By Timothy S. Donahue
TOP TAKEAWAYS:
- Bipartisan coalition claims Shopify is facilitating illegal online e-cigarette sales.
- AGs identify 29 illegal vape retailers currently selling on Shopify.
- Coalition aims to establish a formal partnership to halt unauthorized and flavored e-cigarettes.
A bipartisan group of 25 attorneys general, led by California Attorney General Rob Bonta and the City of New York, has urged Shopify Inc. to take much stronger action against merchants using its platform to sell illegal e-cigarettes, according to a letter sent this week.
“Right now, e-cigarettes are far too easy to purchase online,” Bonta said. “We have found that many sellers are able to offer illegal e-cigarettes for purchase by using Shopify’s services. It’s unacceptable, and we’re urging Shopify to help us better tackle this public health threat.” He said that stopping unlawful vape sales “at their point of origin” could accelerate enforcement efforts nationwide.
Shopify’s policies prohibit illegal activity, and the company has previously cooperated with Bonta’s office by shutting down certain e-cigarette merchants. However, the coalition said the problem has “continued at scale,” with dozens of illicit retailers still openly operating on the platform. The AGs requested a formal meeting with Shopify to develop a coordinated enforcement plan.
The attorneys general identified 29 illegal e-cigarette websites hosted on Shopify, all recently notified by California for violations of federal and state law. The letter also includes a separate exhibit listing more than 200 additional websites known to sell illegal tobacco products. Both lists are described as non-exhaustive. The coalition told Shopify it is willing to assist with further identification of violators through a formal cooperative agreement.
Under federal law, any new e-cigarette product must obtain marketing authorization from the U.S. Food and Drug Administration. To date, the FDA has approved only 39 e-cigarette products, all in tobacco or menthol flavors. Any vape product without FDA approval is considered “adulterated,” making its interstate sale or delivery illegal. The AGs say nearly all products sold by online retailers fall into this category.
States have implemented their own restrictions. California’s Senate Bill 793 bans flavored tobacco products, and Assembly Bill 3218 — effective January 1, 2025 — increases enforcement authority and mandates the creation of an Unflavored Tobacco List of legally permitted products in the state.
Bonta has also taken repeated enforcement actions, including lawsuits against Flumgio Technology Inc., Berkeley International Business Crew, and California-based e-cigarette retailers EJuiceSteals and E-Juice Vapor. He also helped secure a $462 million multistate settlement with Juul Labs, Inc.
The signatories of this week’s Shopify letter include AGs from Arizona, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Utah, Vermont, Washington, Wisconsin, and Puerto Rico.
“We hope Shopify continues to be a partner in our efforts to protect public health and enforce federal, state, and local laws,” Bonta said, noting that earlier cooperation from the company had been “positive and constructive.”
The coalition is now waiting for Shopify’s response and a possible meeting to discuss a platform-wide enforcement strategy against illegal vape sales.
