The ecig industry has experienced some of the fastest economic growth in the US market. Back in December of 2015, you may remember that congress was busy putting together and agreeing on a spending bill that would cover the income and expenses of the federal government for 2016. While there are many important parts to this $1.8 Trillion spending measure, we want to focus on one specific policy rider. A recent legislative provision was almost included in December’s spending bill and could have successfully saved 99 percent of ecig businesses from going out of business.
What do we mean? While Congress, the Food and Drug Administration (FDA) or the White House will not outright impose a direct law banning electronic cigarettes or personal vaporizer products in America, they can easily implement new costly regulations that would put most ecig companies out of business and have essentially have the same prohibition effect.
Many pro-vapor advocates fought to have the ecig rider we are referring to put and kept into the spending bill. Ultimately, at the last minute, it was taken out during negotiations between the two leading political parties. If the provision were kept, it would have changed the Food and Drug Administration’s (FDA) rules requiring all ecig products released after February 15, 2007 to undergo expensive Pre-Market Tobacco Applications (PMTA) processing. The PMTA process for one single vapor product will cost vapor businesses as much as $2-10 million. You can easily see how this type of expensive processing and added regulatory expenses can wipe out the ecig industry over night.
Since the vapor industry is fairly new, only gaining broad popularity in the past five years, most ecig products in the U.S. market would fall under the FDA’s PMTA process requirement. That means that the delicious V2 Tobacco or Menthol vapor flavors that many of you have been vaping for the past few years, could be forced off the market. Although we sell to millions of customers worldwide, V2 remains one of the only major ecig brands not owned by Big Tobacco. If we are required to spend tens of millions of dollars simply to have the FDA review and approve each vapor flavor, it could put V2 and thousands of other small companies out of business. Ultimately, the only companies that would be left standing these steep regulatory fees would be big multi-billion dollar tobacco companies.
At V2, we believe quality and customer satisfaction are of the utmost importance. We understand that federal regulations are ideally supposed to protect American consumers. In reality, if this PMTA processing application becomes law, it could have the reverse effect. Americans who no longer have access to their preferred ecig products may revert back to combustible tobacco. A decision like the one will impact more than just business owners and consumers. Thousands of Americans employed by the ecig industry will likely lose their jobs and state tax revenues will significantly decline. The triple down effect could be overwhelming and for these reasons, we continue to advocate for common sense, fair federal regulations that protect consumers and give reputable vapor businesses the opportunity to thrive in the American economy.
We’d love to hear from our fellow V2 vapers in the comment section on this topic. Tell us what you think about the impending federal ecig regulation and make sure to share this blog post with your friends on Facebook and Twitter!