Smoore's Subsidiary CCELL Faces Antitrust Lawsuit in the U.S., Accused of Price Manipulation and Market Monopoly

Jul.03.2025
Smoore's Subsidiary CCELL Faces Antitrust Lawsuit in the U.S., Accused of Price Manipulation and Market Monopoly
A U.S. federal court in Arizona has recently accepted a class-action lawsuit against Chinese e-cigarette manufacturer Smoore and its U.S. distributor. The suit accuses them of monopolizing the U.S. cannabis vape market through price manipulation and market division, resulting in higher costs for consumers. This marks the second such case filed this year.

Key Points:

 

·Monopoly Accusation: Smoore is accused of manufacturing 80% of the closed-system marijuana oil e-cigarette devices in the United States and forcing distributors to adhere to minimum pricing and prohibiting the sale of competing products. 

 

·Anticompetitive Behavior: The lawsuit alleges that Smoore conspired with distributors for ten years, sharing pricing data, dividing the market, and collecting $500,000 in security deposits to prevent violations. 

 

·Legal Basis: The plaintiffs are seeking compensation under the Sherman Antitrust Act, the Clayton Antitrust Act, and laws of 31 states for the high prices consumers have faced due to monopolistic practices. 

 

·Case Status: Smoore has not yet responded, and the case is filed under docket number 2:25-cv-02259 in the Federal Court of Arizona. 

 


【2Firsts news flash】According to a report by Law 360 on July 2nd, the Chinese marijuana e-cigarette brand CCELL and its several American distributors are accused of engaging in anticompetitive price manipulation to gain market dominance. This class-action lawsuit is the second this year to make similar allegations.

 

According to a lawsuit filed on June 28 in a federal court in Arizona, Shenzhen Smoore Technology Co. Ltd. and Smoore International Holdings Ltd. devised a plan to allocate market dominance by requiring distributors to agree to minimum prices and prohibiting them from selling competing products.

 

The complaint alleges that "Smoore is the monopolist in the American market for the production of closed-loop cannabis oil e-cigarette devices, manufacturing up to 80% of the products in the United States and selling them directly to cannabis producers and wholesale distributors, including the defendant distributor.

 

According to the lawsuit, Smoore is both a supplier to the distributor defendants mentioned in the lawsuit, as well as a competitor, including the largest CCELL product distributor in the United States, Jupiter Research LLC. Despite these distributors helping Smoore establish a monopoly, the lawsuit indicates that they were forced to do so in order to continue accessing these popular products.

 

"Smoore's dominant market share has put distributors accused in a position where they must choose between either participating in Smoore's anti-competitive plan or facing the consequences of being unable to do business with Smoore. This would entail the risk of losing a crucial supply source, which holds as much as 80% of the market share in the closed-loop cannabis oil vaporization system market in the United States."

 

This class action lawsuit seeks damages under the Sherman Antitrust Act and the Clayton Antitrust Act, as well as under the antitrust laws and consumer protection laws of 31 states and regions in the United States.

 

The claims in this lawsuit are similar to a lawsuit filed in a federal court in California, but the earlier lawsuit was filed by a marijuana retailer based in Arizona, which sought compensation as a business harmed by monopolistic practices. The current lawsuit is partly based on the theory that consumers who had to pay higher prices due to these monopolistic practices are seeking compensation.

 

The complaint states that this pattern of horizontal price fixing, market division, and exclusive dealing began nearly a decade ago.

 

According to the complaint, the retailers allege that Smoore and its distributors conspired not to compete for each other's customers, as well as not to charge customers fees lower than the agreed upon price for CCELL products. The accused distributors include Jupiter, CB Solutions LLC (better known as Canna Brand Solutions), and Greenlane Holdings Inc., all of which are named defendants in the California lawsuit.

 

The lawsuit alleges that Smoore demanded distributors to share confidential pricing data and customer information with each other on a monthly basis. All distributors were required to avoid competing with each other. Each distributor was also required to pay a $500,000 deposit. If Smoore found that someone violated the terms of the illegal agreement, they would deduct funds from the violator's deposit.

 

On June 25th, representatives of the company in question did not immediately respond to requests for comment. The lawyer information for the company in question has not yet been disclosed.

 

This class action lawsuit is being represented by Cristina Perez Hesano of Perez Law Group PLLC.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Reynolds Puts Nearly 183,000 U.S. Contracted Outlets Under Age-Verification Rules, Covering 94% of Volume — Can It Shift an Unauthorized Vape Market?
Reynolds Puts Nearly 183,000 U.S. Contracted Outlets Under Age-Verification Rules, Covering 94% of Volume — Can It Shift an Unauthorized Vape Market?
Reynolds American says nearly 183,000 U.S. retail outlets are under contract, with its Retail Marketing Plan Contract covering about 94% of company volume and requiring point-of-sale age verification. The company combines those contracts with We Card, TruAge, NACS-linked infrastructure and POS integration, while enhanced Vuse Pro retail rules add ID scanning, purchase limits and stronger underage-sales accountability. The initial Vuse Pro rollout targets about 50,000 stores. The system is taking shape as unauthorized vapor products remain dominant in parts of the U.S. market: a 2026 study estimated they accounted for 69.4% of tracked brick-and-mortar e-cigarette dollar sales in December 2025.
Special Report
Oct.15
Product | Philip Morris Launches TEREA Bold Red and Bold Black in Germany With Level-10 Tobacco Intensity at €8 per Pack
Product | Philip Morris Launches TEREA Bold Red and Bold Black in Germany With Level-10 Tobacco Intensity at €8 per Pack
Philip Morris International (PMI) introduced TEREA Bold Red and Bold Black heated tobacco sticks in Germany in October 2026, both carrying a brand-rated tobacco-flavor intensity of 10, the highest level in the country's TEREA portfolio. Bold Red features leather and warm woody notes, while Bold Black combines woody and subtle floral notes. Both are sold in 20-stick packs at €8, approximately 2.6% above standard TEREA products. Germany's TEREA range now includes 11 flavor variants, alongside a separate 26-stick XL format priced at €10. IQOS Germany announced the new products on October 12, followed by a phased retail rollout from late October and an IQOS Club campaign running through December.
product
Nov.02
Pennsylvania Lists 163 Vape Products Eligible for Sale, Including Vuse and JUUL; Previously Pending Chinese Brands Such as OXBAR Remain Absent, While Unlisted Products Including Geek Bar Face Enforcement From October 19
Pennsylvania Lists 163 Vape Products Eligible for Sale, Including Vuse and JUUL; Previously Pending Chinese Brands Such as OXBAR Remain Absent, While Unlisted Products Including Geek Bar Face Enforcement From October 19
Pennsylvania begins enforcing its electronic nicotine delivery system (ENDS) directory restrictions on October 19, 2026. The October 18 directory contained 163 product records from seven manufacturers, including Vuse, JUUL, NJOY, Logic and Naked 100. Geek Bar, RAZ and Lost Mary were absent. BAT, Altria, Japan Tobacco and JUUL collectively accounted for 112 records, or 68.7%, while Imperial Brands' blu had no listings. The directory included 15 disposable vape records, 40 bottled e-liquids and 10 products labeled 0mg, but no open-system refillable devices. Twenty-two manufacturer certifications remained under review. Four Logic models corresponding to Smoore's pending records were listed under the brand owner, while LYCO, OXBAR and Boulder/Rock had no approved directory entries.
Regulations
Oct.19
Russia’s Vape Device Labeling Regime Enters Force: Registration Starts in September, Mandatory Coding in December
Russia’s Vape Device Labeling Regime Enters Force: Registration Starts in September, Mandatory Coding in December
Russia's digital labeling regime for reusable e-cigarettes and similar personal vaping devices entered its first mandatory phase in September 2026. From September 1, manufacturers, importers and other market participants must register with the national Chestny ZNAK tracking system. From December 1, newly manufactured and imported covered devices will be required to carry digital identification codes and be reported as entering circulation. Russia has also issued new operational guidance for imports, marking the transition from a voluntary pilot to phased mandatory implementation.
Sep.15
NAS 2026 | FDA CTP Director Says PMTA Pathway Is “Predicated on Tobacco Harm Reduction”
NAS 2026 | FDA CTP Director Says PMTA Pathway Is “Predicated on Tobacco Harm Reduction”
At the 2026 New Approaches Summit in New York, FDA Center for Tobacco Products Director Bret Koplow said the PMTA pathway is “predicated on tobacco harm reduction.” He outlined four CTP priorities: youth prevention, helping adults quit or switch to lower-risk products, improving relative-risk communication, and reducing unauthorized products. Koplow also addressed flavored e-cigarettes, public risk perceptions, industry credibility and efforts to make PMTA reviews more efficient and predictable.
Sep.26
South Korea Fully Reviews Nicotine-Analog and Nicotine-Free Vape Liquid Imports, With Over 99% From China and Chinese Supply-Chain Documents Under Scrutiny
South Korea Fully Reviews Nicotine-Analog and Nicotine-Free Vape Liquid Imports, With Over 99% From China and Chinese Supply-Chain Documents Under Scrutiny
Korea Customs Service has tightened import controls on nicotine-analog and nicotine-free e-cigarette liquids, placing the products under 100% document review and subjecting all e-cigarette liquid import declarations to pre-clearance ingredient analysis. As of September 20, 2026, South Korea had imported about 15 metric tons of nicotine-analog liquids, 99.99% from China, and about 316 metric tons of nicotine-free liquids, including roughly 315 metric tons, or 99.7%, from China. The measures follow South Korea's April expansion of its tobacco definition to include synthetic nicotine products and include new checks on Chinese manufacturing, transaction and export documentation.
Sep.24