Shopify to ban vapes as US authorities crack down on illegal e-cigarettes industry
Summary
Shopify Inc is set to ban all vape sales from its platform this week, responding to pressure from a bipartisan coalition of 25 U.S. state attorneys general. The move targets the booming market for illegal e-cigarettes, which lack required licenses and pose public health risks. The ban, expected to impact online sales significantly, aims to curb the proliferation of unlicensed vapes, a market worth billions. The U.S. Food and Drug Administration has granted marketing authorization to just 45 e-cigarette products, mostly tobacco-flavored, an approach that big tobacco companies argue has stifled the legal market and fueled illegal sales. E-commerce is a more important channel for illegal vapes, though they are also mostly sold in brick-and-mortar stores. Separately, Mastercard warned partners responsible for adding merchants to its network that unlicensed vape sales violate its standards.
(Source:The Economic Times)