Avoid fines up to $450,000 for non-compliant tobacco product sales
CHS Payment Solutions has recently been notified of potential significant penalties for retailers selling non-regulated or unauthorized tobacco products. These penalties are tied to increased regulatory enforcement by federal and state authorities around the sale of unauthorized e-cigarettes, vapes, and other electronic nicotine delivery systems (ENDS). Federal law requires that certain e-cigarette products receive authorization from the U.S. Food and Drug Administration (FDA) before they can be legally marketed or sold.
Penalties for selling these products can result in fines of up to $450,000 per location, per enforcement period, making it critical for retailers to review current product offerings and compliance practices immediately.
Recommended actions for retailers:
Confirm that all e-cigarette and tobacco products sold in-store meet FDA authorization requirements and no unauthorized or non-compliant products are being sold
- Adhere to all federal, state, and local laws governing the sale, marketing, and distribution of these products
- Maintain controls to prevent the sale of restricted or illegal products
Staying compliant requires ongoing diligence. Retailers are responsible for reviewing and adhering to all applicable state and local regulations in addition to federal requirements. If you have any questions, please contact pssupport@chsinc.com, or refer to the resources below.
FDA resource links:
-
- FDA ENDS List: E-Cigarettes Authorized by the FDA
- FDA Advisory Page: Enforcement Actions Against Industry for Unauthorized Tobacco Products
- FDA Searchable Database: Tobacco Products
