Brother and sister-in-law made over 1 million yuan from unlicensed e-cigarette sales, prosecuted for
With the popularity of e-cigarettes among young people and online, many businesses have started selling e-cigarettes. The "E-cigarette Management Measures" implemented on May 1, 2022, clearly states that those engaged in the production and operation of e-cigarette products must obtain a tobacco monopoly license. However, some still violate the law by selling e-cigarettes online without permission. Recently, the Baoshan District Procuratorate prosecuted a case of illegal e-cigarette operation.<\/p>
Case Review<\/strong><\/p> In February 2023, based on tips, public security authorities seized over 1,400 sets of Smokiss e-cigarettes and over 3,500 sets of Dior & Smokiss co-branded e-cigarettes in a warehouse in Baoshan District. It was found that these e-cigarettes were promoted and sold by siblings Zhou A and Zhou B, neither of whom had the relevant tobacco monopoly license.<\/p> E-cigarette Storage Warehouse<\/strong><\/p> After their arrest, the two confessed that the e-cigarettes came from Zhou A's friend, Gao.<\/strong><\/p> In August 2022, Gao claimed to have the right to operate Smokiss and Dior fruit-flavored e-cigarette products, which were profitable, and wanted Zhou A to be the national agent for these two brands. After discussing with his sister Zhou B, they decided to engage in e-cigarette sales. They signed a contract to sell e-cigarettes with Gao's company, purchasing e-cigarettes worth 2 million yuan, with over 100 boxes stored in a warehouse in Baoshan District. These e-cigarette gift boxes came in two shapes: a milk tea cup and a long strip with the Dior logo, both containing disposable vape pens, e-liquid, and trendy figurines.<\/p> Chat Records with Gao<\/strong><\/p> Before the goods arrived, Zhou A had already posted promotional ads on WeChat Moments and Douyin, and promoted through word of mouth. After receiving customer orders, Zhou A sent the addresses to Zhou B, who contacted logistics for shipping.<\/p> It was verified that Gao had not obtained a tobacco monopoly license, and neither Zhou A nor Zhou B applied for relevant permits from the tobacco department. By the time of the incident, the siblings had illegally operated with amounts exceeding 1 million yuan.<\/p> The Baoshan District Procuratorate concluded<\/strong><\/p> Zhou A and Zhou B violated national tobacco monopoly management laws, illegally operating e-cigarettes without permission from the tobacco monopoly administrative department, with particularly serious circumstances. The facts of the crime are clear, and the evidence is sufficient, leading to the prosecution of the two for illegal operation. Currently, Gao's identity is also under further investigation.<\/p> During the case, prosecutors found that despite the implementation of the "E-cigarette Management Measures" in 2022, many manufacturers still produce and sell without obtaining a tobacco monopoly production enterprise license, and violations such as selling flavored e-cigarettes outside of tobacco flavors and failing to add Chinese labels and warnings on product packaging occur frequently. Additionally, the current e-cigarette sales often use short video platforms and WeChat groups for promotion, making regulation difficult. Furthermore, some businesses use co-branding with luxury brands, tie-in sales with trendy IP, and blind box lotteries as new promotional methods, which need to be addressed as e-cigarettes increasingly flow to younger demographics.<\/p> As a result, prosecutors issued recommendations to relevant functional departments, suggesting strengthening product quality management for e-cigarettes, enhancing supervision and inspection of online e-cigarette sales, increasing efforts to combat illegal e-cigarette operations, actively conducting legal awareness campaigns, and strengthening the protection of minors' rights.<\/p> Prosecutors stated<\/strong><\/p> Producing e-cigarettes that do not meet national standards, operating e-cigarettes without permission, and selling e-cigarettes to minors can jeopardize human health, disrupt market order, and affect the growth of young people. <\/p> Therefore, the procuratorial organs will fully utilize their functions, relying on the "Implementation Measures for the Coordination of Administrative Law Enforcement and Criminal Justice in the Tobacco Field of This District" signed with relevant functional departments, to strengthen cooperation and supervision of illegal e-cigarette operations, contributing to the maintenance of national interests and the physical and mental health of minors.
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