Top Takeaways:

• USPS Blocks Demand Vape Over Unregulated Shipments: The U.S. Postal Service has revoked the mailing privileges of Demand Vape, a major New York-based distributor, after receiving evidence from New York City’s Law Department that the company shipped electronic nicotine delivery systems lacking FDA authorization and violating local flavor bans.
• Industry Pushback and Regulatory Challenges: Demand Vape disputes the USPS decision, stating it operates in a “regulatory grey zone” with only a small number of FDA-authorized products that do not meet consumer demand.
• Impact on the Illicit Vape Market: The crackdown is expected to benefit major tobacco firms like Altria and British American Tobacco, which have long battled against unregulated vapes. The illicit vape market is estimated to be worth around $8.05 billion, but is increasingly under pressure due to import tariffs, seizures at ports, and FDA enforcement efforts.

The U.S. Postal Service (USPS) has revoked the mailing privileges of Demand Vape, a prominent New York-based distributor. The action, detailed in a letter dated July 15, 2025, follows evidence provided by New York City’s Law Department that the company shipped electronic nicotine delivery systems (ENDS) lacking U.S. Food and Drug Administration authorization and violating local flavor bans.

The USPS used the PACT Act to justify the denial. The Prevent All Cigarette Trafficking (PACT) Act prohibits the USPS from shipping ENDS, such as vapes and e-cigarettes, to consumers. The restriction applies to most domestic shipments and all international shipments.

The USPS letter, addressed to Demand Vape, states: “Your local Buffalo BME Office will not accept any packages from… Demand Vape that contain ENDS products.” This decision underscores the federal government’s increasing scrutiny of the vaping industry, particularly concerning products that do not comply with FDA regulations.

Demand Vape has expressed its intention to contest the revocation, emphasizing that the vaping industry operates in a “regulatory grey zone.” The company argues that the limited number of FDA-authorized products does not meet the diverse preferences of adult consumers seeking alternatives to traditional tobacco products.

The FDA has authorized only 39 e-cigarette products to be legally marketed and sold in the United States, all of which are tobacco- or menthol-flavored. The stringent approval process has led to a proliferation of unregulated products in the market, many of which are imported and lack proper authorization. The USPS’s action against Demand Vape is part of a broader effort to curb the distribution of unauthorized products.

The crackdown is expected to benefit major tobacco companies, including Altria and British American Tobacco, which have long contended with the rise of unregulated vapes. The companies argue that unauthorized products undermine their sales and pose health risks to consumers. T

he illicit vape market is estimated to be worth approximately $8.05 billion, but is facing increasing challenges due to import tariffs, seizures at ports, and FDA enforcement actions.

Tony Abboud, executive director of the Vapor Technology Association, has criticized the regulatory environment, stating that the current system creates significant barriers for small businesses and limits access to products that could aid in smoking cessation.

Abboud advocates for clearer and more consistent regulations that balance public health concerns with the needs of adult smokers.