Iowa Attorney General Brenna Bird is leading a coalition of 13 state attorneys general in a letter urging major credit card companies to stop processing transactions tied to illegal vape sales, her office said on April 15.
The attorney general said illegal vaping products, largely manufactured in China, account for most of the U.S. vape market and generate more than $11 billion in annual sales.
“Illicit e-cigarettes are sold in more than 100,000 retail locations nationwide, including gas stations, independent convenience stores and vape shops,” the letter said.
The attorneys general said the products are distributed through payment networks operated by financial institutions.
“Credit card companies need to work with us to stop the flow of these illegal vapes,” Bird said in a statement, citing flavored products such as cotton candy and blue raspberry.
The attorney generals asked Visa, Mastercard, American Express and Discover to identify and remove merchants selling illicit vape products and report their enforcement efforts.
The letter also cited a past collaboration involving state attorneys general and a federal agency to curb illegal online cigarette sales, which helped lead to the 2009 Prevent All Cigarette Trafficking (PACT) Act.
“In 2005, State Attorneys General and the Bureau of Alcohol, Tobacco, Firearms and Explosives successfully collaborated with payment card networks to establish a joint initiative that curtailed the illegal sale of cigarettes over the internet—an effort that eventually led to the enactment of the PACT Act,” the letter said.
The letter includes attorneys general of Alabama, Arkansas, Georgia, Indiana, Kentucky, Montana, Nebraska, North Dakota, South Carolina, South Dakota, Utah and West Virginia.
The National Association of Convenience Stores (NACS) saidillicit e-cigarettes imported from China are harming U.S. retailers. Some estimates suggest the products make up more than 80% of the market, NACS said in a letter sent April 14 to the Office of the U.S. Trade Representative (USTR). NACS urged the USTR to help lead a coordinated government approach to “eradicating this dangerous, illicit market.”
To date, the Food and Drug Administration said there are 41 e-cigarettes authorized by the agency. These are the only e-cigarettes that may be lawfully sold in the United States.
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