FDA Seizes 1.4 Million Fake Disposable Vapes
March 12, 2024Section | Link to Section |
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FDA | Did the FDA find any fake e-cigarettes? |
Investigations | Investigations taking months to halt fewer than 1% of sales |
Disposable Vaporizers | Further FDA actions regarding disposable vaporizers |
In the most recent battle in the FDA's assault against disposable vapes , the agency and customs inspectors have joined forces to seize 41 shipments of goods meant for American retail shelves. According to the government, it confiscated 1.4 million devices that retailed for $18 million.
In what the FDA called a "three-day joint operation," a group of FDA and U.S. Customs and Border Protection (CBP) officers confiscated the products at Los Angeles International Airport.
However, a business insider involved in the import of several of the brands the FDA seized claims that a large number of the disposable vapes that were seized were probably fake goods.
Did the FDA find any fake e-cigarettes?
A news release from the FDA stated that products from Lost Mary, Funky Republic, RELX Pod, IPLAY Max, and Elf Bar disposables were among the items found in the seized shipments. A source close to the FDA who wished to remain anonymous stated that while other brands were also taken, a significant amount of the total was made up of Elf/EB, Funky Republic, and RELX items.
However, Elf Bar parent company IMiracle hasn't sold Elf Bar-branded disposables to the US since February 2023, when the business got involved in a trademark battle, according to Vaping360's industry source. At that point, IMiracle started selling Elf Bar goods in the United States under the EBDESIGN trademark. Later, the EBCREATE brand was introduced. The source told Vaping360 that none of the intercepted shipments were headed for Elf Bar distributors in the United States who had been approved by IMiracle.
Our industry source further states that the authorized manufacturer no longer uses the Funky Republic name.
Furthermore, the market leader in China for vapes, RELX, is not active in the United States. Industry sources claim that any RELX product supplied here need to be instantly regarded as fake. (The business is able to lawfully sell goods in Canada.)
The FDA press statement suggests that the mentioned manufacturers are in charge of the shipments, even though it doesn't state clearly that the products confiscated were authentic Elf Bar/EB, Funky Republic, and RELX devices that were transported from those manufacturers' factories. Prior to disclosing the airport operation, the FDA does not appear to have made any effort to confirm the legitimacy of the confiscated products, and there is no indication in the press release that the products might be fake. The anonymous FDA official did acknowledge that there was a chance that counterfeit goods were included in some of the 41 shipments that the agency had intercepted.
It's possible that the FDA unwittingly did a great deal of good to legal disposable vape importers and producers. Disposable vapes that are counterfeit pose a serious threat to the business as, in addition to competing with genuine goods in stores for customers, they are frequently constructed with inferior components and poor craftsmanship, harming the brands of the real manufacturers. Manufacturers of disposable items go to considerable efforts to inform customers about the differences between authentic and fake vapes.
Investigations taking months to halt fewer than 1% of sales
A successful operation was achieved, according to the FDA, after the FDA-CBP team "worked for months to review shipping invoices, identify potentially violative incoming shipments, and complete other investigative work."
Convenience store and gas station sales in the United States were expected to have surpassed $2 billion annually in August 2022 by Chicago market research firm IRI. Less than one percent of yearly sales, or around three days' worth of popular vapes, would be accounted for by the FDA seizures, even if there has been no market growth since last year and disregarding sales from online and vape shops.
FDA Commissioner Robert Califf declared, "The FDA is committed to continuing to stem the flow of illegal e-cigarettes into the United States." Dishonest businesses make every effort to import illicit tobacco products that appeal to young people into the nation. The FDA will continue to be watchful and work with our federal colleagues to halt these imports before they reach the hands of the children in our country.
Further FDA actions regarding disposable vaporizers
The FDA revealed the day before that it had sent warning letters to eleven online merchants for selling unapproved disposable vape pens. This was the same day as the news of the airport seizures.
According to an FDA news release , the agency cited the online companies for offering different mixes of the Lost Mary, Funky Republic/Funky Lands, Elf Bar/EBDESIGN, Kangvape, Cali, and Breeze brands.
Recipients of warning letters have 15 working days to respond to the FDA, either outlining corrective measures taken or refuting the accusations made by the agency. Additional FDA sanctions may be imposed on those who fail to withdraw the items from the market or respond to the FDA.
In the past year, the FDA has sent hundreds of warning letters to vendors of disposable vape devices. Additionally, it has requested civil monetary penalties for certain repeat retail violators and directed FDA import inspectors to halt shipments of Elf Bar and Esco Bar goods.
The FDA declared last week that it would pursue civil monetary penalties against 25 physical and virtual businesses for repeatedly selling illegal vaporizers. The FDA is suing each store for up to $19,192 for a single violation.
Businesses accused of infractions that carry civil monetary penalties have four options: pay the full amount due right away, work out a settlement with the FDA, request a hearing, or request an extension to respond to the complaint. They must reply within 30 days or face an entire penalty imposed by default order.