By Timothy S. Donahue
Top Takeaways:
- Retail Shutdown: Volcano eCigs will close all 13 Hawaii locations December 31, ending operations that began in 2009.
- Jobs Lost: Approximately 56 employees face permanent layoffs as the company exits the retail market.
- New Restrictions: Hawaii will soon limit sales to FDA-authorized products listed in a state directory and prohibit certain disposable vapes.
Hawaii’s new vape laws are about to extinguish one of its oldest retailers.
Volcano eCigs, which has operated in the state since 2009, announced it will permanently close all 13 stores across three islands on December 31, one day before sweeping new restrictions on electronic smoking products take effect.
The shutdown will eliminate approximately 56 jobs, according to a Worker Adjustment and Retraining Notification (WARN) filed on November 4 with the Hawaii Department of Labor and Industrial Relations.
The company, operated by Jocor Enterprises LLC, cited changes to Hawaii’s regulatory environment as the reason for its closure. Most employees will leave on December 31, though a limited number may remain through January 15, 2027, to complete administrative work.
“We’ve given adult smokers an opportunity to adopt different technologies and move away from combustible tobacco,” Volcano Chief Operating Officer Scott Rasak told media.
Two laws Gov. Josh Green signed in July will substantially restrict the state’s vaping market starting January 1.
Act 190 establishes the Hawaii Electronic Smoking Device and E-Liquid Directory, allowing only products with U.S. Food and Drug Administration marketing authorization and meeting state certification requirements to be sold. Manufacturers were required to submit certifications by October 1.
The Hawaii Attorney General’s Office said the FDA had authorized only 48 e-cigarette products as of August 28, a fraction of the thousands of products available nationwide.
Act 189 separately prohibits the sale of certain disposable electronic smoking devices. The law defines those products as nonrefillable devices with non-rechargeable batteries intended for disposal after use. FDA-authorized devices are exempt from that prohibition.
Retailers selling products not listed in the state directory face fines starting at $500 per product for a first violation, increasing to as much as $2,000 for subsequent violations. Products may also be seized and destroyed.
Violations of the disposable-device restrictions incur additional fines of up to $100 per day. Rasak warned that the restrictions could leave remaining vape retailers with little merchandise they can legally sell.
“What you’ll expect to see when you go in these shops is empty shelves—if they’re still open. Or they’re going to be operating completely illegally,” he said.
He also questioned whether restricting legal retailers would reduce demand for vapes. “It’s just going to be a lot of peer-to-peer, a lot of black market selling, cash-only stuff,” Rasak said. “And of course that removes the legal pathway for age-gated businesses to sell the products that we currently have today.”
Supporters of the legislation argue that restricting the market to FDA-authorized products will reduce youth access to flavored e-cigarettes and strengthen consumer protections.
“We succeeded in passing these two bills to really narrow the market and the availability of e-cigarettes in the State of Hawaii from 7,000 down to about 48,” said Kevin Ramirez, program manager for the Coalition for a Tobacco-Free Hawaii.
State Rep. Scot Matayoshi, chairman of the House Consumer Protection and Commerce Committee, said Volcano’s closure illustrates how heavily vape retailers rely on products not authorized by the FDA.
“The fact that vape shops are going out of business shows us how many non-FDA authorized products were on the shelves,” Matayoshi told media. “And those non-FDA authorized products, honestly, are a little dangerous for consumers.”
Gov. Green said the legislation also addresses environmental concerns related to disposable vaping products, including lithium batteries, plastic waste, and pollution.
“It is more important than ever to preserve the health of our environment and ensure the health of our keiki,” Green said when signing the measures in July. “We have seen the effects and now we are taking action.”
The Attorney General’s Office will oversee the new product directory and, alongside other state agencies, enforce the restrictions.
For Volcano, the regulatory changes leave little room to continue operating its existing business. The company’s closure eliminates a retail chain that has served Hawaii’s vaping market for 17 years, and the broader impact on the state’s remaining vape shops will become clearer when the restrictions take effect on January 1.
