than the patch, pills and gum!

Does the FDA run undercover checks?

The FDA also plans to run undercover checks at both brick-and-mortar and online vapor retailers, so don’t be surprised if service is refused if you don’t have your ID with you, or fail whatever online verification process is required when shopping online. The fines for non-compliance are steep.

Do you have to have age verification to buy e-cigarettes?

As mentioned above, age verification is now required before any online purchase, so expect a slightly longer checkout procedure on all US-based websites. And you’ll see similar issues with reduced inventory and higher pricing, since the FDA’s pre-approval process will be costly to manufacturers and limit new product releases.

Do vape shops run low on juice?

House juices are still available, but first come first serve and once they’re gone, they’re gone. Most locally-owned vape shops will not attempt to go through the long and expensive approval process to sell in-house juice. Some shops could run low on commercially available juices too, since commercial providers may need time to adjust to the regulations.

When did the FDA regulate vaping?

The agency gained the power to regulate tobacco products in 2009, when then-President Obama signed into law the Family Smoking Prevention and Tobacco Control Act. But at that time, e-cigarettes weren’t terribly popular, and they were left out of the FDA’s regulatory rules. The agency didn’t finalize a rule for regulating vaping devices—which heat and aerosolize nicotine e-liquids, hopefully providing a less-dangerous version of a traditional cigarette—until 2016. At that point, the agency informed companies with products already on the market that they would have to retroactively put together premarket tobacco product applications (PMTAs) to ask for permission to keep selling them in the U.S.

When did vaping come out?

E-cigarettes have been sold in the U.S. since 2007. Why is the FDA acting now?

How many high schoolers vape in 2020?

Then there are the impossible-to-ignore youth vaping numbers. As of 2020, about 20% of U.S. high school students said they had vaped in the past month, most often choosing products—like Juul’s—that use pre-filled e-liquid cartridges. That’s actually down from the 27.5% who said so in 2019—perhaps a reflection of pandemic isolation and tighter regulations on e-cigarettes, among other factors. In 2019, the Trump Administration raised the minimum age of tobacco sale to 21, and in 2020, banned the sale of e-liquid cartridges in all flavors except menthol and tobacco, unless and until they receive FDA authorization.

What does the FDA decide about e-cigarettes?

The FDA’s decisions will technically come down to whether each e-cigarette product in consideration is “appropriate for the protection of public health” —the agency’s standard for assessing whether it has a net positive or negative effect on the nation’s public health. Crucially, the agency will assess each product’s potential effect on the entire U.S. population, not just adult smokers.

Is Juul a teenager product?

Juul has repeatedly denied that it purposely targeted teenagers and says its product is meant only for adult smokers. In 2019—apparently anticipating action from the FDA—Juul discontinued the sale of all flavors except menthol and tobacco. That year, it also introduced a new age-verification system in retail stores, and suspended almost all of its U.S. advertising. “While millions of adult smokers have converted to our products from cigarettes, we will only be trusted to provide alternatives to adult smokers if we continue to combat underage use, respect the central role of our regulator and build on our shared commitment to science and evidence,” a Juul spokesperson said in a statement.

Can vaping go back to smoking?

On the other hand, vaping industry representatives and pro-vaping researchers warn that adult smokers may go back to deadly traditional tobacco cigarettes if the FDA clears the market of popular e-cigarettes. “To date, the singular focus of U.S. policies on decreasing youth vaping may well have reduced vaping’s potential contribution to reducing adult smoking,” 15 past presidents of the Society for Research on Nicotine and Tobacco wrote in a recent American Journal of Public Health article.

Is vaping a tobacco product?

(If nicotine is lab-made and not derived from actual tobacco, it is technically not a tobacco product, Vapor Salon and others argue.) “They made it a game of chess with all of our pieces already captured and expected us to play along and be happy about it,” Vapor Salon wrote in the post.

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Us

Canada

Central & South America

Asia

UK

European Union

Oceania & Africa

Conclusion

  • On a global scale, vaping is on the rise. More countries face inclusive or refined laws to include an increased awareness of their vaping populaces. Major brands have gone international in recent years. The world shouldbe readyto adjust to this expansive trend, and the opportunity to quit smoking that comes with its rise. More people are taking up ...
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