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.

2Firsts On-Site | PMI Brings IQOS, ZYN, VEEV and Marlboro Together at Its “Boulevard” at InterTabac 2026
2Firsts On-Site | PMI Brings IQOS, ZYN, VEEV and Marlboro Together at Its “Boulevard” at InterTabac 2026
At InterTabac 2026 in Dortmund, PMI is presenting multiple brands and products along “The PMI Boulevard,” including IQOS, ZYN, VEEV and Marlboro. On-site images captured by 2Firsts show dedicated spaces including the IQOS Boutique, ZYN Café, PMI Gallery and Marlboro Office
Market
Sep.16 by 2Firsts Perspectives
Product | DOJO Launches 0+6ml BLAST7K Fresh in UK in September, Retaining 2+8ml Pod Compatibility Ahead of October Per-Milliliter Vaping Duty
Product | DOJO Launches 0+6ml BLAST7K Fresh in UK in September, Retaining 2+8ml Pod Compatibility Ahead of October Per-Milliliter Vaping Duty
DOJO officially launched the BLAST7K Fresh on September 17, 2026, introducing a UK-market prefilled pod product with 6ml of e-liquid and a manufacturer-rated capacity of up to 7,000 puffs. The device features a 1000mAh rechargeable battery, the INSTA-JUICED structure and COREX BLAST dual-mesh technology, while retaining compatibility with existing BLAST pods. The launch comes less than two weeks before the UK's Vaping Products Duty takes effect on October 1. At the new duty rate, 6ml of vaping liquid would correspond to £1.32 in VPD. DOJO has not stated that the product's 6ml format was designed in response to the new duty.
Sep.20
Florida Governor DeSantis Expands TANF Restrictions, Blocking Welfare Benefits From Buying Tobacco and Vapes
Florida Governor DeSantis Expands TANF Restrictions, Blocking Welfare Benefits From Buying Tobacco and Vapes
Florida Governor Ron DeSantis announced an expansion of Temporary Assistance for Needy Families (TANF) restrictions that would prohibit Electronic Benefit Transfer (EBT) funds from being used to purchase tobacco and vaping products. The state will amend its TANF State Plan and submit the changes for federal approval. Florida officials said the restrictions would not affect eligibility for temporary cash assistance or the amount of benefits received, but would change how funds can be spent.
Aug.25
U.S. Ninth Circuit Upholds FDA Denial of MH Global’s Flavored Vape PMTA Applications
U.S. Ninth Circuit Upholds FDA Denial of MH Global’s Flavored Vape PMTA Applications
The U.S. Court of Appeals for the Ninth Circuit upheld the FDA’s denial of MH Global LLC’s applications to market flavored electronic nicotine delivery systems (ENDS). The court ruled that FDA’s comparative-efficacy framework, which requires applicants to show that flavored products provide greater cessation or switching benefits than tobacco-flavored alternatives, is consistent with the Tobacco Control Act’s “appropriate for the protection of the public health” standard. The court also found that FDA was not required to establish the framework through notice-and-comment rulemaking.
Aug.26
Special Report | Altria Subsidiaries Sue FDA to Vacate 2021 PMTA Rule as Agency Moves to Speed Reviews
Special Report | Altria Subsidiaries Sue FDA to Vacate 2021 PMTA Rule as Agency Moves to Speed Reviews
2Firsts reviewed the original federal court complaint filed by Altria subsidiaries Helix Innovations and NJOY on Sept. 2 challenging FDA’s 2021 PMTA rule. The lawsuit questions whether FDA’s review process complies with the Tobacco Control Act’s 180-day timeline, even as the agency moves to accelerate PMTA reviews and issues more marketing orders. Drawing on the complaint, FDA records, government audits and recent court rulings, 2Firsts examines the legal arguments, supporting evidence and potential implications for the U.S. tobacco review system.
Regulations
Sep.03
UK Reform Party Proposes Cap of 1,000 Vape Shops Under Plan to Tighten Retail Controls
UK Reform Party Proposes Cap of 1,000 Vape Shops Under Plan to Tighten Retail Controls
The UK Reform Party has proposed limiting the number of dedicated vape shops in the country to around 1,000 as part of a plan to tighten oversight of vape retail channels. The proposal was put forward by Reform UK deputy leader and MP Lee Anderson. The plan remains a political proposal and has not become UK government policy, with no detailed legislation, implementation timeline or allocation rules announced.
Aug.10