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New Jersey Issues Notice of Violations and Fines to Retailers Allegedly in Violation of the State’s Flavor Ban

By Chris Carlson, Michael Jordan, Agustin Rodriguez & Bryan Haynes on August 30, 2024
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On August 27, the New Jersey Attorney General (AG) and the Division of Consumer Affairs announced that the state had issued notices of violation and $4,500 civil penalty demands to 19 retailers across New Jersey for allegedly selling banned flavored vapor products. This is New Jersey’s first public enforcement of the state’s 2020 flavor ban, and New Jersey joins a number of other state AGs taking similar action across the U.S.

Background

In January 2020, New Jersey Governor Phil Murphy signed legislation that imposed a ban on e-cigarettes that have a “characterizing flavor,” which is broad enough to cover menthol. Retailers who violate this prohibition face escalating civil penalties of $250 for the first violation up to $1,000 for the third and each subsequent violation. They may also have their vapor business license suspended or revoked for repeated violations.

The legislature passed the bill following a recommendation from Governor Murphy’s Electronic Smoking Device Task Force, which was created by Executive Order No. 84 and directed to formulate a comprehensive strategy “to protect New Jerseyans and to educate the public, particularly youth, about the risks of electronic smoking devices.”

New Jersey’s Investigation

The division’s investigation was launched in June 2024 and involved undercover buys and in-store inspections. It targeted smoke shops, convenience stores, and gift and novelty retailers across five counties, many located near schools, parks, and shore town boardwalks.

Conducive of a Growing Trend

New Jersey’s actions are part of a broader trend to prohibit the sale of flavored tobacco and nicotine products. In addition to New Jersey, eight other states — California, Illinois, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Utah — as well as the District of Columbia have adopted some form of flavor ban, along with numerous localities. Indeed, San Francisco recently sued three California-based e-cigarette distributors, alleging violations of that city’s ban on flavored tobacco products and California law.

With this uptick in enforcement of flavor bans, it is important that businesses understand the contours of these restrictions. What products are covered? Which parts of the supply chain are potentially liable — manufacturers, distributors, retailers? If you have questions, do not hesitate to contact our team.

Photo of Chris Carlson Chris Carlson

Chris Carlson represents clients in regulatory, civil and criminal investigations and litigation. In his practice, Chris regularly employs his prior regulatory experience to benefit clients who are interacting with and being investigated by state attorneys general.

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Photo of Michael Jordan Michael Jordan

Michael Jordan is an associate in Troutman Pepper’s Richmond office. Michael draws on a diverse range of experiences in government and private practice to help clients navigate complex regulatory issues. He focuses primarily on heavily regulated industries, such as tobacco and cannabis.

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Photo of Agustin Rodriguez Agustin Rodriguez

Agustin is sought after by clients for his strategic counsel on their most challenging competitive and regulatory compliance issues, including tobacco Master Settlement Agreement issues, federal and state enforcement investigations, licensing and excise tax issues, developing compliance programs, and evaluating advertising and marketing…

Agustin is sought after by clients for his strategic counsel on their most challenging competitive and regulatory compliance issues, including tobacco Master Settlement Agreement issues, federal and state enforcement investigations, licensing and excise tax issues, developing compliance programs, and evaluating advertising and marketing practices. A partner in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group as well as its Tobacco and Cannabis law practices, he represents manufacturers, distributors, retailers, and suppliers in all aspects of their businesses, including regulatory compliance, FDA requirements, administrative disputes involving federal or state governmental entities, mergers and acquisitions, commercial agreements, and taxation matters.

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Photo of Bryan Haynes Bryan Haynes

Bryan Haynes serves clients by developing and implementing creative solutions for complex issues. Specializing in tobacco industry regulatory compliance and enforcement matters, Bryan efficiently assists clients in complying with regulatory obligations and managing risk, consistent with clients’ business objectives.

Read more about Bryan HaynesEmail
  • Posted in:
    Corporate & Commercial, Food, Drug & Agriculture
  • Blog:
    Tobacco Law Blog
  • Organization:
    Troutman Pepper Locke
  • Article: View Original Source

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