The e-cigarette category is exploding within the convenience industry, and retailers see it as a great sales opportunity. However, this growing category is under threat from underage sales and illegal products that could undermine retailers and consumers.
John Dunne, director general of the UK Vaping Industry Association (UKVIA), spoke to ConvenienceStore.co.uk about the issue of illegal vaping and how it has the potential to disrupt a lucrative category for retailers.
"The problem with illegal vaping is very serious at the moment. I've been using trade standards to raid and we've taken out 4,500 illegal devices from one store in Oxford Street alone. That's the equivalent of buying almost £100,000 worth of product from one store. ”
“The two areas we’re most concerned about right now are underage sales. Retailers are the last point of contact for that. So, it really comes down to they don’t sell to young people. This applies to brick-and-mortar stores and online stores.”
Online sales are a big concern for Dunn — he called on social media platforms to do their part to reduce the number of vaping products being promoted, as he believes that is part of the reason why underage sales are so high.
“Platforms like TikTok and Instagram — they have the ability to limit age and use their surveillance systems to weed out posts that show vaping. But the problem is they have no interest in doing that.”
“We have to have discussions within members and believe members shouldn’t be on these platforms to try and set an example. But that’s a big risk for companies because it could put them at a competitive disadvantage. In my It appears that I see no reason why age-restricted products should be discussed on a platform where the majority of the population is teens.”
Dunn said UKVIA, the UK vaping association, wanted tougher fines for underage sales to deter anyone from being tempted.
"We want to increase the fine for arrests for selling vaping products to people under 18 to £10,000 per case. We also want shops to be licensed."
He explained why the licensing scheme would root out anyone who sells illegal products or shouldn't buy them.
“The licensing scheme will help with trade standards, so they will be able to quickly identify who these illegal dealers are because they don’t have a license. We would like to see this as a national scheme where stores are authorised to do it once or twice a year test to make sure they follow the rules."
"The second issue has to do with the illegal products themselves," Dunn said. "Some are actually counterfeit or counterfeit products, which are sometimes difficult to spot. But the easiest ones to spot are those that are either too large for the UK market or have a nicotine concentration above the maximum 2ml."
Dunn understands why customers would be inclined to buy illegal products, especially if they are cheaper than legal ones, but said the issue is leveling the playing field for retailers who are safe and abiding by the rules.
"If you have a retailer that's selling 600 legit devices for £5, and another retailer is sending twice that size for £2. You can see why consumers are drawn to it."
"Our concern is that the devices are not tested. They are not registered with MHRA and we don't 100% know what's in there. It's also leveling the playing field for retailers, because you don't want to stop retailers or retailers that are doing the right thing. Let them be tempted to engage in illegal activities because nothing is done. It will only end in a downward spiral that no one wants.”
His advice to retailers, who are confused about what they can and cannot do, is simple. "If it's more than 600-800, don't sell it."
Dunn said 40 to 60 percent of single-use e-cigarettes currently sold in the country do not comply with domestic laws or are counterfeit.
"Based on the amount of illegal products I've seen on the market, the amount of illegal sales being reported, and what's being reported against trade standards, I believe this is a big problem and a huge concern," he said. "I get maybe 200 to 400 reports a month about illegal sellers in the UK. All of them are sent to MHRA and Trading Standards for enforcement."
He warned that if the current trend of illegal and underage e-cigarette sales continues, the category could be hit by legislation.
“This is a market with huge growth potential for retailers and if it is allowed to grow responsibly, shortsightedness and ignoring compliance will have a detrimental effect. And could lead to the category being banned, or a ban Flavor or plain packaging.”
"I would ask retailers to think about what they are doing. Do you want your children to have access to these products? If the answer is no, why are you selling them?"