Back on May 9, we blogged about the FDA regulations on e-cigarettes and the affect they will have on e-cigarette merchants.
There are a host of changes the feds are imposing, such as:
- How merchants will need to apply to the FDA for licensing and permission to sell products.
- Merchants are prohibited from advertising their liquids as ‘light’ or ‘mild’ without FDA approval.
- Merchants are subject to inspections.
The FDA’s regulations go into effect Monday, Aug. 8, and e-cigarette merchants and advocates are not happy, for good reason.
3 Ways the FDA Regulations on E-Cigarettes are Unfair
The FDA regulations on e-cigarettes are going to be detrimental for small merchants – both e-commerce and brick-and-mortar. Here’s why:
1. Application Process: Merchants who started their businesses after Feb. 15, 2007 will have to register and apply for approval from the FDA. Additionally, a merchant who wants to roll out a new product (a flavor or device) must apply to the FDA for permission. According to a May 5, 2016 article in USA Today, the application processes could cost $1 million or higher – a figure that will eliminate the small e-cigarette merchant. Conversely, the big tobacco companies that have rolled out e-cigarette products to compensate for losses to the vaping industry could absorb such costs.
2. Grandfather Clause is Unreasonable: The Tobacco Control Act of 2009 reads that e-cigarette and tobacco merchants would have to have been established by Feb. 15, 2007 to be grandfathered into the FDAs regulations. There is already a movement within Washington to amend that date as the e-cigarette industry was barely existent in 2007.
3. FDA is Overlooking a Significant Point: The FDA’s claim that e-cigarettes are a gateway to traditional cigarettes for teenagers and young adults is understandable, hence its limits on age and requirement of photo ID. However, the feds are overlooking vaping as a quit-smoking aid: Millions of traditional smokers who have converted to e-cigarettes claim vaping is far greater health-wise.
The Best Payment Processing for E-Cigarettes
Back in March, Instabill was named among the best e-cigarette merchant account providers by CardPaymentOptions.com, a credit card processing review website, for its debit and credit card processing solutions, payment processing in more than 160 currencies and live customer support.
Need payment processing for your e-cigarette business? Speak directly with a merchant account expert at 1-800-318-2713 or by selecting the live chat option below.