E-commerce platform Shopify is set to prohibit the sale of vape products across its platform as early as this week, following sustained pressure from a bipartisan coalition of U.S. state attorneys general seeking to curb the sale of illegal e-cigarettes online.
The move represents one of the most significant actions taken against the rapidly expanding illicit vape market, which authorities estimate is worth about $9 billion in the United States.
According to sources familiar with the matter, Shopify has been engaged in discussions with a group of 25 state attorneys general since last year over concerns that illegal vape products continue to be widely sold through online channels.
The Ottawa-based company provides the technology infrastructure that powers millions of online stores globally. The expected policy change would prohibit the sale of all vape products on the platform in the United States, regardless of whether they have received authorisation from the US Food and Drug Administration (FDA).
A Shopify spokesperson said the company has consistently acted against unlawful activity on its platform.
“We’ve always prohibited illegal activity and take action when we become aware of merchants violating our policies,” the spokesperson said.
The company added that enforcement decisions are guided by legal requirements and evolving regulatory frameworks rather than pressure from any single group.
The crackdown comes as regulators intensify efforts to dismantle the infrastructure supporting illegal vape sales. Many of the products being targeted are manufactured in China and sold in the United States without the required regulatory approvals.
Although illegal to import or sell, such products remain widely available through online retailers, vape stores, convenience stores and gas stations.
Industry analysts believe Shopify’s decision could significantly disrupt online vape sales and create additional pressure on merchants operating in the sector.
The FDA has authorised only a limited number of e-cigarette products for legal sale in the United States, most of them tobacco-flavoured. Major tobacco companies have argued that the restricted approval process has inadvertently fuelled the growth of the illicit market.
The anticipated Shopify ban is expected to have a limited impact on licensed manufacturers because authorised vape sales are generally concentrated in physical retail outlets rather than online platforms.
The regulatory pressure is also extending into the payments sector.
Credit card giant Mastercard recently warned financial institutions that facilitate transactions for merchants that selling unlicensed vape products could violate the company’s standards.
In guidance issued to its network partners, Mastercard stressed that financial institutions are responsible for ensuring merchants comply with applicable laws and regulations.
The company recommended stricter monitoring of merchant inventories, invoices and transactions to identify potentially unlawful vape sales.
Mastercard also warned that retailers and payment processors found facilitating illegal vape transactions could face investigations and possible financial penalties.
“We have zero tolerance for unlawful activity on our network,” the company stated.
The latest actions underscore growing efforts by US authorities to restrict access to illegal vape products and strengthen oversight of both online sales channels and payment systems supporting the industry.
Erizia Rubyjeana
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