Illegal Operation of Electronic Pods: A Warning for Consumers

Aug.10.2023
Illegal Operation of Electronic Pods: A Warning for Consumers
Illegal trade of electronic pods, a type of tobacco product, has been exposed in Nantong, Jiangsu province.

Heating non-burning cigarettes, commonly known as e-pods, are tobacco products. Some illegal individuals have started engaging in the "business" of purchasing and reselling heating non-burning cigarettes (commonly known as e-pods) without a tobacco retail license. On August 4th, the defendant Ma was prosecuted by the Tongzhou District Procuratorate in Nantong City, Jiangsu Province. The court sentenced Ma to two years and six months of imprisonment for illegal business operations, with a three-year probation period, and imposed a fine of 20,000 yuan.

 

Original flavor, mint flavor, amber flavor, orange flavor, lemon flavor, tropical fruit flavor..." With so many flavors, you might think they are candies or drinks. In fact, these are all flavors of electronic pods. In April 2020, a resident named Xiao Wu from Liyang was curious and searched on online trading platforms, eventually successfully purchasing overseas electronic pods through a person named Zhu. However, after receiving the goods, Xiao Wu felt that the taste of the pods was different from the ones they had tried before, making it seem like they were fake. As a result, Xiao Wu reported the matter to the Liyang Tobacco Monopoly Bureau.

 

In December 2021, the Liyang Tobacco Monopoly Bureau referred a case to the public security authorities for criminal investigation due to potential involvement in criminal activities. Subsequently, the Liyang Public Security Bureau cracked down on illegal business operations conducted by a suspect named Zhu. Following the trail, they apprehended Zhu's supplier, a person named Ma, regarding illegal business operations as well. The case was then transferred to the Tongzhou District public security authorities for further processing. Investigation revealed that Ma had engaged in purchasing services, taking advantage of her frequent trips abroad, to buy electronic pods for her family and friends. "As I began to be approached by more and more people for assistance in purchasing electronic pods, I gradually realized the hidden business opportunities and started my own purchasing business," Ma confessed. Once her purchasing business took off, she was able to establish connections with individuals who could supply her with electronic pods.

 

Under the allure of money, Ms. Ma naively believed she could get away with selling electronic pods in China without the required tobacco retail license. Despite lacking the necessary permit, she continued to engage in this business. She advertised the sale of electronic pods on various online platforms such as WeChat and Xianyu, using specific icons instead of the term "pod" to avoid platform scrutiny. After negotiating prices with customers, Ms. Ma would forward the delivery address and payment to a purchasing agent who had a source for the products. The agent would then directly ship the items to the customers, while Ms. Ma profited from the price difference.

 

On June 2, 2023, the case was transferred to the Tongzhou District Procuratorate for review and prosecution. According to the prosecuting officer Qiu Hua, between August 2021 and July 2022, Ma illegally sold "Marlboro," "Heets," and other brands of IQOS heat-not-burn cigarettes without the necessary licenses from the tobacco regulatory authority. The total amount of illegal operation was over 200,000 yuan, with illegal gains totaling 20,000 yuan.

 

Prosecutors remind that China implements a monopoly licensing system for tobacco, and operating electronic pods without a license may potentially constitute the crime of illegal business operation, especially in severe cases. The country maintains strict regulation on imported e-cigarettes, and the quality and safety of e-cigarettes purchased through overseas sourcing cannot be guaranteed. Moreover, the abundance of flavors in the market may overwhelm consumers, but it is important to note that flavored e-cigarettes are explicitly prohibited from being sold. Therefore, consumers are advised to exercise caution when making purchases.

 


Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Altria’s USSTC Starts $250 Million Kentucky Expansion, Adding More Than 200 Jobs
Altria’s USSTC Starts $250 Million Kentucky Expansion, Adding More Than 200 Jobs
U.S. Smokeless Tobacco Company, an Altria Group company, has broken ground on an approximately $250 million manufacturing expansion in Hopkinsville, Kentucky. The roughly 270,000-square-foot facility is expected to create more than 200 jobs and absorb processing, manufacturing and packaging operations currently split between Hopkinsville and Nashville, Tennessee. USSTC previously said production at its Nashville facility is expected to wind down by early 2028. The project forms part of Altria’s broader effort to modernize and consolidate its U.S. smokeless tobacco manufacturing network.
Sep.10
Malaysia Police Seize RM12.7 Million in Illegal Vapes and Cigarettes as Probe Points to Sea Shipments From China
Malaysia Police Seize RM12.7 Million in Illegal Vapes and Cigarettes as Probe Points to Sea Shipments From China
Police in Malaysia’s Selangor state seized illegal vape products and contraband cigarettes worth about RM12.7 million (approximately $3 million) in two enforcement operations. According to New Straits Times and The Star, the vape-related operation uncovered 131,036 boxes of vape products, 4,900 bottles of e-liquid and 25,510 vape devices, valued at about RM9.4 million. Police said preliminary investigations indicated that some illegal vape products entered Malaysia through sea shipments from China before moving through storage and distribution networks.
Aug.10
IQOS Global Flagship Space to Open in Tokyo Ginza as PMI Expands Consumer Experience Strategy
IQOS Global Flagship Space to Open in Tokyo Ginza as PMI Expands Consumer Experience Strategy
Philip Morris Japan (PMJ) announced that it will open “IQOS Flagship Ginza” in Tokyo on September 4, 2026. The location will become the first global flagship space for PMI’s IQOS brand. PMJ said the venue will target adult smokers aged 20 and above and combine product experiences, community engagement and local cultural elements. The design will incorporate Japanese natural aesthetics and traditional craftsmanship. The launch reflects PMI’s broader strategy of strengthening consumer engagement through experiential retail and brand spaces. The existing IQOS Store Ginza is scheduled to close on August 30, 2026.
Jul.21
2Firsts Exclusive Analysis | RLX Q2 Revenue Rises 14.8%, Company Takes Control of Western European Distributor and Expands Multi-Category Strategy
2Firsts Exclusive Analysis | RLX Q2 Revenue Rises 14.8%, Company Takes Control of Western European Distributor and Expands Multi-Category Strategy
business accounting for 68.5% of sales. A new controlling investment in a Western European distributor and plans to scale modern oral nicotine pouches point to a broader international strategy spanning channels and multiple product categories.
Special Report
Aug.14
Altria Smokeable Profit Rises 2.4% as Marlboro Share Falls and U.S. Discounts Gain
Altria Smokeable Profit Rises 2.4% as Marlboro Share Falls and U.S. Discounts Gain
Altria’s second-quarter results show a U.S. nicotine market splitting across price, product and regulation. Smokeable profit rose 2.4% as Marlboro pricing offset lower volumes, while discount brand Basic gained share among value-conscious smokers. In oral nicotine, on! PLUS expanded distribution but faced intensifying competition from ZYN and Velo. NJOY remained off the market as patent and regulatory hurdles delayed its return. The broader lesson: U.S. growth increasingly depends on price-tier strategy, retail execution, authorisation and enforcement readiness across the industry.
Special Report
Jul.31
Product | KT&G to Launch lil Tonino Lamborghini in South Korea, Bringing 3-Second Heat-Up to New HTP Platform
Product | KT&G to Launch lil Tonino Lamborghini in South Korea, Bringing 3-Second Heat-Up to New HTP Platform
KT&G will launch the lil Tonino Lamborghini heated tobacco device in Seoul on September 15, 2026. The product introduces a new heating technology called Flashwave Heating, which uses microwaves to heat tobacco sticks internally and delivers a manufacturer-rated heat-up time of about three seconds. The device features an all-metal aluminum body, a color display and a dedicated GUI, and launches alongside a new line of NAU tobacco sticks that are incompatible with existing lil consumables. Korean media describe the product as KT&G's first new heated tobacco platform since lil AIBLE was introduced in 2022.
Aug.31