Nicotine - Illicit, Bootleg, & Alternative Markets

Regulations, Laws, and Money motivate people to circumvent the rules and to seek alternative ways to get products to consumers. As lawmakers look at future regulations, they must consider the unintended consequences of those regulations. This page will attempt to track some of those consequences.

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Avoiding Taxes

2020: Article: Native American Reservations a Haven for New York Vape Shops

• New York State’s 20 percent excise tax on vapor products and nearly 9 percent sales tax also do not apply to the Shinnecock and other tribes. Essentially, Silva said, patrons can spend almost 30 percent less than they normally spend, and nobody has to worry about breaking the law.

Black Market

2020: Article: Native American Reservations a Haven for New York Vape Shops

• “I’m going to speculate, but I think the black market is still so significant that we’re not seeing any spillover,” he said of his solid business so far. “You would figure that we’d be stampeded. That’s not been the case.”

Counterfeit

2020: Article: State police: Man was peddling counterfeit vape devices

• Massachusetts, USA
• He was charged with sale of electronic nicotine systems with expired registrations and with forging stamps and symbols.

Crossing Borders / Alternative Locations

2020: Article: Native American Reservations a Haven for New York Vape Shops

• Because they are members of the tribe and conduct business on their sovereign land, the New York State flavor ban does not apply.

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