Australia's New Vaping Law Leads to the Collapse of the Legal Market and a Surge in Black - market Transactions

Jun.23
Australia's New Vaping Law Leads to the Collapse of the Legal Market and a Surge in Black - market Transactions
Australia’s new vaping law has led to the collapse of the legal market and a surge in black - market transactions. The new regulations, which limit sales to pharmacies, have seen low participation and transaction volumes in the legal market, while black - market dealings have soared. Critics say the policy has fueled organized crime, and experts are calling for legalization and regulation to address the crisis.

Key Points:

 

·Legal market shrinking: After the implementation of the new law, monthly sales of legal e-cigarettes are less than 6,000, while black market transactions exceed 10 million, mainly dominated by disposable e-cigarettes from China. 

 

·Policy flaws: Regulations restrict flavors, packaging, and sales channels, and failed to consult with pharmacies in advance, leading to the reluctance of most pharmacies (only 700) to participate. 

 

·Black market expansion: The Minister of Health claims that legislation will "eliminate the black market," but the actual effect is the opposite, fueling organized crime and reducing tax revenue. 

 

·Calls for reform: Experts criticize the current policies as failing and suggest comprehensive legalization and consumer-oriented regulation to replace the black market and reduce public health risks.

 


According to a report by The Telegraph, Australia's strict pharmacy-only e-cigarette laws have caused the legal e-cigarette market to collapse, giving organized crime power. Government data shows that out of 1700 e-cigarette transactions, only 1 was legal.

 

According to documents obtained by the newspaper, pharmacists report legal sales of e-cigarettes to be fewer than 6,000 per month, while over 10 million e-cigarettes flow into the black market every month - mostly Chinese disposable e-cigarettes sold in convenience stores and tobacco shops.

 

In 2024, the law allows nicotine e-cigarettes to be sold only in pharmacies without a prescription, but under strict restrictions: limited flavors, simple packaging, and no consumer-friendly branding. However, prior to the law being passed, pharmacies were not consulted so out of 5900 pharmacies, less than 700 have stocked the products.

 

Minister of Health Mark Butler claims that the legislation will "eliminate the black market," however, Jim McDonald writes:

 

“Butler's "world-leading" e-cigarette restrictions, combined with Australia's astonishingly high tobacco taxes, have decimated the legal e-cigarette industry, fueled the already massive black market, resulted in a decline in tobacco tax revenues, and encouraged organized crime to become involved in the e-cigarette market.”

 

Experts and critics are calling for comprehensive legalization and consumer market regulation to replace the black market and reduce harm.

 

Welcome to submit articles, contact for interviews, or submit comments to 2Firsts. Please contact: info@2firsts.com or connect with 2Firsts CEO Alan Zhao on LinkedIn.

 

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

The Consumers Association of Penang of Malaysia: Should Follow Singapore's Lead in Treating E-Cigarettes as Drugs for Comprehensive Regulation
The Consumers Association of Penang of Malaysia: Should Follow Singapore's Lead in Treating E-Cigarettes as Drugs for Comprehensive Regulation
Consumer Association of Penang (CAP) urges Malaysian government to follow Singapore in treating e-cigarettes as a drug threat.
Aug.25 by 2FIRSTS.ai
British American Tobacco is launching a promotion in South Korea, with the first-time purchase price of glo Hyper Pro being approximately US$20
British American Tobacco is launching a promotion in South Korea, with the first-time purchase price of glo Hyper Pro being approximately US$20
British American Tobacco Korea (BAT Rothmans) recently launched a trial marketing campaign to lower the barrier to first-time buyers and expand consumer reach for its glo Hyper series of heated tobacco devices. During the campaign, first-time buyers can purchase a glo Hyper pro for just 29,000 won (approximately US$20) online and offline, while the glo Hyper is available offline for 20,000 won (approximately US$14).
Sep.23 by 2FIRSTS.ai
Philippines Customs Seizes $140,000 Worth of Black Ultra Vape Cartridges; Recipient Arrested
Philippines Customs Seizes $140,000 Worth of Black Ultra Vape Cartridges; Recipient Arrested
The Philippine Bureau of Customs at the Port of Clark seized a shipment falsely declared as shoes and clothing, which actually contained 20,610 Black Ultra vape cartridges valued at about USD 140,000. The shipment was found in violation of provisions of the Customs Modernization and Tariff Act, and Philippine police have arrested the recipient involved.
Aug.18 by 2FIRSTS.ai
Singapore's Crackdown on E-cigarettes May Benefit, Batam Island: Local Tourism Board Says It Could Become an Alternative Destination for Singaporeans
Singapore's Crackdown on E-cigarettes May Benefit, Batam Island: Local Tourism Board Says It Could Become an Alternative Destination for Singaporeans
The head of the tourism bureau of Indonesia's Batam Island said that Singapore's decision to crack down on e-cigarettes and treat them as a "drug issue" might boost cross-border travel, as Singaporeans may head to Batam, just an hour's ferry ride away. Batam Island has already benefited from Singapore's previous strict regulations.
Aug.29 by 2FIRSTS.ai
Study Reveals Vuse’s Social Media Marketing: Using F1 and Influencers to Circumvent Advertising Bans through Entertainment Marketing
Study Reveals Vuse’s Social Media Marketing: Using F1 and Influencers to Circumvent Advertising Bans through Entertainment Marketing
A new study reveals that BAT-owned Vuse leverages global social media accounts for marketing, expanding its influence through F1 partnerships and influencer-driven entertainment placements to circumvent advertising bans. The study highlights insufficient compliance transparency and calls for strengthened unified global regulation.
Aug.19 by 2FIRSTS.ai
Three Refuse Truck Fires in Two Weeks in Glasgow; GMB Calls for Stronger E-Cigarette Battery Recycling and Public Awareness
Three Refuse Truck Fires in Two Weeks in Glasgow; GMB Calls for Stronger E-Cigarette Battery Recycling and Public Awareness
The GMB union says three compartment fires occurred in Glasgow’s newly deployed refuse trucks over the past two weeks, with initial checks pointing to lithium-ion batteries from e-cigarettes being crushed and igniting during compaction.
Sep.23 by 2FIRSTS.ai