According to reports from Tobaccoreporter and other sources, Reynolds Tobacco, a subsidiary of British American Tobacco, along with R.J. Reynolds Vapor Company, has filed an investigation application with the U.S. International Trade Commission (ITC) under section 337 of the U.S. Tariff Act of 1930 (as amended). The investigation alleges unfair import practices by multiple manufacturers, distributors, and retailers of various popular disposable e-cigarette devices from both China and the United States.
This is one of the recent actions taken by Reynolds to remove the e-cigarette products of its competitors from store shelves. The case is titled "Certain Disposable Vaporizer Devices and Components and Packaging Thereof," with investigation prior to the case number 337-TA-3700.
Reynolds has requested the ITC to investigate and issue an injunction to prevent further imports of disposable e-cigarette products into the United States.
Reynolds hopes that the United States International Trade Commission will issue a permanent "cease and desist order" to prohibit the sale of illegal e-cigarette products by any company. Such a move would force almost the entire e-cigarette industry underground, with the exception of products owned by major tobacco companies like Reynolds, which have already received marketing orders from the U.S. Food and Drug Administration.
Reynolds's lawsuit specifically names several companies as "illegal disposable e-cigarette merchants," including Breeze, Elf Bar, Esco Bar, Hyde, Puff Bar, and the manufacturers, importers, distributors, and retailers of R&M disposable e-cigarettes.
Several well-known wholesale and retail companies in the United States, including Element Vape, Flawless Vape, Magellan Technology, Mi-One Brands, Price Point Distributors, and Vape Sourcing, have also been named simultaneously.
ITC has filed a lawsuit accusing the defendants of importing "illegal disposable e-cigarettes," in violation of the 1930 Tariff Act Section 337. Specifically, Reynolds claims that these companies either falsely advertised their products as being authorized for sale by the US government, or failed to comply with registration and reporting requirements, sales restrictions, or customs laws and regulations, as mandated by federal laws.
Last week, the FDA issued a Marketing Denial Order (MDO) for Vuse Alto, ordering the mint-flavored product to be removed from the market. However, the Alto device and tobacco-flavored pods are still under review by the agency. Currently, the FDA has authorized a total of 23 products, including two older models of Vuse e-cigarettes, namely Solo and Vibe, along with their tobacco-flavored cartridges.
Reynolds also stated that if illicit products are removed, they have the capability to fill any gaps in the market.
The complaint states, "If the accused products are excluded from importation, Reynolds is capable of meeting any increase in demand." "Reynolds is willing to fulfill any additional demand and can do so within a reasonable timeframe, as it has already supplied the industry with a significant amount of nicotine delivery devices and oral tobacco and nicotine products."
ITC has not yet made a decision on the appeal submitted on October 13th.
The plaintiff alleges that the illegal actions of both the Chinese and American defendants include:
- Violations of the Lanham Act pertaining to false and misleading advertising;
- Violations of federal laws regulating electronic nicotine delivery systems (ENDS) products;
- Violations of customs laws and regulations applicable to imported goods.
List of Accused Companies
China
1. Dongguan (Shenzhen) Shikai Technology Co., Ltd.
L5 Block A Shuangjinhui, Tongfuyu Fuyong
Baoan Shenzhen, Guangdong China 518101
2. Guangdong Qisitech Co., Ltd.
Fuxing Road, Changan Town, Room 201, Building 3, No. 36
Dongguan, Guangdong Province, CHINA 523000
3. Shenzhen Daosen Vaping Technology Co., Ltd.
#501, Building B1, Quanzhi Zhihui Park, Ligang S. Road.
Shajin Street, Bao’an Dist,, Shenzhen, China 518104
4. Shenzhen Fumot Technology Co., Ltd.
A2907, Building A Longguan Jiuzuan Business Center, Minzhi Longhua, Shenzhen, China 518000
5. Shenzhen Funyin Electronic Co., Ltd.
205 and 401, Building A3, Fuyan Ind. Zone Tangwei Community
Fuhai St., Bao’an Dist. Shenzhen
Guangdong, China 518000
6. Shenzhen Han Technology Co., Ltd.
Qianwan Hard Technology Park, Baoan District
Shenzhen, Guangdong,China 518126
7. Shenzhen Innokin Technology Co., Ltd.
Building 6, XinXinTian Industrial Park, Xinsha Road, Shajing
Baoan District, Shenzhen China 518104
8. Shenzhen IVPS Technology Co., Ltd.
101 Building B8, No. 2, Cengayo Industrial Area
Yuluv Community, Yutang Subdistrict
Guangming District, Shenzhen, Guangdong, China 518001
9. Shenzhen Noriyang Technology Co., Ltd.
Room 303, Building A, Zhonghengsheng High-Tech Park
Xinyu Road, Shajing Town, Baoan District
Shenzhen, Guangdong Province, China 518104
10. Shenzhen Pingray Technology
3rd Floor, No. 9 Building, HuaFeng International Made City
WanLe Rd., Shajing St., Bao’an District
Shenzhen, China 518000
11. Shenzhen Weiboli Technology Co. Ltd.
Room 312, Tianshuzuo, No. 6099 Bao’an Avenue
Bao’an District, Shenzhen, China 518000
12. iMiracle (Shenzhen) Technology Co. Ltd.
Room 1203, Block 1, Wanting Building, Xixiang Substrict
Bao’an District, Shenzhen China 518126
13. Vapeonly Technology Co. Ltd.
Room 306-311, Tianshu Building, No. 6099
Bao’an Avenue, Bao’an District, Shenzhen, China 518000
America
14. American Vape Company, LLC a/k/a American Vapor Company, LLC
13326 Immanuel RoadPflugerville, TX 78660-8006
15. Breeze Smoke, LLC
4654 Lilly CourtWest Bloomfield, MI 48323
16. EVO Brands, LLC
251 Little Falls Drive Wilmington, DE 19808
17. Flawless V ape Shop Inc.
1021 E. Orangethorpe Avenue Anaheim, CA 92801
18. Flawless V ape Wholesale & Distribution Inc.
1021 E. Orangethorpe AvenueAnaheim, CA 92801
19. Magellan Technology Inc.
2225 Kenmore Avenue Buffalo, NY 14207
20.Pastel Cartel, LLC
13326 Immanuel Road Pflugerville, TX 78660-8006
21. PVG2, LLC
251 Little Falls Drive Wilmington, DE 19808
22. SV3 LLC d/b/a Mi-One Brands
4908 E. McDowell Road Phoenix, AZ 85008
23. Thesy, LLC d/b/a Element Vape
10620 Hickson StreetEl Monte, CA 91731
24. Affiliated Imports, LLC
13326 Immanuel Road Pflugerville, TX 78660-8006
25. VICA Trading Inc. d/b/a Vapesourcing
3045 Edinger AvenueTustin, CA 92780
26. Price Point Distributors Inc. d/b/a Prince Point NY
500 Smith StreetFarmingdale, NY 11735
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