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.

From a 2017 Launch to 48% of South Korea’s Heated Tobacco Market, KT&G Looks Back on a Decade of lil
From a 2017 Launch to 48% of South Korea’s Heated Tobacco Market, KT&G Looks Back on a Decade of lil
KT&G announced on Aug. 13, 2026, that it has opened “lil Archive,” a brand exhibition space in Seoul showcasing the evolution, technology platforms and future direction of its heated tobacco brand lil since its launch in 2017. KT&G said lil now spans three major platforms — lil SOLID, lil HYBRID and lil AIBLE — with more than 30 dedicated consumables, and held a 48% share of South Korea's heated tobacco market in the second quarter of 2026. The opening comes as lil enters its 10th year, with KT&G continuing to position the brand for expansion beyond its domestic market.
Aug.14
Philippine Local Governments Urge Marcos to Prioritize Smoke- and Vape-Free Bill
Philippine Local Governments Urge Marcos to Prioritize Smoke- and Vape-Free Bill
The League of Municipalities of the Philippines (LMP) has urged President Ferdinand Marcos Jr. to prioritize the Smoke- and Vape-Free Bill, seeking a nationwide legal framework for tobacco and vape regulation. Local government leaders said national legislation would help standardize enforcement and strengthen public health measures. The proposal remains at the advocacy stage and has not yet become law.
Jul.29
Product | JT to Launch MEVIUS Tropical Option in Japan, Expanding Ploom Tobacco Stick Lineup to 32
Product | JT to Launch MEVIUS Tropical Option in Japan, Expanding Ploom Tobacco Stick Lineup to 32
Japan Tobacco (JT) will launch MEVIUS Tropical Option, a new tobacco stick for Ploom, nationwide in Japan from October 6, 2026. The capsule-format product combines mango-oriented sweetness with menthol cooling, adding a tropical flavor to the MEVIUS Ploom tobacco-stick lineup for the first time. Each pack contains 20 sticks and will launch at JPY 590. The product is compatible with all Ploom devices, and its addition will expand the Ploom tobacco-stick portfolio to 32 variants.
Sep.08
Earnings Analysis | CTIHK H1 2026 Revenue Falls 26.9% as Core Businesses Diverge and New Growth Drivers Remain to Be Proven
Earnings Analysis | CTIHK H1 2026 Revenue Falls 26.9% as Core Businesses Diverge and New Growth Drivers Remain to Be Proven
China Tobacco International (HK) reported a 26.9% revenue decline in H1 2026, while gross profit fell only 9.5%, revealing sharp divergence across its businesses. Tobacco leaf imports contracted, while leaf exports and Brazil operations expanded strongly. Cigarette exports faced China duty-free market transition, and new tobacco products remained small. Meanwhile, CTIHK continues to strengthen its role as an investment and financing platform, though major external deals have yet to emerge. 2Firsts examines what these shifts mean for its next growth drivers.
Capital Markets
Aug.24
Kaival Brands Explores Nicotine Pouches as Smaller Nicotine Companies Seek Smoke-Free Growth
Kaival Brands Explores Nicotine Pouches as Smaller Nicotine Companies Seek Smoke-Free Growth
U.S. nicotine company Kaival Brands Innovations Group is exploring opportunities in nicotine pouches and other modern nicotine products, reflecting a broader shift among smaller nicotine businesses beyond traditional vaping products.
Jul.17
Product | DOJO Launches BLAST10K Fresh in UK With 0+10ml E-Liquid Structure, Retaining 2+8ml Pod Compatibility
Product | DOJO Launches BLAST10K Fresh in UK With 0+10ml E-Liquid Structure, Retaining 2+8ml Pod Compatibility
DOJO launched the BLAST10K Fresh in the UK on September 4, 2026, introducing its INSTA-JUICED™ technology and a new 0+10ml structure that keeps e-liquid separated from the coil before activation. The device features a 1000mAh rechargeable battery, COREX BLAST dual-mesh technology and SSS leak-resistant technology, with a manufacturer-rated capacity of up to 10,000 puffs. It also retains compatibility with existing 2+8ml pods across the BLAST ecosystem. The launch introduces eight new flavors, including Matcha Strawberry, which DOJO describes as an industry first.
Market
Sep.04