August 08, 2016
- U.S. FDA ban on new products entering the market now active
- Vape stores no longer able to offer free e-liquid samples, with potentially devastating consequences
- Many commentators including the FDA itself foresee a dramatic consolidation of the market with all e-cig products to obtain authorization unless the grand-fathering date is changed by Congress
E-cig businesses can no longer bring new products onto the market until they have received regulatory approval from the U.S. Food and Drug Administration now that its regulations for e-cigarettes have come into force. Products currently on the market can continue to be sold for up to two years as a grace period before they too will be prohibited without authorization.
Vapor industry stakeholders argue that this brake on innovation in the market place will lead to serious consolidation in the industry – putting many firms out of business and leading to an overall detriment to public health as fewer smokers attempt to switch to e-cig products.
ECigIntelligence, the only market and regulatory analysis service dedicated solely to the vapour sector, believes that the future of many companies rests on regulatory efforts as well as a number of legal challenges to the FDA’s regulations that might modify or overturn them.
In particular congressional proposals to move forward the grandfathering date, the date from which products not on the market are subject to an onerous application process, may prove to be a salve for the industry if successful, ECigIntelligence legal analysts said.
ECigIntelligence offers a range of regulatory and market analysis tools to help businesses keep track of rapidly shifting developments in the e-cig market. This includes a full coverage of deeming regulations developments as well as a range of trackers fully covering e-cigarette regulatory developments at the state level.
Meanwhile vape store owners must cease offering customers free samples from today in order to comply with the FDA regulations.
This could lead to a serious fall in profits with fewer smokers shifting to vapor products, a number of industry organizations have said. However the FDA has said sampling is no longer allowed in order to deter young people from taking up vaping.
ECigIntelligence’s legal and market analysis teams have a full range of suggestions for vape store owners and other business operators to follow. To learn more get in touch with our subscriptions team.