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 Showcases Ploom, Marlboro Heated Tobacco Sticks and Non-Nicotine Energy Products at NACS Show 2026
Altria Showcases Ploom, Marlboro Heated Tobacco Sticks and Non-Nicotine Energy Products at NACS Show 2026
At the 2026 NACS Show, Altria displayed Ploom devices alongside imagery of Marlboro-branded heated tobacco sticks, while also featuring RIOT Energy and Proper Wild non-nicotine products. The booth showcased on! PLUS nicotine pouches, including 12 mg variants not listed among FDA-authorized products as of October 9, and NJOY e-cigarettes. Altria also presented convenience-store traffic figures highlighting its retail presence. 2Firsts examines the company's expanded product portfolio, non-nicotine business activities and the regulatory status of products displayed at the show.
EXPO
Oct.10
FDA Appoints Former Tobacco Enforcement Deputy Jessica Zeller as Director as Agency Weighs PMTA Framework Changes
FDA Appoints Former Tobacco Enforcement Deputy Jessica Zeller as Director as Agency Weighs PMTA Framework Changes
The U.S. Food and Drug Administration (FDA) has named Jessica Zeller director of the Center for Tobacco Products' (CTP) Office of Compliance and Enforcement (OCE), effective November 1, 2026. Zeller, the office's inaugural deputy director, returns from medical device manufacturer Edwards Lifesciences with more than 20 years of regulatory and legal experience. The appointment follows CTP leadership changes and adjustments to tobacco regulation. Bret Koplow became permanent CTP director in September; the FDA revised enforcement priorities for unauthorized e-cigarettes and nicotine pouches in May and announced faster PMTA review procedures. On September 28, the agency said it would evaluate changes to the existing PMTA regulatory framework, including potential rulemaking to replace it.
FDA
Oct.20 by 2Firsts Perspectives
UK Extends Age-18 Rules to Zero-Nicotine Vapes and Nicotine Pouches From Oct. 29, Bans Vending Machines and Promotional Giveaways
UK Extends Age-18 Rules to Zero-Nicotine Vapes and Nicotine Pouches From Oct. 29, Bans Vending Machines and Promotional Giveaways
Key provisions of the UK's Tobacco and Vapes Act 2026 will take effect on Oct. 29, extending an age-18 sales restriction to all vaping and non-medicinal nicotine products. In England, Wales and Northern Ireland, the change brings zero-nicotine vapes within statutory age-of-sale rules and also covers products including nicotine pouches, strips and pearls. The law will also prohibit proxy purchasing for under-18s, consumer-facing vending machines, promotional giveaways and substantial discounts intended to promote vaping and nicotine products.
Regulations
Oct.10
Imperial Brands Acquires Helwit Owner Yoik Group for SEK 515 Million, More Than Doubling Swedish Nicotine Pouch Share
Imperial Brands Acquires Helwit Owner Yoik Group for SEK 515 Million, More Than Doubling Swedish Nicotine Pouch Share
Imperial Brands has agreed to acquire 100% of Swedish modern oral nicotine company Yoik Group AB for an initial SEK515 million, equivalent to about US$53.9 million, plus a deferred payment linked to performance over the next two years. Yoik owns nicotine pouch brand Helwit, which held about 3.4% of Sweden’s modern oral nicotine market over the past 12 months. Imperial says the acquisition will more than double its existing share of the Swedish market. Helwit is also sold elsewhere in the Nordics, through European online channels and in selected UK retail outlets.
Sep.08
NAS 2026 | FDA CTP Director Says PMTA Pathway Is “Predicated on Tobacco Harm Reduction”
NAS 2026 | FDA CTP Director Says PMTA Pathway Is “Predicated on Tobacco Harm Reduction”
At the 2026 New Approaches Summit in New York, FDA Center for Tobacco Products Director Bret Koplow said the PMTA pathway is “predicated on tobacco harm reduction.” He outlined four CTP priorities: youth prevention, helping adults quit or switch to lower-risk products, improving relative-risk communication, and reducing unauthorized products. Koplow also addressed flavored e-cigarettes, public risk perceptions, industry credibility and efforts to make PMTA reviews more efficient and predictable.
Sep.26
Smoore Seeks to Toss CCELL Price-Fixing Claim as Court Weighs Vertical Distribution Versus Horizontal Conspiracy
Smoore Seeks to Toss CCELL Price-Fixing Claim as Court Weighs Vertical Distribution Versus Horizontal Conspiracy
Smoore and four authorized U.S. CCELL distributors are asking a California federal court to permanently dismiss a core antitrust claim brought by direct purchasers. Plaintiffs allege that Smoore coordinated minimum wholesale prices, customer allocation and limits on price competition among distributors, amounting to a per se unlawful horizontal conspiracy. The defendants say the alleged conduct reflects ordinary vertical relationships between a manufacturer and its distributors. The court previously dismissed a similar claim, and the latest dispute centers on whether the second amended complaint adds sufficient facts to establish a horizontal agreement.
Sep.14