By Timothy S. Donahue

Top Takeaways:

• Settlement reached: New Jersey secured a consent order against King Distribution and 17 affiliated smoke shops over alleged illegal sales of flavored vapes.
• Financial penalties: The companies agreed to pay a $100,000 civil penalty and to reimburse investigative costs.
• Enforcement expands: State officials say more inspections and enforcement actions are expected as New Jersey intensifies its crackdown on flavored vapes.

Attorney General Jennifer Davenport and the state’s Division of Consumer Affairs announced that King Distribution LLC and 17 affiliated smoke shops entered into a consent order to resolve allegations that the businesses illegally sold flavored vapor products in violation of New Jersey law.

The settlement imposes a $100,000 civil penalty and mandates changes to the companies’ business practices. “Flavored vape products are dangerous for kids and teens, and we are committed to keeping them out of our state,” Davenport said. “Today’s announcement demonstrates that New Jersey is not backing down from the fight to stop the spread of illegal flavored vape products.”

In January 2020, New Jersey became the first U.S. state to permanently prohibit the retail sale of flavored vape products, targeting flavors such as mint, fruit, candy, and chocolate that regulators say strongly appeal to youth consumers.

According to investigators, King Distribution allegedly supplied flavored vapor products to multiple retail smoke shops across Bergen, Essex, Hudson, and Passaic counties, where the products were sold to consumers.

Under the consent order, the retailer defendants are prohibited from selling flavored vapor products in New Jersey, and King Distribution is barred from distributing those products to New Jersey retailers. The agreement also prevents ownership groups associated with the businesses from operating future New Jersey entities engaged in flavored vape sales.

The companies also agreed to reimburse the Division $22,279 for investigative costs. Jeremy Hollander, acting director of the Division of Consumer Affairs, said the state plans to continue using consumer protection laws aggressively against nicotine retailers.

“As today’s action demonstrates, the Division will not hesitate to use this authority to protect our residents and preserve the integrity of New Jersey’s marketplace,” Hollander said.

The enforcement action comes as state attorneys general nationwide intensify pressure on flavored vapes and unauthorized nicotine devices. Earlier this week, Davenport joined a bipartisan coalition of 21 attorneys general urging the U.S. Food and Drug Administration to reject draft guidance that could ease approval of flavored e-cigarette products.

New Jersey officials say enforcement has intensified since the state’s flavor ban took effect. According to the Division, regulators inspected 28 flavored vape retailers last year, issued 16 notices of violation, and assessed $72,000 in penalties. The state also sent warning letters to nearly 11,000 licensed tobacco retailers as part of a coordinated multistate enforcement effort targeting flavored vapor products and accessories.

For the nicotine industry, the case highlights the increasingly aggressive state-level enforcement environment for flavored vapor products — particularly in states where regulators argue that illicit or noncompliant products continue to flow through independent distributors and smoke shop networks.