The US Postal Service Has Banned Demand Vapes From Using Its Express Delivery Service in An Effort To Support The Tobacco Giant.

Reuters News reported on August 11th: The United States Postal Service (USPS) has banned Demand Vape, headquartered in New York, from using its commercial delivery services. The reason is that evidence has been received showing that the company is distributing unregulated electronic cigarettes. This move has dealt a blow to the multi-billion-dollar electronic cigarette market that is eroding the sales of traditional tobacco giants.
Law enforcement background: The legal department of New York City provided USPS with evidence that Demand Vape violated the law (including local flavor restrictions).
Affected parties: This decision may benefit tobacco giants such as Altria and BAT, who have long opposed unregulated electronic cigarettes.
Nature of the violation: Unregulated electronic cigarettes lack the authorization of the US Food and Drug Administration (FDA) and are therefore illegal sales. On July 15th, USPS revoked Demand Vape's delivery exemption, stating that it had transported products that were not approved by the FDA and violated the flavor restrictions.
Company response: Demand Vape claims that it complies with the law, that the industry is in a "regulatory gray area", and is defending itself.
Legal framework: Since 2021, the US Postal Service has prohibited the mailing of electronic cigarettes to consumers, international destinations, and most other scenarios. Only a few enterprises that comply with regulations are allowed to send deliveries.
Market size: British American Tobacco estimates that the unregulated electronic cigarette market in the United States was worth approximately £6 billion (about $8.05 billion) in 2023, facing pressure from tariffs, port seizures, and FDA enforcement.
Business scale: Demand Vape is one of the largest electronic cigarette distributors in the United States, supplying approximately 5,000 retailers in 49 states. New York City lawyers claim to have provided USPS with sales invoices for FDA clearly listed illegal products.