By Timothy S. Donahue

Top Takeaways:

• San Francisco’s City Attorney secured a $1M settlement that requires Lucy Goods to stop shipping flavored nicotine products into the city.
• The court order requires address-blocking, website notices, and payment of civil penalties and attorneys’ fees.
• The settlement brings the total penalties in the online flavored pouch case to nearly $4M, following earlier judgments against other retailers.

San Francisco has secured a $1 million settlement with online tobacco retailer Lucy Goods, Inc., requiring the company to stop shipping flavored nicotine products into the city, City Attorney David Chiu announced Jan. 8.

“The popularity of flavored nicotine pouches has skyrocketed, and we cannot risk hooking a new generation of young people on tobacco products,” Chiu said. “Online tobacco retailers are not above our laws and cannot ship banned products into our city.”

Under a stipulated judgment and injunction entered by the San Francisco Superior Court on Jan. 6, 2026, Lucy Goods must pay San Francisco $1 million in civil penalties and attorneys’ fees, block the use of San Francisco addresses in shipping and billing fields, and post clear website notices stating that flavored tobacco products cannot be sold in the city.

The settlement stems from a lawsuit filed in September 2024 by the City Attorney’s Office against Lucy Goods and other online retailers, alleging unlawful online sales of flavored nicotine pouches to San Francisco consumers in violation of the city’s flavored tobacco restrictions and the California Unfair Competition Law.

San Francisco officials described the enforcement action as part of broader efforts to curb youth access to flavored nicotine products. San Francisco Health Officer Dr. Susan Philip said, “Evidence shows flavored tobacco pouches pose a serious threat to public health, particularly among young people, as they can impact healthy development and lead to long-term health consequences.”

Supervisor Shamann Walton said the settlement “sends a clear message that San Francisco will enforce its flavored tobacco ban and hold corporations accountable when they try to undermine our public health laws.”

The Lucy Goods agreement follows earlier court judgments from October 2025 against the other defendants, bringing the case’s total penalties and fees to nearly $4 million, the City Attorney’s Office said.