The ice and fire of Aiqiji: the market is booming, but regulatory risks are constant

The ice and fire of Aiqiji: the market is booming, but regulatory risks are constant

 

On June 12, the World Vape Show opened in Dubai. The booths of ELFBAR and LOST MARY, brands under Love Miracle, attracted a lot of attention and interaction from the audience. However, ELFBAR has recently faced regulatory pressure from the United States, the United Kingdom and the European Union.

 

On June 12, the World Vape Show opened in Dubai. The booths of ELFBAR and LOST MARY, e-cigarette brands under Love Miracle, attracted many visitors. In addition, many visitors lined up to participate in game interactions and to receive peripheral products.

Recently, ELFBAR has encountered regulatory pressure from the United States, the United Kingdom and the European Union, and has become the focus of attention of many institutions and politicians. In addition, Reynolds Tobacco of the United States has launched a 337 investigation against 42 companies including Love Miracle to the United States International Trade Commission in accordance with Section 337 of the Tariff Act of 1930.

 

Love Miracle High-profile Release: "Redefining the Next Generation of Electronic Atomization"

 

Before the official launch of the World Electronic Cigarette Exhibition, an article titled "Redefining the Next Generation of Electronic Atomization: Love Miracle Brings More Twenty New Products to the World Electronic Cigarette Exhibition" appeared on the official WeChat account of Love Miracle "HG Love Miracle" and a number of industry self-media. The article stated that "ELFBAR and LOST MARY have launched more than 20 new products and redefined the innovation of the industry with four major trends." The article pointed out that as of now, Love Miracle's business has spread across more than 100 global markets, serving more than 30 million adult users. Its brand products ELFBAR and LOST MARY have occupied a leading market share in major regions such as Europe and the United States.

It is worth noting that the article also emphasized the "Lighthouse" Youth Guardian Program of Love Miracle, which is "actively practicing the "three no's" measures of electronic vaping products that teenagers can't see, hear, or buy, and strictly regulate their own behavior from product development, market, promotion to sales, and prohibit teenagers from contacting electronic vaping products."

 

Whether it is the high-profile appearance of the Dubai Exhibition or the concentrated launch of many new products, it can be seen that Love Miracle is ambitious on the market side. However, in the main market of Love Miracle, regulatory "alarms" continue to come.

 

United States: Chairman of the Senate Judiciary Committee named and accused ELFBAR and other illegal e-cigarettes of not being authorized

The U.S. Senate Judiciary Committee held a hearing on June 12 on the theme of "Combating the Youth E-cigarette Epidemic by Strengthening Enforcement of Illegal E-cigarettes". At the meeting, the popularity of the ELFBAR brand attracted widespread attention from the Senate. The U.S. FDA and the Department of Justice were severely criticized for failing to effectively curb the proliferation of illegal e-cigarettes.

 

Senate Judiciary Committee Chairman Dick Durbin (D-N.Y.) noted that the FDA and the Justice Department have allowed thousands of products to be sold on the market even though manufacturers have not obtained authorization, particularly flavored products that are clearly designed for children.

Brian King, director of the FDA's Center for Tobacco Products, noted that products like ELFBAR cannot be legally sold in China because the Chinese government has banned non-tobacco flavored e-cigarettes. He also said that the FDA has taken measures including issuing warning letters and civil fines, and has worked with agencies such as the Consumer Protection Bureau to combat illegal products. However, the approval process has slowed down due to a backlog of applications submitted by e-cigarette companies.

 

The FDA and the Department of Justice have announced the establishment of a new working group to deal with this issue.

 

EU: ELFBAR's new product is accused of circumventing regulations

 

In the UK, the Daily Mail reported that ELFBAR's new AF5000 e-cigarette faces charges of circumventing UK nicotine laws because the e-liquid capacity exceeds the legal maximum capacity. The product is equipped with a 2 ml built-in e-liquid tank and a 10 ml refill tank, claiming that the number of puffs can reach 5,000.

Steve Brine, former chairman of the House of Commons Health Committee, and Caroline Johnson, a former Conservative MP, expressed concerns that the new product could fall into the hands of young people and called for it to be removed from the market.

 

The Daily Mail also said that the EU has issued a warning to member states about this "dangerous" device, which may lead to a Europe-wide ban.

In response, ELFBAR said that AF5000 complies with legal requirements and is investigating the EU's alert.

 

United States: Reynolds Tobacco launches 337 investigation against 42 companies including Ai Miracle

 

On June 13, RAI Strategic Holdings, Inc., R.J. Reynolds Tobacco Company, RAI Services Company, and R.J. Reynolds Vapor Company filed an application with the U.S. International Trade Commission (ITC) in accordance with Section 337 of the U.S. Tariff Act of 1930, alleging that certain electronic cigarette products (Certain Disposable Vaporizer Devices and Components Thereof) exported to, imported into, or sold in the United States infringed their patent rights, and requested to initiate a 337 investigation and issue a general exclusion order, a limited exclusion order, and a cease and desist order.

Forty-two companies including China, the United States and the United Kingdom, including AiMiracle, were listed as proposed defendants.

 

A Lawyer's Perspective: The Balance between Compliance and Innovation

 

Tang Shunliang, a partner at Tianyuan Law Firm who has long been paying attention to the e-cigarette industry, told Two Supremes that innovation must also be subject to compliance.

 

He pointed out that in the e-cigarette market, consumer behavior often runs counter to rational choices. Although compliant products can provide health and safety guarantees, consumers seem to be more inclined to follow popular trends in the market.

 

This phenomenon is reflected in both domestic and foreign markets. Compliant products often have difficulty attracting consumers' attention, while products with novel appearances or unique tastes are more likely to arouse consumers' desire to buy.

 

In addition, many innovations on the market may seem simple and lack technical depth, but they can quickly become popular. For example, the screen design of some e-cigarettes may not have significant technological innovation, but once it becomes a trend, it can quickly attract the attention and pursuit of a large number of consumers.

 

However, innovation in the e-cigarette industry should not just stay on the surface. Its core should be to ensure a pleasant sensory experience while minimizing harm to consumers' health. This means that manufacturers need to find a balance between innovation and compliance when designing and developing new products, so as to satisfy consumers' pursuit of novelty without sacrificing product safety and legality.

 

Tang Shunliang believes that the healthy development of the e-cigarette industry requires the joint efforts of manufacturers, regulatory agencies and consumers. Manufacturers should strive to develop products that are both safe and attractive, regulatory agencies need to strengthen law enforcement to ensure market regulation, and consumers should increase their awareness of the importance of health and safety and make more rational purchases. choose.