Closing the Loophole

C-stores support legislation to curb access by minors to online e-cigarette sales.

Closing the Loophole

September 2019   minute read

By: Anna Ready Blom

The most common retail source of e-cigarettes to minors is the internet. However, this spring, the Food & Drug Administration (FDA) proposed addressing teen usage of flavored electronic cigarettes by effectively banning certain retailers such as convenience stores from selling the products, while still allowing them to be sold online.

A bipartisan group of lawmakers is trying to close the online loophole by passing the Preventing Online Sales of E-Cigarettes to Children Act, a bill that seeks to prevent internet sales of e-cigarettes to minors by applying the same measures already in place for cigarettes and smokeless tobacco products.

If you purchase an e-cigarette in a convenience store, your ID is checked in-person before you receive the product. However, if you purchase an e-cigarette online, under federal law, you are not required to show an ID to receive the package at delivery. Therein lies the rub and explains data from the American Journal of Health Promotion finding that 32.2% of minors who buy e-cigarettes in a retail sale acquire them from the internet.

In 2009, there was a similar problem of illicit sales of cigarettes and smokeless tobacco products to minors online. NACS, along with manufacturers and health groups, advocated for the passage of the Preventing All Cigarette Trafficking (PACT) Act. The PACT Act did two main things: It required online sellers of cigarettes to ensure that the delivery person check the ID of an adult upon delivery, and it required online sellers of cigarettes to collect and remit the appropriate taxes.

The legislation was so popular that it passed unanimously in both the Senate and the House of Representatives. And it proved successful. Following implementation, illicit sales of cigarettes online decreased dramatically. However, at the time of passage, e-cigarettes and vapor products were just emerging in the marketplace, and most people weren’t even aware the products existed, which is why they were not included in the original PACT Act.

There should be a level playing field among channels of trade selling e-cigarettes.

With the uptick in teens using e-cigarettes, NACS shared a list of policy proposals last fall with the FDA that would help curb youth access. One of those proposals fell under Congress’ purview—updating the original PACT Act to apply the measure to e-cigarettes. During NACS Day on the Hill, retailers and suppliers from across the country met with their congressional representatives and asked them to introduce legislation to close the online loophole.

Following the NACS fly-in, Senators Dianne Feinstein (D-CA), Chris Van Hollen (D-MD) and John Cornyn (R-TX) introduced S. 1253, the Preventing Online Sales of E-Cigarettes to Children Act, and Representatives Rosa DeLauro (D-CT) and Kelly Armstrong (R-ND) introduced the House version, H.R. 3942. The House bill was also co-sponsored by Representative Doug Collins (R-GA), who is the Ranking Member of the Judiciary Committee, where the bill is under consideration.

The legislation would require online sellers of e-cigarettes to:

  • Require verification that an adult with ID is present to take delivery of the product.
  • Label shipping packages to show they contain tobacco products.
  • Comply with all state and local tobacco tax requirements.

NACS strongly supports the Preventing Online Sales of E-Cigarettes to Children Act because we believe an in-person ID check should occur before an age-restricted product is given to customers in a store or at their doorstep. There should be a level playing field among channels of trade selling e-cigarettes. This legislation would help ensure adults are the only purchasers of e-cigarettes over the internet, just as the convenience store industry takes multiple steps to ensure adults are the only purchasers of e-cigarettes in its stores.

NACS needs your help in generating support for S. 1253 and H.R. 3942 in Congress. To help with our grassroots outreach, contact the NACS Government Relations Team.

Anna Ready Blom

Anna Ready Blom

Anna Ready Blom is NACS director of government relations. She can be reached at [email protected].

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