Most consumers of vape products such as CBD, THC and tobacco know that there are varying ways to get your vapes. Conveniently consumers have been able to buy batteries, cartridges and other vape products online, of course with the exception of Delta 9 THC vape cartridges. But sadly that convenience is coming to an end. The PACT [Prevent All Cigarette Trafficking] Act has been recently amended by Congress to now include e-cigarettes and all vape products.
What is the PACT Act?
The PACT Act went into effect back in 2010 and banned tobacco products such as cigarettes, roll-your-own products and smokeless products from being sold and shipped via U.S. postal services. Companies, retailers, shipment workers and delivery services must also register to sell these products under this act.
The PACT Act Now Includes Vape Products
Until February 2021, the PACT Act did not apply to vape products as they were a smaller and relatively unknown category at the time of the act’s initial passage. Now they are among the most rapidly-growing categories, with Euromonitor reporting an estimated 55 million people worldwide will be using vapes regularly in 2021. The industry’s growth, which reached $15.7 billion in 2018 and could grow to as much as $40 billion by 2023, caused the government to pay more attention to vaping products. Recent concerns over the products’ possible contributions to teenager and young adult deaths also spurred Congress to expand PACT to cover vapes, including e-cigarettes, batteries, cartridges whether they are full or empty and other products that are used for vaping are prohibited from being sold and shipped through the U.S. The main concern with vaping products was with e-cigarettes because of the fentanyl scandal. Sadly this scandal has unfairly tainted the reputation with CBD and THC vape products which has brought on harsher regulations making it even harder for manufacturers and cannabis companies to produce their products and do business.
How Does This Affect Me As A Consumer?
If you are a consumer of vape products, you will no longer have the convenience of purchasing your favorite products online and getting them shipped right to your door. Consumers will now have to go to registered retailers to buy any vape products, including CBD vapes, THC vapes and tobacco vapes. Even if you are not consuming a tobacco-based product, one must go through the same process to make a purchase. Vapes are also being taxed like all other tobacco products, meaning your favorite products will now increase in price.
Consumers are outraged by this ban. Most consumers are annoyed by the issue that a decent amount of vape sales has nothing to do with the consumption of tobacco, such as CBD vapes, herbal vapes or even Delta-8 THC vapes. Consumers are also irate that they cannot purchase batteries online, decorative batteries for vape being a popular product.
How Does This Affect Me As A Business?
Businesses are really going to be hit hard with this ban, especially small businesses. Online retailers made a large amount of profit from digital sales of vape products. According to the CDC’s study, approximately half of all e-cigarette sales in the US in 2019 were made online, and RTI’s research showed that vape products from CBD companies surveyed, such as CBDfx, increased online sales by 235 percent between 2018 and 2020. The CBD and cannabis industry is going to suffer greatly from this new addition to the PACT Act.
As a business, one must fill out the proper paperwork in order to register themselves and be allowed to produce and sell vape products. The form to register with the U.S Department of Justice can be found here. Once approved by the Attorney General, the company or business can continue to manufacture their products, but they cannot be shipped by U.S mail and the raw materials cannot be purchased and shipped via mail. Companies will now have to purchase large quantities of their raw materials and have them sent via boat in order to make their products.
In addition to the non-mailing and registration, businesses and companies must file a monthly report with the state to show who is receiving, delivering and how much of the product is being sent. The ban was set for USPS, but as of March 1, 2021, major shipping companies like UPS and Fedex have also announced bans on shipping vape products, making it even harder for companies to distribute their inventory.
For more information on how to register your business and make sure your business is complying with the laws click here.
Although it is disheartening that this ban is affecting wonderful and beneficial CBD and THC products you can still purchase them at local shops. The best way to navigate vape products is to do your research prior to purchasing, making sure the product you love is filled with clean and safe ingredients.
If you have more questions about the PACT Act and how your business can continue to sell contact the ATF:
Bureau of Alcohol, Tobacco, Firearms and Explosives Alcohol and Tobacco Enforcement Branch
99 New York Avenue, N.E.
Washington, DC 20226
Telephone: (202) 648-7130
Fax: (202) 648-9725