Small Business Accuses Altria of Misleading Support for Bill

Apr.09
Small Business Accuses Altria of Misleading Support for Bill
Small businesses accuse Altria of misleading support for proposed e-cigarette ban, facing potential loss of profits and market.

Key Highlights:

 

Small Retailers Allege Misleading Tactics
Several retailers claim they were misled by Altria into signing in support of a proposed bill (SB 1603) that would ban flavored e-cigarettes—despite not actually supporting the legislation.

 

Support List Suspected to Be Falsified
At least 40 stores were listed as supporters. However, several store owners said they never authorized their signatures, suspecting the signing process was manipulated or not clearly explained.

 

Bill Favors Big Tobacco
The bill only allows sales of 34 tobacco-flavored devices authorized by the FDA, primarily produced by Altria, RJ Reynolds, and Japan Tobacco International (JTI). This would ban many popular flavored brands like Geek Bar and Flum.

 

Devastating Blow to Small Retailers
Retailers say flavored e-cigarettes generate significant profit and make up a large portion of revenue. A ban could force many shops to shut down.

 

Legislative Process Stalled
The bill was initially denied a full Senate hearing and is now being advanced as an amendment to SB 1603. However, it has not yet received a hearing in the House Appropriations Committee, leaving its future uncertain.

 

Supporters Cite Public Health Concerns
Supporters emphasize protecting youth from vaping. Opponents argue that minors can still easily buy e-cigarettes from legal sources, pointing to existing regulatory loopholes.

 

Small Retailers Accuse Big Tobacco of Crushing Competition
Retailers believe big tobacco is using legislation to eliminate smaller competitors and regain lost market share in the vaping industry.


According to Azcentral on April 8, several e-cigarette retailers in Arizona claim they were listed as supporters of a bill to ban flavored nicotine vape devices without their knowledge or after being misled. These products represent a major source of income for many shops.

Casey Chanda, manager of Adobe Wine & Liquor, said that a representative from Altria visited his store and claimed he needed to sign a form in order to receive a list of flavored e-cigarettes that would be banned under the proposed legislation. The next day, Chanda discovered his store had been listed in the Arizona State Legislature’s "Request to Speak" system as a supporter of the bill.

 

The bill restricts sales to only 34 FDA-authorized vaping products, all produced by major tobacco companies such as Altria, RJ Reynolds, and JTI’s Logic Vapes. This would effectively ban hundreds of flavored products not authorized by the FDA, including brands like Geek Bar and Flum.

 

Chanda was shocked by this outcome: “Why are they asking me to stop selling these vapes? Do you know how much money I make from them?”

 

His store is one of nearly 40 listed as "supporting" SB 1603 in the legislative system. However, Azcentral contacted five of these stores, and four owners or managers said they had not knowingly signed in support of the bill. Altria has not responded to the allegations.

 

The bill was introduced by Republican Senator Kevin Payne and limits legal sales to products that were on the U.S. market before 2016 and submitted for FDA review by September 2020. Retailers who violate the law would face fines of $500 to $1,500 per product per day, and manufacturers could face civil penalties of $10,000 per product.

 

Currently, Arizona does not have a licensing system for vape product sales, and federal enforcement against unauthorized products has been weak—allowing widespread circulation of flavored vapes.

 

John-Paul Willett, owner of the Red Star Vapor chain, said he is closely following industry developments, especially a recent ruling from the U.S. Supreme Court on April 2 that backed FDA regulation of flavored e-cigarettes. The decision came just one day after FDA Center for Tobacco Products Director Brian King was dismissed as part of Donald Trump’s broader efforts to downsize federal agencies. During his tenure, King issued hundreds of warning letters and sought court injunctions to curb illegal vape sales. Trump has pledged during his campaign to "save" flavored vapes.

 

The bill has sparked strong opposition from the vaping industry, as it could force many small retailers reliant on flavored vape sales to close. Arizona Attorney General Kris Mayes said through a spokesperson that she will enforce existing laws but did not provide details on measures or timelines.

 

Originally introduced as SB 1272 and passed 5–2 in the Senate Public Safety Committee, the bill was shelved after Senate President Warren Petersen declined to bring it to a full vote. In response, proponent Senator Vince Leach repackaged the content as a "strike everything" amendment to another bill, SB 1603 (related to license plates), which passed the House Transportation and Infrastructure Committee 5–1 on March 26. However, it has since stalled in the House Appropriations Committee, where it has yet to be scheduled for a hearing.

 

Supporters of the bill argue that it aims to protect youth from the harms of vaping. During the March 26 hearing, Democratic Representative Myron Tsosie stated he had asked his sister to have her 13-year-old grandson try to buy a vape—and the child succeeded within 30 minutes.

 

Republican Representative Teresa Martinez showed several vape products designed to resemble children's toys—one shaped like a smoothie drink and another resembling a video game console. She noted that even adults could be attracted to these designs.

 

Opponents, like pharmacist and vape shop owner Alvin Mansar, argue that vaping is a safer alternative to smoking. He cited data showing that only 0.6% of nicotine vape users experience adverse reactions.

 

Multiple store owners said Altria representatives used misleading tactics to obtain their signatures. A store owner in Tempe became furious after learning his store was listed as a supporter, saying he had not authorized the listing and abruptly hung up the phone, declining to provide his name. Mike Takrouri, owner of Party Stop Market, said his sales rep told him the bill was about banning menthol cigarettes. He later realized it actually targeted vapes.

 

“I think they were dishonest from the beginning,” he said.

 

Takrouri has requested that his name be removed from the system, but as of April 7, it was still listed.

 

Phil Butler, manager at Chandler Oil One, also said he was registered as a supporter without fully understanding the bill’s content.

 

“I don’t support this bill. This is just big tobacco using the legal system to target the small guys who took their profits.”

 

Butler added that flavored vapes bring in very high margins—accounting for 50–60% of store profits and generating about $2,500 in monthly net income.

 

The fate of the bill remains uncertain, but Senator Vince Leach remains optimistic:

 

“The session is still ongoing—we still have a chance to push this forward.”


 

Main image source:Azcentral

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