United States: Philip Morris fined $1.2 million for illegal sale of flavored nicotine pouches

Philip Morris International subsidiary Swedish Match North America will pay $1.2 million in an investigation into violations of Washington state’s ban on flavored tobacco and nicotine products. The District of Columbia attorney general’s office said it has evidence that Swedish Match facilitated the online sale of “tens of thousands” of Zyn flavored nicotine pouches to consumers in the District of Columbia between October 1, 2022, when the ban was enacted, and June 30, 2024.[1].

The Washington, D.C. City Council banned the sale of all flavored tobacco and flavored nicotine products in October 2022. The ban covers all flavors other than tobacco. Similar bans on flavored products are also in effect in California, New York, and Massachusetts.

Sales that were made from the manufacturer's website

ZYN is the most popular nicotine pouch brand in the United States, and nicotine pouches are the fastest-growing category of nicotine products in the country. In its first-quarter results released in April, shipments of Zyn nicotine pouches increased nearly 80% year-over-year. Swedish Match, which is also the world's largest producer of Swedish snus, was acquired by Philip Morris International (PMI) in 2022.

On June 17, 2024, Swedish Match announced that it had received a subpoena from the Attorney General of the District of Columbia requesting, among other things, information about compliance with the sale of flavored tobacco and nicotine products in Washington state. The DA’s investigation revealed that between October 1, 2022, and June 30, 2024, Swedish Match facilitated the sale of flavored Zyn products to consumers in the District. The manufacturer did so through its website, shop.zyn.com, and distributed its products to several other digital platforms and independent sellers. These practices constitute violations of the District’s flavor ban and the Consumer Protection Procedures Act (CPPA).

“Flavored nicotine products like Zyn pouches are banned in the District precisely because they are dangerous, addictive, and threaten to reverse the tremendous progress we have made in reducing youth smoking,” District of Columbia Attorney General Brian Schwalb said in a press release. He added that his office will vigorously enforce the ban and will always intervene to “protect the health and safety of our children.”

In addition to the $1.2 million payment to the district, the decision Swedish Match plans to increase its monitoring of its distributors to ensure compliance with the flavor ban in the future, through quarterly inspections and action to stop violations. Persistent violators may have their distribution agreements terminated. Swedish Match will also be required to remind its distributors and retailers in the District of Columbia annually of their obligations regarding the flavor ban and applicable laws.

Banned products but very accessible to minors

Zyn has also been in the federal government’s crosshairs for sales to minors. In April 2024, the Food and Drug Administration said it had sent 119 warning letters to retailers and filed 41 civil complaints over sales of Zyn to underage buyers last year and this year. In its statement about the subpoena, Phillip Morris reiterated that all online buyers of Zyn products undergo a comprehensive age check to ensure they are 21 or older before they can make a purchase.

A simple search on a search engine reveals many websites selling ZYN sachets in the United States, and this without any age verification at the site entrance or at the time of purchase. Test purchases made in some cities also show that no age verification is carried out at the time of receipt of the package, and this despite the provisions of the law in this area.[2].

Ban Not Respected in California

Last September, a lawsuit was filed against San Francisco online retailers that the city says are violating a ban on the sale of flavored nicotine products. City Attorney David Chiu condemns the tobacco industry’s efforts to directly target young people with these products. The lawsuit, filed in San Francisco County Superior Court, accuses companies including Northerner Scandinavia and Swisher International of selling flavored Zyn products in violation of the ban.[3].

©Tobacco Free Generation

AE

[1] Reuters, Philip Morris to pay $1.2 mln to settle probe into flavored tobacco ban violation, published on December 13, 2024, consulted on December 16, 2024

[2] Generation without tobacco, San Francisco sues retailers for illegally selling nicotine pouches online, published on September 11, 2024, consulted on December 16, 2024

[3] Joe Burn and Gabe Greschler, City targets online sales of flavored Zyn nicotine pouches in lawsuit, The San Francisco Standard, published September 4, 2024, accessed December 16, 2024