U.S. Vape Firms Urge Federal Court to Block North Carolina’s New Rules, Citing Unconstitutionality and Business Threats

Key points:

·The e-cigarette industry is urging the Fourth Circuit Court of Appeals to block a sales ban on e-cigarettes in North Carolina. 

·The ban was pushed by Reynolds American Inc. and aims to combat e-cigarette products that help people quit smoking. 

·The industry argues that the law infringes on federal power and violates the supremacy clause of the U.S. Constitution. 

·The court had previously denied the industry's request for an injunction, but the industry is now appealing.

【2Firsts News Flash】According to a report by Law360 on July 14, e-cigarette stakeholders in the United States are urging the Fourth Circuit Court of Appeals to temporarily block North Carolina officials from enforcing a law that could prevent the sale of multiple e-cigarette products in the state. They claim that the law, which they say is supported by tobacco giant Reynolds American Inc., targets products that help people quit smoking.

The American Vaping Association (VTA) and its co-plaintiffs argue that the law (Senate Bill 31 of 2024) gives state tax officials the authority to fine e-cigarette retailers, wholesalers, and manufacturers who do not have authorization from the US Food and Drug Administration (FDA). However, states cannot enforce FDA regulations because it infringes on federal power, violating the supremacy clause of the US Constitution, stakeholders in the e-cigarette industry claim in a filing submitted to the Fourth Circuit Court of Appeals.

The plaintiffs in the e-cigarette industry are asking the court to block the state law from taking effect so they can challenge it in federal court. They believe that their arguments may likely succeed on the merits and that their businesses will suffer if the law goes into effect, so they argue that an injunction is appropriate.

“The plaintiff sells mostly electronic nicotine delivery systems in their professional e-cigarette store that have not yet received FDA market authorization and therefore do not qualify for inclusion in the [North Carolina] directory. Without the sales revenue from these products, the appellant would face the risk of business closure, employee layoffs, and potential bankruptcy.”

Motion was made during the meeting.

The plaintiffs in the e-cigarette industry claim that this law gives the state tax department the power to fine retailers and manufacturers of e-cigarettes who sell products not authorized by the FDA. According to court records, retailers selling these unapproved products could face fines up to $5,000, as well as other penalties such as temporary suspension of their license, complete revocation of their license, and confiscation of products.