FDA regulations may cause 99% e-cigarette companies bankrupt

On November 14, the House of Representatives’s comprehensive spending bill released in the evening showed that a policy amendment that could have saved the e-cigarette industry failed to pass.

The efforts to change FDA rules failed.

This amendment is a change to FDA regulations. According to the original FDA regulations, e-cigarette products released after February 15, 2007 must go through the expensive pre-market tobacco application process. This is a huge burden for small businesses.

This regulation is very important for electronic cigarette companies and advocates. Because the cost of PMTA processes of each product may be between $2 – 10 million.

However, the main part of the market consists of small self-operated enterprises. Such a huge tax burden is likely to allow 99% of the industry to go bankrupt.

In addition, electronic cigarettes are relatively new innovations and the industry has developed very quickly. As a result, most electronic cigarette products will be under the jurisdiction of FDA proposal rules.

The FDA is protecting the traditional tobacco companies by destroy e-cigarette companies.

In fact, small electronic cigarette companies usually sell dozens or even hundreds of such products in stores. They will not be able to bear this financial burden. As a result, this will lead to risks of thousands of jobs and ultimately restrict the choice of electronic cigarette users.

The only company that can bear this financial and regulatory burden is these large tobacco company. Compared with most electronic cigarette stores, the types of electronic cigarette products of these companies are extremely limited.

It is ironic that the FDA aims to protect the public health of the public may have a reaction. By destroying one of the largest sources of competition in the tobacco industry -independent e-cigarette companies to help the tobacco industry.

Gregory Conley, President of the American Vaping Association says that,

“Without a change in the 2007 grandfather date, 99.9 percent-plus of vapor products on the market today will be banned. This is nothing more than modern-day prohibition. The FDA’s proposal is an unmitigated disaster and Congress’ failure to act will cost jobs and lives.”

Brand e-cigarette manufacturer comment on this.

Mr. Frankie Zhou, General manager of the brand e-cigarette manufacturer, VPFIT, also express dissatisfaction to this.

“The FDA is destroying the e-cigarette industry. This will strike many of the e-cigarette manufacturers, brands, distributors, and retailers in this industry. In addition, if the e-cigarette industry fall down, the e-cigarette users will turn back to traditional cigarette. That’s not protect the public health, but harm it.”