Maryland Attorney General Joins National Coalition to Halt Illegal Vape Sales

Maryland Attorney General Anthony G. Brown is part of a broad, bipartisan effort involving 24 other state attorneys general and the City of New York, urging major credit card companies and payment processors to strengthen measures against the sale of illegal vaping products. The coalition has sent letters to prominent financial entities, including American Express, Capital One, Citi Group, Mastercard, Visa, PayPal, Stripe, Sezzle, and Block, which operates platforms like Square and Cash App. The primary objective of these communications is to implore these companies to collaborate in preventing their payment networks from being exploited to distribute unauthorized vaping products, a significant concern due to their prevalence and accessibility, particularly among young people.

Under federal law, all electronic cigarette products must obtain authorization from the U.S. Food and Drug Administration (FDA) before they can be legally marketed or sold within the United States. To date, the FDA has granted authorization to only a small number of e-cigarette products, and notably, none of these approved products are available in flavors other than tobacco or menthol. This means that the vast majority of vaping products currently on the market are not in compliance with federal regulations. Products lacking FDA authorization are classified as “adulterated” by federal law and, consequently, cannot be legally sold or shipped across state lines.

Furthermore, the federal Prevent All Cigarette Trafficking (PACT) Act establishes stringent requirements for online retailers, mandating measures such as age verification, registration, and adherence to all laws pertaining to the sale of vaping products. The coalition, including Attorney General Brown, contends that numerous online vendors are failing to meet these essential federal requirements. Investigations have revealed that a significant portion of online sellers disregard basic safeguards designed to prevent underage access to these products. Many of these sales also violate state laws, including those in Maryland. Despite these legal restrictions, unauthorized e-cigarettes continue to be readily available through various channels, including physical retailers, vape shops, and online platforms, with transactions frequently processed through major payment networks.

While state governments have initiated enforcement actions against businesses engaged in unlawful sales, including litigation and referrals to federal agencies for inclusion on lists of noncompliant entities, the coalition emphasizes that these measures alone are insufficient. They argue that payment processors hold a crucial position in effectively halting the flow of these illegal sales at their origin.

The group of attorneys general is seeking a collaborative approach with credit card companies and payment processors to implement meaningful steps that would prevent their services from being utilized for unlawful e-cigarette transactions. Their request includes scheduling a meeting to discuss potential solutions, such as barring merchants and payment processors that violate federal, state, and local laws from operating on their networks. The coalition highlights that past successes in curbing unlawful tobacco sales underscore the importance of private sector and government cooperation, a partnership they deem essential for addressing the current escalation in the distribution of unauthorized vaping products.

The letters were spearheaded by the attorneys general of New York, Pennsylvania, California, and the City of New York. In addition to Attorney General Brown of Maryland, the coalition comprises the attorneys general of Arizona, Connecticut, Delaware, Hawaiʻi, Illinois, Indiana, Maine, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Tennessee, Vermont, Washington, Wisconsin, and Puerto Rico.

Article by Mel Anara, based upon information from Maryland Attorney General

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