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.

PML Expands Its UK Smoke-Free Portfolio With LEVIA
PML Expands Its UK Smoke-Free Portfolio With LEVIA
Philip Morris Limited has launched LEVIA, a new range of zero-tobacco flavored nicotine sticks created for the IQOS ILUMA range. The product expands the company’s smoke-free portfolio in the UK and will initially be available in four variants, including Deep Mint and three capsule-based flavors. LEVIA has a recommended retail price of £5, or about $6.73, based on the European Central Bank’s April 28.
Apr.29 by 2FIRSTS.ai
Canada’s Federal Vape Flavor Restrictions Remain Unclear Five Years After Announcement
Canada’s Federal Vape Flavor Restrictions Remain Unclear Five Years After Announcement
Five years after Canada’s federal government announced plans to restrict vaping flavors nationwide, Health Minister Marjorie Michel has not said when or whether the measure will still proceed. In 2021, Health Canada said it planned to limit vaping flavors nationwide to mint, menthol and tobacco, citing evidence that fruity and sweet flavors appeal to youth.
May.11 by 2FIRSTS.ai
RJR Vapor Loses Tax Refund Case as Texas High Court Finds VELO Pouches Taxable
RJR Vapor Loses Tax Refund Case as Texas High Court Finds VELO Pouches Taxable
The Texas Supreme Court issued a case summary on May 8, 2026, describing its decision in Hancock v. RJR Vapor Co. LLC. The dispute centered on whether RJR Vapor’s VELO oral nicotine pouches are taxable as “tobacco products” under the Texas Tax Code. Lower courts had held that the pouches were not taxable tobacco products, but the Texas Supreme Court reversed, concluding that VELO pouches are taxable because they are made of “a tobacco substitute.”
May.09 by 2FIRSTS.ai
Philippine Health Department Pushes Total Vape Ban, With Tobacco-Only Flavor Limit as Alternative
Philippine Health Department Pushes Total Vape Ban, With Tobacco-Only Flavor Limit as Alternative
The Philippine Department of Health said it is pushing for a total ban on vape products. If a full ban is not feasible, DOH officer-in-charge Director Dr. Dominic Maddumba said vape products should at least be limited to plain tobacco flavors to reduce their appeal to minors.
May.06 by 2FIRSTS.ai
FDA Adds 18 Tobacco Harmful Constituents and Seeks Comment on 3 More
FDA Adds 18 Tobacco Harmful Constituents and Seeks Comment on 3 More
U.S. Food and Drug Administration published a Federal Register notice finalizing the addition of 18 constituents to the established list of Harmful and Potentially Harmful Constituents in tobacco products. With the update, the list now contains 111 constituents. FDA also proposed adding three more constituents to the list and opened a public comment period ending at 11:59 p.m. ET on May 26, 2026.
Apr.24 by 2FIRSTS.ai
 Bangladesh Approves Amended Tobacco Control Law Expanding Ad Bans and Smoke-Free Areas
Bangladesh Approves Amended Tobacco Control Law Expanding Ad Bans and Smoke-Free Areas
Bangladesh’s new government has approved a broad tobacco control amendment that bans tobacco advertising, promotion and display across print, electronic, digital and social media, entertainment platforms and points of sale. The law does not cover newer products such as vapes, heated tobacco products, electronic nicotine delivery systems or nicotine pouches.
Apr.22 by 2FIRSTS.ai