By Timothy S. Donahue
Top Takeaways:
- Capone Comparison: A state senator likened vape litigation to the prosecution of the notorious gangster.
- Legal Battle: Circle K, Alon and other defendants want a judge to dismiss the state’s lawsuit.
- New Restrictions: Lawmakers are considering higher penalties, flavor restrictions and expanded nicotine product taxes.
New Mexico is borrowing a page from the prosecutors who sent Al Capone to prison.
State Sen. Martin Hickey compared the state’s lawsuit against vape retailers and distributors to the prosecution of the notorious gangster, who was ultimately convicted of tax evasion rather than bootlegging. Speaking at an Oct. 13 legislative hearing, Hickey said the state’s consumer protection laws could similarly hold nicotine companies accountable.
In March, the New Mexico Department of Justice sued Circle K, Alon, and several other companies, alleging that they marketed flavored e-cigarettes to minors through colorful packaging and appealing flavors. The defendants have asked a judge to dismiss the case, and state attorneys are opposing the motion.
“In both that suit and in this one, these are selling products that are clearly hurtful to youth,” Hickey said, comparing the vape litigation to the state’s legal victories against Meta.
Lawmakers are also considering raising penalties under New Mexico’s Unfair Practices Act from $5,000 to $50,000 per violation. Other proposals include flavor restrictions, higher tobacco taxes, and expanded taxation of nicotine pouches.
Public health law consultant Megan Boelter told lawmakers that the state’s current 25% tax on nicotine pouches applies to tobacco-derived nicotine but not to synthetic nicotine.
The proposals may be considered during the 2027 legislative session.
