• Complainant: R.J. Reynolds Tobacco Co. and subsidiaries
• Targets named: Heaven Gifts International (Elf Bar/Geek Bar) and subsidiaries, plus nine U.S. distributors
• Allegations: sales of flavored vapes where banned; state directory non-listing at time of sale; evasion of state/local excise taxes
• Legal framing: Section 337 unfair competition; alleged PACT Act noncompliance
• ITC status: acknowledged receipt of a 247-page complaint and opened a comment process
• Requested relief: general or limited exclusion order, cease-and-desist orders, and a bond during the 60-day review period
• FDA authorization claim: 39 total authorized e-cigarette products/devices; 16 for Reynolds; none for Heaven Gifts entities
2Firsts, January 16, 2026 – According to Law360, R.J. Reynolds Tobacco Co. is urging the U.S. International Trade Commission (ITC) to open an investigation into alleged efforts by China-based competitors to skirt vape restrictions in order to grow market share, which Reynolds says causes substantial harm to the domestic performance of its Vuse products.
Law360 reports that Reynolds and its subsidiaries filed a complaint naming Heaven Gifts International — the umbrella company behind Elf Bars and Geek Bars — along with its subsidiaries and nine U.S. distributors. The ITC acknowledged receipt of the 247-page complaint and opened the process for submission of comments on the issues raised.
Reynolds alleges the illegal activity includes selling flavored vapes in locations where they are banned, and violating state directory laws by selling products that were not listed in those registries at the time of sale. Reynolds also alleges the products are sold in ways that avoid state and local excise taxes, either by direct evasion or by selling to downstream customers who do not remit the taxes, allowing the respondents to undercut Reynolds’ prices.
Reynolds further alleges the violations coalesce as a failure to comply with the Prevent All Cigarette Trafficking Act and enable access to markets denied to lawful sellers, describing a “sprawling, multibillion-dollar” black-market network that has allowed the proposed respondents to capture the ENDS market at Reynolds’ expense.
To support its view that it would hold a larger share absent the allegedly illicit products, Reynolds cited that, as of this month, the U.S. Food and Drug Administration has authorized only 39 e-cigarette products and devices for marketing and sale in the U.S., including 16 belonging to Reynolds and none belonging to Heaven Gifts or its subsidiaries.
Reynolds is seeking a general exclusion order to block importation into the U.S. of all identified Heaven Gifts products, including Elf Bars and Geek Bars, citing concerns about circumvention and difficulties identifying sources, as well as an alleged widespread pattern of Section 337 violations. If a general exclusion order is not issued, Reynolds requested at least a limited exclusion order. It also seeks cease-and-desist orders against each named company and affiliates, and asked the ITC to impose a bond during the 60-day review period.
Law360 adds that Reynolds has another separate ITC complaint alleging infringement of an electric smoking patent, and that some proposed respondents have faced or continue to face U.S. court actions, including a New York City suit against two distributors over allegedly illegal flavored-vape sales and a California case that led Elf Bar to pull out of the state, according to Reynolds.
Image Source: Law360
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