States Introduce Surety Bond Requirements for Vaping (ENDS) Manufacturers to Curb Contraband Sales
Pennsylvania and Mississippi have become the first states to require surety bonds for vaping (ENDS) manufacturers to curb illegal sales.Summary
Pennsylvania and Mississippi have emerged as the first states to implement surety bond requirements for manufacturers of electronic nicotine delivery systems (ENDS). These regulations aim to ensure compliance with state tobacco laws and prevent the sale of illegal, uncertified, and contraband vaping products. The surety bond serves as a compliance mechanism to hold manufacturers accountable and can cover state legal fees in case of violations. Pennsylvania has set the bond amount at $50,000, while Mississippi requires a $25,000 bond, specifically for out-of-state manufacturers. Industry experts, such as Jason O'Leary of Surety Bonds Direct, anticipate that more states will adopt similar regulations following the legalization of cannabis.
(Source：The National Law Review)
