Pudong Prosecutors’ Legal Education: Unlicensed Sale of Fruit-Flavored E-Cigarettes Leads to Three-Y

In recent years, electronic cigarettes

have gradually become a new favorite among many young people.

So, do you know what red lines cannot be crossed when selling electronic cigarettes?

To strengthen vaping regulation, the "Electronic Cigarette Management Measures" that came into effect on May 1, 2022, clearly stipulates that those engaged in electronic cigarette retail must have a tobacco retail license, and the trading of electronic cigarettes is limited to a national unified electronic cigarette trading management platform; the sale of flavored electronic cigarettes other than tobacco flavor and electronic cigarettes that allow the addition of atomization substances is prohibited.

However, some individuals, in pursuit of profit, are willing to violate the law by selling fruit-flavored electronic cigarettes without a license. Recently, the Pudong New District Prosecutor's Office filed a public prosecution, and the Pudong New District Court sentenced the defendant Chen to three years in prison, with a three-year probation, and imposed a fine of 90,000 RMB.

Knowing the law and breaking it, hiding a large number of electronic cigarette products at home.

On January 11, 2023, Pudong police seized a large number of electronic cigarette products from Chen's home, including electronic cigarette devices, pods, atomizers, and other items totaling over a hundred boxes. According to the Pudong New District Tobacco Monopoly Bureau's assessment, these tobacco products were estimated to be worth over 1.4 million RMB.

Previously, Chen had sold electronic cigarettes at a specialty store opened by Fu (another case). With the transition period for electronic cigarette regulation ending, the National Tobacco Monopoly Bureau issued a notice on strengthening electronic cigarette regulation, stating that starting October 1, 2022, the sale of electronic cigarettes must obtain a tobacco monopoly license and strictly comply with the "Tobacco Monopoly Law," "Implementation Regulations of the Tobacco Monopoly Law," and "Electronic Cigarette Management Measures" and other policy regulations for production and operation activities. Without a license, Fu closed the store but did not cease operations; to evade inspection, the two transferred all electronic cigarette products to Chen's home, where Chen was responsible for sales.

After being apprehended, Chen confessed to his criminal behavior. During the investigation, when asked by the prosecutor whether he understood the national laws and regulations, he lowered his head and admitted: "I know that selling electronic cigarettes requires a tobacco monopoly license, but I didn’t apply for one, and I wanted to make some money from this, thinking that I couldn’t be the only one selling them, so I took a chance, thinking it would be over soon."

Secretly selling prohibited fruit-flavored electronic cigarettes online.

Without a tobacco monopoly license, Chen continued to secretly engage in the electronic cigarette business online. By reviewing Chen's WeChat chats, transfer records, and witness testimonies, the prosecution confirmed that Chen promoted and sold electronic cigarettes through WeChat Moments or groups. The products Chen sold were mainly "fruit-flavored electronic cigarettes": including a variety of flavors such as strawberry, watermelon, pineapple, cola, tea, and coffee.

In recent years, many have labeled fruit-flavored electronic cigarettes as "fashionable" and "healthy," even calling them "non-toxic and harmless" and "smoking cessation tools." However, this is not the case; fruit-flavored electronic cigarettes, especially, can entice impressionable youth to smoke, leading to addiction, and low-quality "three-no" e-liquids can cause even greater harm to health. Moreover, flavored electronic cigarettes are more likely to be exploited by criminals, becoming carriers for new types of drugs. According to the notice issued by the National Tobacco Monopoly Bureau, starting October 1, 2022, fruit-flavored electronic cigarettes have been required to be completely removed from shelves.

The "Electronic Cigarette Management Measures" stipulate that "electronic cigarette products must comply with mandatory national standards for electronic cigarettes." However, according to the Shanghai Tobacco Quality Supervision and Inspection Station's assessment, the batch of electronic cigarettes seized from Chen were all non-compliant with the sales catalog of the National Tobacco Monopoly Bureau, with product packaging indicating non-tobacco flavors, failing to meet the requirements of the "GB41700-2022 Electronic Cigarettes" mandatory national standard.

The prosecutor stated: "Chen violated national regulations by selling electronic cigarettes without obtaining a tobacco monopoly retail license, and the circumstances were particularly serious, constituting the crime of illegal business operations under Article 225, Paragraph 1 of the Criminal Law of our country." Recently, the Pudong New District Prosecutor's Office filed a public prosecution, and the Pudong New District Court made the aforementioned judgment against the defendant Chen.

Prosecutor's reminder:

With the implementation of the "national standard for electronic cigarettes," the era of electronic cigarette regulation with standards and regulations has arrived. Here, the prosecutor reminds electronic cigarette manufacturers to actively cooperate with regulatory authorities, remove products that do not comply with the "Electronic Cigarette" mandatory national standards; the sale of electronic cigarettes must strictly adhere to the "Implementation Regulations of the Tobacco Monopoly Law," "Electronic Cigarette Management Measures," and other regulations to operate legally and compliantly; consumers should clearly recognize that electronic cigarettes are also harmful to health!