By Jason L. Cassidy and Daniel S. Herder, Attorneys at Ryley Carlock & Applewhite Anyone involved in the vaping business, or anyone who does business with the vaping industry, needs to be aware of big changes in federal law taking effect this month. On March 27, 2021, the “Preventing Online Sales of E-Cigarettes to Children Act” amends the PACT (Prevent All Cigarette Trafficking) Act to effectively regulate telephone and online sales and delivery of vaping products in the same manner as cigarettes. In a nutshell, vape shops that offer either remote ordering or delivery services will now be required to register themselves, report their monthly delivery sales, and prepay applicable state excise taxes on all delivered vape products. We’ll walk you through the highlights of these upcoming changes. These changes affect most vape shops. The Act will now apply to all vape shops that conduct “delivery sales.” This definition is broader than it appears. If any step in the ordering or delivery process occurs outside the four walls of a store (including orders placed online or over the phone, even if picked up at the store), the Act now applies. This means four primary changes to an affected vape shop’s business: 1. Vape shops need to register as tobacco sellers. The PACT Act requires each state to operate a registration system for tobacco delivery sellers, which will now include vape “delivery” sellers. Vaping stores will need to register as a tobacco delivery seller: (1) with the federal ATF; (2) with the appropriate agency in every state in which they advertise or sell product; and (3) with local and tribal governments that have their own
