E-commerce platform Shopify Inc. will prohibit all vape product sales in the United States starting this week, regardless of their authorization status, following sustained pressure from state attorneys general.
The ban marks a victory for state law enforcement officials who have targeted the infrastructure supporting illegal vape sales, a market estimated at $9 billion by British American Tobacco.
Shopify’s decision came after a bipartisan coalition of 25 U.S. state attorneys general pressed the company for two years to address the sale of unauthorized vaping devices on its platform.
Daniel Roch, a spokesperson for the coalition, said the attorneys general had specifically urged Shopify to remove products that lacked U.S. Food and Drug Administration (FDA) authorization.
The move by Shopify mirrors actions taken by other financial service providers, with Mastercard Inc. recently warning its partners that facilitating transactions for unauthorized vape products violates its standards and could lead to investigations and fines.
The FDA has been working to regulate the vape market, but many products continue to be sold without the necessary agency approvals.
Industry observers noted that the ban could disrupt the supply chain for many vape retailers who rely on Shopify’s platform for their online storefronts and payment processing.
The e-commerce giant provides the underlying technology for hundreds of thousands of online stores, offering services ranging from website hosting to payment processing and shipping tools.
Companies like Juul Labs Inc. have faced intense scrutiny over their marketing practices and the widespread use of their products among underage individuals.
The pressure on e-commerce platforms and payment processors highlights a broader regulatory push to curb the availability of unauthorized vaping products across the United States.
Source: Abondance
