5 Laws Every Vape Company Owner in the U.S. Should Know

When you think about a vape shop, what comes to mind? Do you think of a place where you can buy the latest, greatest e-cigs, mods, juices, and accessories? Or maybe you think of a shop that offers a variety of edibles, concentrates, or topicals, like topicals of various colors, flavors, or strains? It’s likely that the first place you think about is a vape shop, since a vape shop is a shop that sells and services vapes (shops that sell vape products).

If you own your own vape shop or are the owner of a vape company and you haven’t been following the news about the FDA and vaping, then you are missing out on a huge opportunity for your business.

The industry known as vape is big business that is growing rapidly. Vapes, or “vaping,” are electronic devices that heat up a liquid called “e-liquid” until it vaporizes and becomes a mist. The vapors can then be inhaled, or breathed. E-liquids come in a variety of flavors, from sweet to fruity, and they often contain nicotine, which can be vaporized or ingested, depending on the user’s wishes.

It is always good to know the laws that govern the marketing, sale and use of vaping products, especially if you are a business in the e-cigarette industry. In the United States, the sale and use of vape pens, liquid nicotine, e-cigarettes, e-liquids, or the wholesale importation of these products is not without a whole list of legal requirements and guidelines. You need to make sure that your company and your employees are following the rules. This requires a thorough knowledge of the rules and regulations regarding age verification of customers, placement and display of products, sampling, online and mail orders, restricted store sections, etc. Like most laws in the United States, nicotine devices are subject to state and federal regulation. In some US states, vaping companies are considered manufacturers and distributors. This means that you will have to deal with additional rules and laws. Making sure you are compliant will save you a lot of delays, costs and fines. This article discusses five basic laws that you need to understand as a vape company in the United States. But before we dive in, first a general overview of the rules of vape.

Brief overview

word-image-3503 In the second half of December 2020, the budget package saw the light of day after being approved by Congress. The package included a Coronavirus Relief Act, but what would have interested most vape manufacturers was the 5,000 page document that was also in the package. This document was the Prevention of Online Sales of E-Cigarettes to Children Act. It has regulated several vape products, including dual-battery vape mods and more advanced vape rigs like the Tesla Punk Vape MOD. But that was just the tip of the iceberg, and these laws can easily go unnoticed if you’re not careful. Let’s take a closer look at five of them.

1.   An act to prevent the online sale of electronic cigarettes to children

President Trump signed the law into law in 2020. In the vape industry, this law is commonly referred to as the vape mail ban. However, vape manufacturers will feel the effects of the law banning online sales of electronic cigarettes to children in areas other than just mail order. Despite its popularity since December 2020, this law is not new. It was approved by the House of Representatives in early 2019 and by the Senate in July 2020 in a slightly different form. However, the Senate received a call to action from CASAA before the bill passed this summer. Overall, few companies and vape smokers are alarmed by the potential impact of this rollout without knowing the full implications.

2.   Prevention of all cigarette trade (PACT)

word-image-3504 As of the end of March 2021, all sellers of vaping products and companies that sell devices that dispense flavorings, aerosolized nicotine, or other substances that allow users to inhale them must comply with Prevent All Cigarette Trafficking (PACT) regulations. This law is also known as Jenkins’ law. It regulates conventional vaping products that deliver nicotine and non-nicotine vaping products that the government says contain cannabis oil. Failure to comply with the rules and regulations of the Jenkins/PACT Act exposes vaping businesses to heavy fines of $5,000 to $10,000 for each violation.

3.   FDA regulation of ENDS

Electronic nicotine delivery systems, also known as ESPs, are devices such as vape pens, e-cigarettes, vaporizers, e-pipes, and many others. All of these devices are non-combustible tobacco products. In 2016, the FDA issued a rule that expanded the scope of the PTC regulations to include tobacco products, including ENDS. Thus, the FDA controls the importation, advertising, sale, packaging, distribution, labeling and manufacture of all these products. The rules also apply to parts and components of ENDS. However, not all accessories are included. Here are some examples of these components:

  • Battery
  • Atomizer
  • Pattern press
  • Pattern
  • Clearomizer
  • Tank system
  • Dropper tip
  • Programmable software

4.   FDA tobacco regulations

Companies that manufacture, modify, produce, mix, repair, assemble, repackage, label, import or relabel ENDS must comply with the manufacturers’ regulations in addition to the first three laws. If your company falls into this category, the FDA considers you a tobacco manufacturer. Companies that import finished tobacco products must also comply, as must retailers or manufacturers of tobacco products. You must register your business and submit a list of products, advertisements and labels. Other information you must provide under the regulation includes the list of ingredients and dates.

5.   Protecting America’s Lungs and Reversing the Youth Smoking Epidemic Act

word-image-3505 In February 2020, the US House of Representatives passed a bill to combat the youth smoking crisis. The bill was titled Protecting American Lungs and Reversing the Youth Tobacco Epidemic Act of 2020. It bans most flavored tobacco products and vaping products, such as mint and menthol flavors. It also imposes taxes on nicotine-based e-cigarettes and impacts vaping businesses.

Supplement

One important fact should always be kept in mind: Laws and regulations may be changed at any time by new legislation, federal decisions, voter initiatives, Supreme Court decisions, or other accepted methods. It is therefore always necessary to follow the latest developments and to have up-to-date information. Understanding complex regulations and their impact on your business can often be a challenge. Therefore, in addition to your legal research, you may need a lawyer to clear your doubts.In the United States, regulating an industry to keep it from developing in a way that favors the industry at the expense of its customers is not a new idea. In fact, it dates back to the early days of U.S. railroads, when monopolies were created that allowed for incredible abuse of customers and the rail companies as a whole. Unfortunately, while the railroad companies were regulated by the federal government, the e-cigarette industry has been allowed to grow in a way that harms the vaping public by giving monopolies to companies that are trying to destroy the industry.. Read more about legal vaping age in all states and let us know what you think.

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