NM DOJ Goes After Illegal Vaping Products

Albuquerque, NM – Attorney General Raúl Torrez today took another critical step in his effort to curb sales of illegal vaping products to protect New Mexico’s youth. AG Torrez joined a bipartisan coalition of 25 attorneys general and the City of New York in urging major credit card companies and payment processors to take stronger action to prevent their payment networks from being used to facilitate sales of illegal vaping products. In letters sent to corporate leadership of each company, AG Torrez and the coalition call for immediate collaboration to block unlawful transactions that enable the widespread distribution of these products, particularly to young people. 

“Protecting our kids from illegal vaping products requires action at every level of the supply chain, including how these products are bought and sold online,” said Attorney General Raúl Torrez. “Payment processors and credit card companies have the ability, and the responsibility, to help stop unlawful transactions that put dangerous products in the hands of young people. By joining this bipartisan effort, we are sending a clear message: if you are facilitating illegal sales, you are part of the problem. We’re calling on these companies to work with us to close these gaps and put the health and safety of our communities first.”  

The coalition sent letters to major credit card companies and payment processors, including American Express, Capital One, Citi Group, Mastercard, Visa, PayPal, Stripe, Sezzle, and Block (operator of Square, Cash App, and Afterpay), compelling them to take action. Copies of the letters are attached. 

Federal law requires that all e-cigarette products receive authorization from the U.S. Food and Drug Administration (FDA) before they can be legally marketed or sold in the United States. To date, the FDA has authorized only 41 e-cigarette products, none in flavors other than tobacco or menthol, meaning the vast majority of vapor products sold are illegal. Products that have not received FDA authorization are considered “adulterated” under federal law and cannot legally be sold or shipped in interstate commerce. 

Last month, AG Torrez announced the NMDOJ’s lawsuit against major convenience store chains and distributors for their role in selling illegal, flavored disposable e-cigarettes that are driving youth nicotine addiction across the state. The coalition argues that payment processors also play a critical role in stopping these illegal sales at their source. 

AG Torrez and the coalition are calling on the credit card companies and payment processors to take meaningful steps to prevent their services from being used to process illegal e-cigarette transactions. Specifically, they are requesting a meeting to discuss solutions, including prohibiting merchants and payment processors that violate federal, state, and local laws from using their networks. The coalition emphasizes that collaboration between government and the private sector has successfully reduced illegal tobacco sales in the past and is essential to addressing the current surge in unlawful vaping product distribution. 

Joining Attorney General Torrez in sending the letters, which were led by the attorneys general of New York, Pennsylvania, California, and the City of New York, are the attorneys general of Arizona, Connecticut, Delaware, Hawaii, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, North Carolina, Oregon, Rhode Island, Tennessee, Vermont, Washington, Wisconsin, and Puerto Rico.