2FIRSTS | NATO Executive Director David Spross Sees U.S. Vape Regulation Improving, Calls for More PMTA Authorizations and Warns of 2027 State Tax Pressure
Summary
David Spross, executive director of the National Association of Tobacco Outlets (NATO), said recent U.S. regulatory developments have improved the outlook for tobacco and nicotine retailers while calling for more FDA PMTA authorizations, greater transparency and stronger enforcement against unauthorized vapor products. FDA issued new ENDS authorizations in 2026, including four Glas e-liquid pods in May—its first authorization of non-tobacco, non-menthol flavored ENDS—and three JUUL2 products in August. Unauthorized e-cigarettes remain a major enforcement issue, and state vapor product directories have expanded to 17 states as of August 2026, with Pennsylvania and Iowa approaching implementation deadlines and eligibility standards varying by state. Excise taxes and flavor restrictions also remain prominent state-level pressures: Spross described 2026 tax activity as more manageable than 2025 but expects proposals to pick up again in 2027 after the election cycle. Meanwhile, retail mix continues shifting beyond cigarettes toward nicotine pouches, vapor and heated tobacco, with cigarettes falling to 18.8% of in-store sales in 2024 from 30.9% in 2015.
(Source:2Firsts)