Experts had anticipated this surge in black market activity, attributing it to the increasing restrictions placed on legal vaping products. And with more restrictions on the way, the situation was looking grim.
Each month, tens of thousands of illegal vapes are seized from black market sellers across the UK, and multiple reports have revealed that thousands of uncaught vendors have been selling illicit vapes. The 2024 Illegal Vaping Report found that in 2023, nearly 3,000 retailers of illicit vapes were identified nationwide, yet only 1 in 20 received fines. Naturally, the rapid expansion of the unregulated vape market raises serious concerns, as these products often evade essential safety checks, potentially posing significant health risks. Despite the alarming growth, experts had anticipated this surge in black market activity, attributing it to the increasing restrictions placed on legal vaping products. And with more restrictions on the way, the situation was looking grim.

To this effect, many local entities such as the UK Vaping Industry Association (UKVIA), had been urging the local government to introduce a licensing scheme for vape retailers. And finally, earlier this week on the 5th of November, the re-introduced Tobacco and Vapes proposed a new licensing system for retailers selling tobacco, vape, and nicotine products. The bill also includes immediate fines of £200 for retailers caught selling the products to underage individuals.

The licensing scheme will benefit all lawful stakeholders

These measures aim to support law-abiding businesses and address the surge in illicit and underage sales across the UK. Dan Marchant, CEO of Vape Club, who was among those who called for such a scheme, welcomed the measure. He emphasized that the move acknowledges the need for stricter regulation and echoes the industry’s concerns, particularly since Vape Club launched its own Retail and Distributor Framework earlier in the year. Marchant believes that a well-designed licensing system is essential to legitimize the vaping industry, build public trust, and eliminate rogue traders.

According to recent data obtained by Vape Club through a Freedom of Information request, enforcement of existing regulations has been weak. Out of 2,871 UK retailers caught selling illegal or underage vape products, only 139 were fined, with an average penalty of just £2,019. Marchant argues that such minimal penalties are insufficient and that meaningful action is needed. He stresses that the details of the licensing scheme are crucial.

Drawing parallels to the alcohol licensing model, Marchant noted that such a system alone might not address the key challenges facing the vape industry and public health. He calls for licensing funds to be dedicated to enforcement efforts, such as age verification and product inspections. He also advocates for a distribution license to support border control and trading standards, which would prevent illegal products from entering the country. Additionally, while on-the-spot £200 fines are useful, he insists that businesses should face substantial penalties for non-compliance.

Roles and responsibilities within the framework need clarification

With the impending ban on disposable vapes set for 2025, Marchant warns that without stringent enforcement, such bans could drive the black market. He urges the government to clarify roles and responsibilities within the licensing framework to ensure effective administration and enforcement.

Similarly, the UKVIA has praised the government’s inclusion of powers to implement a licensing scheme for vape retailers in the new Tobacco & Vapes Bill, describing it as a win for lawful businesses. This move addresses longstanding calls from the industry to curb rogue traders and illegal sales to minors, which have led to a growing black market. According to UKVIA, the proposed licensing scheme represents progress toward a safer, more regulated vaping market.

The importance of setting higher fines

UKVIA Director General John Dunne highlighted the association’s recommendations for a robust scheme, which includes high penalties—up to £10,000 for retailers and £100,000 for distributors violating laws on underage or illegal vape sales. UKVIA has advocated for a model that could generate over £50 million annually, which would fund an expansive Trading Standards enforcement program. Dunne emphasized that for the licensing system to be fully effective, it should include vape distributors and implement much higher fines than the proposed £200 to act as a strong deterrent against illegal activity.

He also noted that the focus should remain on supporting adult smokers looking to quit, and expressed a willingness to collaborate with the government to ensure the licensing framework is comprehensive and effective. The association believes that a successful framework will refocus the vaping industry on helping adult smokers transition from cigarettes.

The groups, alongside tobacco harm reduction experts, additionally call for balance regarding new government powers over vape flavours, packaging, and displays. Professionals in he field of smoking cessation emphasize that while it is crucial to tackle youth vaping and illicit products, adult smokers should still have access to the vaping options that best support cessation. Flavour restrictions should target inappropriate child-friendly flavour names and packaging, rather than the flavours themselves, given that studies have consistently found that flavoured vapes actually play an important role in harm reduction.

The UK’s Tragic State of THR Regress

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