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Stricter Enforcement Needed on Illegal Vapes from China, Says BAT CEO

The influx of illegal vaping products from China is impacting the sales of legally compliant cigarette alternatives in the United States, according to Tadeu Marroco, CEO of British American Tobacco Plc (BAT). Marroco emphasized the necessity of imposing harsher penalties on those importing unauthorized vapes into the country. He noted, “The current lack of enforcement is diminishing the market for legal vapor products.”

BAT, a significant player in the global vaping market, including in the US with its Vuse brand, is awaiting a comprehensive review by the US Food and Drug Administration (FDA) of the vaping industry. This review aims to address the proliferation of fruit and candy-flavored products from China that appeal to younger users. Marroco stressed the urgency for the FDA to publicly clarify which products are permitted in the market and which should be removed, to curb the sale of illicit items exploiting the regulatory uncertainty.

Brian King, director of the FDA’s Center for Tobacco Products, stated via email that most unauthorized products are at risk of enforcement actions such as seizures, injunctions, or civil penalties. The FDA, alongside the US Department of Justice, has established a federal task force involving multiple agencies to combat the distribution of illegal e-cigarettes. By early June, the FDA had issued 1,100 warning letters to manufacturers, importers, and distributors of unauthorized tobacco products, including e-cigarettes, and imposed fines on over 55 manufacturers and 140 retailers.

In response to the ongoing issue, BAT has filed two complaints with the International Trade Commission, one concerning patent infringement and the other addressing the importation and marketing practices of illegal vapes. The company recently reported its first-half financial results, revealing that it may not achieve its £5 billion ($6.4 billion) revenue target by 2025 for its vaping, heated tobacco, and nicotine pouch products, citing the lack of stringent action against illicit products in the US market.

Marroco’s call for increased enforcement underscores the broader industry concerns about maintaining market integrity and protecting consumers from potentially unsafe products. The situation highlights the need for a clear regulatory framework to ensure that only authorized and safe vaping products are available to consumers.

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