E-Cigarette Companies Shift Operations Offshore to Bypass FDA Regulations, Including Lost Mary and Elfbar Brands

Feb.25.2025
E-Cigarette Companies Shift Operations Offshore to Bypass FDA Regulations, Including Lost Mary and Elfbar Brands
Reuters reports that some e-cigarette companies have shifted operations offshore to bypass U.S. regulations. Heaven Gifts moved its Lost Mary brand to a British Virgin Islands firm after the FDA banned Elfbar in 2023, while Ludicrous Distro began distributing unauthorized third-party products. The FDA has denied millions of licenses for new nicotine devices, particularly flavored vapes that appeal to teenagers. Despite bans, brands like Elfbar continue to be popular among youth vapers in the U.S

According to Reuters, several e-cigarette companies targeted by U.S. authorities have adapted their business strategies to bypass regulations, including shifting operations to offshore firms. This move has made it more difficult for the U.S. Food and Drug Administration (FDA) to prevent the importation of unauthorized vapes into the country. The FDA has been closely monitoring these changes, which include companies altering product labels or restructuring their businesses to avoid detection. However, the FDA did not specify which brands or companies were involved.

 

One notable example is the Chinese vape giant Heaven Gifts, which transferred its U.S. operations for its Lost Mary brand to a British Virgin Islands (BVI) company, Wonder Ladies Limited. This shift occurred after the FDA banned several companies, including those based in China, the U.S., and South Korea, from importing its flagship Elfbar brand in 2023. Despite the ban on Elfbar, Lost Mary remains available for sale in the U.S., signaling that the product is still being distributed despite not having FDA authorization.

 

Similarly, Ludicrous Distro, a Texas-based e-cigarette firm operating under the name American Vape Company, stopped selling its own unlicensed Esco Bars brand. Instead, the company began distributing a wider range of unauthorized vaping devices from third-party manufacturers. The company’s website reflects this change in focus.

 

Heaven Gifts’ spokesperson, Jacques Li, stated that the company had exited the U.S. market for its Lost Mary brand by transferring operations to Wonder Ladies, following the FDA’s ban on Elfbar. Li emphasized that the company was not attempting to circumvent FDA regulations, despite the move.

 

Ludicrous Distro, when asked about its decision to sell unauthorized products, did not provide a clear explanation. However, the company explained that it has always aimed to comply with the FDA’s evolving policies, which have created confusion in the industry.

 

The FDA has denied licenses for approximately 26 million new nicotine devices since October 2020, particularly targeting fruit and candy-flavored vapes, which the agency claims appeal to teenagers. The growing popularity of unauthorized products, such as Elfbar, has led to increasing concerns about youth vaping, with Elfbar becoming one of the most widely used brands among young vapers in the U.S. in 2024.

CCPIT Says Trade Friction Index for China-Related Electronics Sector Remains High, With Vape Products Among Areas of Focus
CCPIT Says Trade Friction Index for China-Related Electronics Sector Remains High, With Vape Products Among Areas of Focus
China Council for the Promotion of International Trade (CCPIT) held its July regular press conference on July 31, 2026, releasing the May 2026 Global Economic and Trade Friction Index. CCPIT spokesperson Yang Fan said the global trade friction index stood at 95 in May, remaining at a medium-to-high level. By industry, the electronics sector recorded the highest trade friction index among 13 monitored industries. In China-related trade frictions, the index stood at 93, with electronics products including drones, chips and vape products among areas where friction remained elevated.
Aug.03
Minnesota Sues Loon as State Enforcement Targets U.S. Vape Brand Operators
Minnesota Sues Loon as State Enforcement Targets U.S. Vape Brand Operators
Minnesota Attorney General Keith Ellison sued Maduro Distributors, Inc., doing business as Loon, on July 15, 2026, alleging that the company illegally manufactured, distributed and sold flavored vapes that appeal to minors.
Jul.16
Pennsylvania Updates ENDS Certification List as Chinese-Linked Manufacturers Enter State Review
Pennsylvania Updates ENDS Certification List as Chinese-Linked Manufacturers Enter State Review
Pennsylvania’s June 26 Pending ENDS Certifications list includes 23 manufacturers under review, including Shenzhen Smoore, Shenzhen IVPS, YME Technology and China-linked Boulder International. The list shows state-level vape regulation moving beyond retail brands toward manufacturer-based market access alongside FDA oversight.
Regulations
Jul.06 by 2Firsts Perspectives
BAT Calls for Retailer Input in Future Nicotine Regulations
BAT Calls for Retailer Input in Future Nicotine Regulations
British American Tobacco (BAT) has called for stronger retailer involvement in shaping future nicotine product regulations in the UK, arguing that frontline market feedback should be considered during policy development. BAT said retailers provide direct insight into consumer behavior, market changes and regulatory implementation challenges. The comments come as the UK nicotine market undergoes regulatory changes, including the disposable vape ban, Vaping Products Duty and efforts to address illicit vape sales.
Jul.29
2Firsts Interview | InterTabac 2026 Adapts to a More Complex Tobacco and Nicotine Market
2Firsts Interview | InterTabac 2026 Adapts to a More Complex Tobacco and Nicotine Market
As InterTabac 2026 approaches, Sabine Loos, Managing Director of Westfalenhallen Unternehmensgruppe, tells 2Firsts that global tobacco trade fairs are evolving beyond product display. With new nicotine categories, shifting regulation and more complex supply chains reshaping the industry, InterTabac is positioning itself as a platform for market insight, regulatory discussion and global business connection.
Special Report
Jul.02
UK Local Council Proposes £5 Refundable Deposit on Vape Devices
UK Local Council Proposes £5 Refundable Deposit on Vape Devices
Norwich City Council is set to debate a proposed vape deposit scheme that would require consumers to pay an extra refundable £5 per device at purchase, with the money returned when the device is handed back, as recent recycling-facility fires, including a major Widnes blaze reportedly very likely caused by a vape, draw greater attention to the risks of improperly discarded lithium-battery devices.
Jul.01