FOR IMMEDIATE RELEASE
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BALTIMORE, MD – Attorney General Anthony G. Brown today joined a bipartisan coalition of 24 other attorneys general and the City of New York in urging major credit card companies and payment processors, including American Express, Capital One, Citi Group, Mastercard, Visa, PayPal, Stripe, Sezzle, and Block (operator of Square, Cash App, and Afterpay) to take stronger action to prevent their payment networks from being used to facilitate sales of unlawful vaping products. In letters sent to corporate leadership of each company, Attorney General Brown and the coalition called for immediate collaboration to block transactions that enable the widespread distribution of unlawful vaping products, particularly to young people.
Federal law requires that all e-cigarette products receive authorization from the U.S. Food and Drug Administration (FDA) before they can be legally marketed or sold in the United States. To date, the FDA has authorized only 41 e-cigarette products, none in flavors other than tobacco or menthol, meaning the vast majority of vapor products sold are unlawful. Products that have not received FDA authorization are considered “adulterated” under federal law and cannot legally be sold or shipped in interstate commerce.
In addition, the federal Prevent All Cigarette Trafficking (PACT) Act imposes strict requirements on online sellers, including age verification, registration, and compliance with all laws applicable to the sale of vaping products. Attorney General Brown and the coalition argue that many online retailers are failing to comply with these federal laws, as investigations show that most online sellers violate these basic safeguards meant to prevent youth access. Many of these sales are also unlawful under Maryland law. Despite these restrictions, unauthorized e-cigarettes continue to be sold in retailers, vape shops, or online and shipped directly to consumers, with transactions frequently processed through major payment networks.
States have taken enforcement actions against unlawful businesses, including litigation and referrals to federal authorities for placement on the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Noncompliant List. However, the coalition emphasizes that enforcement against vape sellers is not enough, and that payment processors play a critical role in stopping unlawful sales at their source.
Attorney General Brown and the coalition are calling on the credit card companies and payment processors to take meaningful steps to prevent their services from being used to process unlawful e-cigarette transactions. Specifically, they are requesting a meeting to discuss solutions, including prohibiting merchants and payment processors that violate federal, state, and local laws from using their networks. The coalition emphasizes that collaboration between government and the private sector has successfully reduced unlawful tobacco sales in the past and is essential to addressing the current surge in unlawful vaping product distribution.
Joining Attorney General Brown in sending the letters, which were led by the attorneys general of New York, Pennsylvania, California, and the City of New York, are the attorneys general of Arizona, Connecticut, Delaware, Hawaiʻi, Illinois, Indiana, Maine, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Tennessee, Vermont, Washington, Wisconsin, and Puerto Rico.
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