Cannabis business owners should take note of the risk exposures highlighted by the vaping crisis, examine their risk management protocols, align with an expert risk advisor to keep a watchful eye on emerging risks, and review carefully their insurance coverages and all exclusions to make sure they are protected. Looking Ahead
Full Answer
Can a small vape shop go bankrupt?
Many small vape shops argue that they risk going bankrupt if they comply with the agency’s orders, which have severely depleted their legal inventory. Some are exploring the use of synthetic nicotine, a costly alternative that falls outside of FDA’s current regulatory authority.
Should vape shops sue the FDA?
In the meantime, vape shops that are halting product sales in the wake of FDA’s recent decisions are considering whether to sue the agency. “In our association, the biggest thing that we’re hearing is a desire to pursue any available litigation avenues,” said Amanda Wheeler, the president of the American Vapor Manufacturers Association.
How has the pandemic affected the vaping industry?
Tony Abboud, executive director of the Vapor Technology Association, a trade group that represents e-liquid manufacturers, vape shops and other vaping professionals, maintains that vaping companies have "stepped up" during the pandemic to fill a demand for products like hand sanitizer.
Are vaping ads helping or harmful to health?
In some cases, vaping ads have addressed health concerns head-on, with one claiming the increased risk of vaping was a "myth" and that "misinformation is spreading faster than the virus itself." A different company shared an Instagram photo of factory workers in China wearing protective gear.
What is the financial impact of vaping?
The vapor product industry is an important part of the US economy. About $8.1 billion in vapor sales lead to 133,600 jobs and $22.1 billion in economic activity. About 35,000 of these jobs are held by people working for the over 9,850 independent adult-only, retail vape shops located across the country.
What are some marketing strategies used by vaping companies?
4 marketing tactics e-cigarette companies use to target youthOffering scholarships. ... Creating a buzz on social media. ... Sponsoring music festivals and events. ... Introducing appealing flavors.
What Vapes are the FDA banning?
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.
What do you think can be done to prevent youth using vaping products?
Reduce Young People's Exposure to E-cigarettesRestrict E-cigarette Use Around Young People. Don't let anyone use e-cigarettes or other tobacco products around young people. ... Visit Tobacco-Free Locations. ... Ensure School is Tobacco-Free. ... Make Your Home Tobacco-Free. ... Be an Example.
Who is the target market for vaping?
The research highlighted that e-cigarettes were being targeted at two distinct consumer groups: The committed smoker, Young social smoker or non-smoker.
What is JUUL marketing strategy?
In 2015, JUUL launched its controversial Vaporized marketing campaign, which promoted the product using models and bright color schemes. The company spent more than $1 million to market its product through social media channels. JUUL has denied its early marketing campaign was directed to young teens.
Can Juul still be sold?
A federal court has temporarily put on hold an FDA ban against the company's vaping products. Juul can continue to sell its electronic cigarettes, at least for now, after a federal appeals court on Friday temporarily blocked a government ban.
Why did the FDA ban Juul?
Earlier this week, the Food and Drug Administration banned Juul from selling its popular vaping device, tobacco and menthol flavored cartridges, citing insufficient data on health and safety.
Can Juul pods still be sold?
(CNN) The US Food and Drug Administration has ordered Juul Labs Inc. products to be removed from the US market as the agency issued marketing denial orders for its vaping devices and pods. "As a result, the company must stop selling and distributing these products.
What are some solutions to vaping?
Plan aheadidentify some alternative coping skills.tell loved ones and enlist support.get rid of vaping products.buy gum, hard candies, toothpicks, and other things you can use to help fight the urge to vape.talk to a therapist or review online resources.practice quitting by doing a “test run” a day or two at a time.
How can you encourage the youth to avoid smoking?
Help your teen make a planKnow your reasons. Ask your teen to think about why he or she wants to stop smoking. ... Set a quit date. Help your teen choose a date to stop smoking.Avoid temptation. ... Be prepared for cravings. ... Consider stop-smoking products. ... Seek support.
How can we reduce smoking in society?
Prevention can take the form of policy-level measures, such as increased taxation of tobacco products; stricter laws (and enforcement of laws) regulating who can purchase tobacco products; how and where they can be purchased; where and when they can be used (i.e., smoke-free policies in restaurants, bars, and other ...
The Centre of Disease Control and Prevention has updated its stance on E-Cigarette and Vaping Associated Lung Injuries (EVALI), stating that it is no longer advising people to refrain from all vaping products
When we last checked in on the Vape Crisis in October, it had spread to 46 US states, leading to more than 850 reported cases and 12 deaths. The disease primarily targeted men in their late teens to early 20s, with all victims reporting heavy usage of nicotine or THC vaping products.
From Crisis to Cataclysm
Unfortunately, the situation has only become more dire since then, as legal vape revenues have continued to plummet across the US.
What Happens Next?
At this point, it's still not entirely clear how the Vape Crisis will shake out in 2020 and beyond. However, there are a number of important factors which will play a substantial role in determining how the market responds.
1. Preventing Online Sales of E-Cigarettes to Children Act
President Trump signed this Act into law in 2020. In the vaping industry, this act is commonly called the “vape mail ban.”
2. Preventing All Cigarette Trafficking (PACT)
All vendors of vapor products and businesses that deal in devices that deliver flavor, the nicotine from an aerosolized solution, or other substances that enable users to inhale will have to comply with Prevent All Cigarette Trafficking (PACT) from late March 2021. This law also goes by the name Jenkins Act.
3. FDA Regulation of ENDS
Electronic nicotine delivery systems, otherwise termed ENDS, are devices such as vape pens, electronic cigarettes, vaporizers, and e-pipes, among many others. All these devices are non-combustible tobacco products.
4. FDA Tobacco Regulations
Businesses that produce, modify fabricate, mix, fix, assemble, repack, label, import, or relabel ENDS must also abide by the requirements for manufactures, in addition to the first three laws.
5. Protecting American Lungs And Reversing the Youth Tobacco Epidemic Act
In February 2020, the U.S House of Representatives approved a bill to tackle the youth tobacco crisis. The name of this bill was the Protecting American Lungs and Reversing the Youth Tobacco Epidemic Act of 2020.
What is the vape mail ban?
1. Preventing Online Sales of E-Cigarettes to Children Act. President Trump signed this Act into law in 2020. In the vaping industry, this act is commonly called the “vape mail ban.”. However, vape companies will feel the effects of the Preventing Online Sales of E-Cigarettes to Children Act reaching past the postal delivery.
When will vaping laws be in place in 2021?
5 Laws Every Vape Company Owner in the U.S. Should Know. June 4th, 2021. It’s always an advantage to know the vaping laws governing the marketing, sales, and use of vape products, especially if you’re a company in the e-cigarette industry. In the U.S, the sales and use of vape pens, liquid nicotine, e-cigarettes, e-liquids, ...
What are the regulations for manufacturing tobacco products?
FDA Tobacco Regulations . Businesses that produce, modify fabricate, mix, fix, assemble, repack, label, import, or relabel ENDS must also abide by the requirements for manufactures, in addition to the first three laws. If your company falls into this category, the FDA considers you a tobacco product “manufacture.”.
When will Pact stop smoking?
Preventing All Cigarette Trafficking (PACT) All vendors of vapor products and businesses that deal in devices that deliver flavor, the nicotine from an aerosolized solution, or other substances that enable users to inhale will have to comply with Prevent All Cigarette Trafficking (PACT) from late March 2021.
Is vaping a manufacturer or retailer?
Certain states in the U.S consider vaping companies to be manufacturers and retailers. What this implies is that you’ll have to deal with additional rules and laws. Ensuring that you’re compliant will save you a lot of delays, fees, and fines. This article covers five essential laws you should understand as a vape company in the U.S.
Do vape pens have to be regulated?
In the U.S, the sales and use of vape pens, liquid nicotine, e-cigarettes, e-liquids, or bulk import of such products aren’t without a list of requirements and regulatory guidelines. You need to ensure compliance for your company and employees. This calls for an in-depth understanding of the rules and regulations surrounding customer age ...
Does the FDA regulate tobacco products?
The FDA in 2016 concluded a ruling that extended CTP’s regulatory domain to cover tobacco products, including ENDS that fall under the category of tobacco products. Hence, the FDA controls the import, advertising, sale, packaging, distribution, labeling, and manufacture of all such products. Its regulations also cover the parts and components ...