US Supreme Court Overturns Precedent, Impacting E-Cigarette Industry and FDA

Regulations by 2FIRSTS.ai
Jul.03.2024
US Supreme Court Overturns Precedent, Impacting E-Cigarette Industry and FDA
US Supreme Court overturns decades-old precedent, potentially changing FDA's power in regulating e-cigarette industry.

According to VAPING360, the US Supreme Court has overturned a decades-old precedent that nearly gave federal agencies an insurmountable advantage in defending their regulations against legal challenges. The court's decision in Loper Bright Enterprises v. Raimondo (and a related case, Relentless v. Department of Commerce) could impact pending challenges in the e-cigarette industry against FDA regulations, potentially leading to changes in how the FDA regulates e-cigarette products.

 

The Supreme Court's decision overturned the Chevron doctrine based on the 1984 case of Chevron v. Natural Resources Defense Council. The Chevron doctrine held that as long as an agency's interpretation is reasonable, the court should defer to the "expertise" of federal agencies in interpreting ambiguous laws that the agency needs to implement.

 

This decision could potentially impact legal challenges to the FDA's interpretation of the 2009 Family Smoking Prevention and Tobacco Control Act (TCA), which grants the agency broad authority to regulate nicotine and tobacco products. The TCA does not specifically mention e-cigarette products, which were not on the market in the United States when the law was passed.

 

However, the FDA used a provision in the Tobacco Control Act to issue the 2016 "Deeming Rule," granting the agency regulatory authority over e-cigarettes, nicotine pouches, and other products not described in the 2009 legislation. The "Deeming Rule" establishes a system for manufacturers to submit market applications for e-cigarettes and other nicotine products.

 

When the FDA received a large number of pre-market tobacco applications (PMTAs) from small e-cigarette manufacturers and realized it was unable to individually consider them as required by the Tobacco Control Act (TCA), the agency created the so-called "deadly defects" system, allowing it to issue millions of marketing denial orders (MDOs) for flavored e-cigarette products without conducting actual scientific review.

 

In a friend-of-the-court brief submitted to the Supreme Court last year by a group of e-cigarette companies and trade organizations, industry lawyers explained how the FDA has used Chevron deference to create a maze of an elusive (essentially undefined) standard.

 

They wrote that the FDA "has taken a one-size-fits-all approach, which has dramatically tipped the scales in one direction, effectively banning all non-tobacco flavors (such as mint and fruit) of ENDS products, and in the process, focusing primarily on underage use, at the expense of adult smokers. The FDA implemented this de facto ban not by requiring Congress to amend the TCA or by establishing tobacco product standards through public notice and comment rulemaking procedures as required by the APA, but by issuing a regulation that is not based on the text, structure, and context of the TCA.

 

Due to the courts' tendency to view most challenges to federal agency power through the lens of Chevron deference, federal district and appellate courts have granted the FDA broad latitude to effectively ban all flavors of e-cigarettes, even when applications have been submitted, by improvising standards.

 

The decision of the Supreme Court in "Loper Bright" will impact how Congress writes laws, how federal agencies enforce laws, and how courts interpret laws. It could result in future court decisions partially limiting the FDA's Tobacco Products Center, forcing tobacco regulatory agencies to carefully consider the interests of adult consumers when reviewing market applications.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Special Report|AIR H1 Revenue Rises 3.7% as Shisha Volumes Fall 9%, Testing Its Shift Beyond Traditional Hookah
Special Report|AIR H1 Revenue Rises 3.7% as Shisha Volumes Fall 9%, Testing Its Shift Beyond Traditional Hookah
AIR’s first half-year results as a listed company offer a new test of how far a traditional hookah business can transform. H1 2026 revenue rose 3.7%, even as Flavored Shisha Molasses shipments fell 9%, with pricing and mix supporting growth. Traditional shisha still generates almost all revenue, while OOKA, Crown Switch, Greentank and U.S. regulatory spending point to accelerating diversification. The next test is whether those investments can become a second business of meaningful scale and profitability.
Capital Markets
Aug.21
Product | PMI Launches Airport-Exclusive IQOS Skylens Limited Edition, Expanding From Japan’s Narita to Travel Retail Markets in 13 Countries Summary
Product | PMI Launches Airport-Exclusive IQOS Skylens Limited Edition, Expanding From Japan’s Narita to Travel Retail Markets in 13 Countries Summary
Philip Morris International (PMI) has introduced the airport-exclusive limited-edition IQOS ILUMA i PRIME Skylens, the company’s first device created specifically for airport travel retail. Inspired by the world of flight and finished in metallic blue, Skylens debuted at Narita International Airport in Japan before expanding into selected airport duty-free and travel-retail channels across 13 countries in Europe, Asia, the Middle East and Africa. The product retains the existing IQOS ILUMA i PRIME platform, with differentiation centered on airport exclusivity, design and travel-retail execution rather than a new heating architecture.
PMI
Aug.19
South Korea Constitutional Court Upholds Volume-Based E-Liquid Tax, With Challenged Rates at KRW 370 and KRW 628 per Milliliter
South Korea Constitutional Court Upholds Volume-Based E-Liquid Tax, With Challenged Rates at KRW 370 and KRW 628 per Milliliter
South Korea's Constitutional Court has upheld fixed taxes on nicotine-containing e-cigarette liquids based on solution volume, ruling that challenged provisions imposing KRW 370 per milliliter in individual consumption tax and KRW 628 per milliliter in tobacco consumption tax do not violate the Constitution. The cases stemmed from historical disputes involving importers that reported nicotine as being extracted from tobacco stems rather than leaves. South Korea has since broadened its tobacco definition to include synthetic nicotine, while current tax laws provide reduced rates for certain products not derived from tobacco.
Sep.18
Australia Adds 6-Methylnicotine to Schedule 9 Prohibited Substances, Effective October 1
Australia Adds 6-Methylnicotine to Schedule 9 Prohibited Substances, Effective October 1
Australia's Therapeutic Goods Administration published a final decision on September 25 to classify 6-methylnicotine as a Schedule 9 prohibited substance under the Poisons Standard, effective October 1, 2026. TGA said the chemical has been reported in e-cigarette liquids sold in Australia and marketed as nicotine-free or nicotine alternatives, while evidence also indicates its use in preparations such as oral pouches. The government originally proposed a Schedule 7 classification but ultimately adopted the stricter Schedule 9 designation, citing acute toxicity, dependence risk, use in unapproved consumer products and misleading marketing.
News
Sep.29 by 2Firsts Perspectives
Product | BAT Expands VELO Peach Ice Medium to FamilyMart Stores Nationwide in Japan
Product | BAT Expands VELO Peach Ice Medium to FamilyMart Stores Nationwide in Japan
British American Tobacco Japan (BAT Japan) expanded VELO Peach Ice Medium to FamilyMart stores nationwide in Japan from September 7, 2026. The oral tobacco product first launched on July 6 and had previously been sold through VELO's official online store, glo Store Ginza and tobacco retailers. It combines peach flavor with menthol cooling at a Medium strength level and is priced at JPY 360. Japanese tobacco retailers list 15 pouches per pack. The move adds the new SKU to an existing nationwide FamilyMart distribution network for VELO rather than marking the brand's first entry into the convenience-store chain.
Sep.15
Ireland’s Vape Tax Raises €22 Million in Nine Months as Government Considers 2027 Budget Changes
Ireland’s Vape Tax Raises €22 Million in Nine Months as Government Considers 2027 Budget Changes
According to Irish media outlets Highland Radio and BreakingNews.ie, the Irish government is considering whether to adjust vape tax policy in the 2027 Budget. The tax has generated about €22 million ($24 million) in revenue during its first nine months. While no increase has been confirmed, the revenue performance could influence future fiscal discussions. Any tax rise could increase product costs and potentially affect retail prices.
Aug.12