Shopify Inc will ban all vapes from its platform as soon as this week following pressure from a group of US state attorneys general aiming to curb sales of illegal e-cigarettes online, according to two sources familiar with its plans.
US Crackdown on Illegal Vapes
The Ottawa-based company provides the underlying infrastructure that lets millions of merchants operate and scale e-commerce channels. It has been in talks since last year with a bipartisan coalition of 25 state attorneys general, who have been pushing Shopify to do more to clamp down on a booming market for vapes that lack the legally required licence for US sales, or violate other laws.
Unlicensed vapes, usually made in China, are widely available in the US both online and in vape shops, convenience stores or gas stations despite being illegal to import or sell. The expected Shopify ban, first reported by Reuters, would mark the most significant win yet for the state law enforcement officials, who have been targeting the industry’s infrastructure over concerns that illegal vapes put public health at risk.
A Shopify spokesperson said in a statement, “We’ve always prohibited illegal activity and take action when we become aware of merchants violating our policies,” adding such internal decisions take into account global legal frameworks and are not based on feedback from any one group.
The US Food and Drug Administration has to date granted marketing authorisation to just 45 e-cigarette products, mostly tobacco-flavoured — an approach that big tobacco companies such as British American Tobacco argue has stifled the legal market and fuelled illegal sales.
Impact on E-Commerce Sales
The expected ban could disrupt e-commerce sales and have a “chilling effect” on sellers, one of the sources said. The illegal US market for vapes is currently worth some $9 billion, according to British American Tobacco, whose US business has been hit hard by their proliferation.
Credit-card issuer Mastercard warned partners responsible for adding merchants to its network that unlicensed vape sales violate its standards, according to a global notice issued to partners in May and obtained by Reuters.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
