What the PACT Act Compliance Means for the Vape Industry

The simulation of tobacco smoking using electric devices is usually referred to as vaping. Vaping has been proven to be less harmful than conventional cigarette/tobacco smoking, and vaping devices have not been proven to do anyone harm. Vaping also helps people stay off cigarette and tobacco smoking. Nonetheless, the new Prevent All Cigarette Trafficking (PACT) Act mandates the US Postal Service to stop the shipping of e-liquid and vaping hardware. It also dictates to other players in the shipping industry (FedEx and UPS) what their roles will be and what they will liable for if they agree to ship vapers, e-liquid, and vaping hardware.   

The bill also mandates carriers like FedEx and UPS to ask the recipient for a valid means of identification before the vaper is delivered to him/her. A form also has to be filled and signed. The major concern here is the logistics involved since the delivery agent will have to wait for the person concerned if he/she is not available since the agent will be held liable if the item falls into the hand of an underage user. Most companies involved in logistics will not want to handle those online requests to avoid a possible lawsuit. The law states a maximum penalty of 3years jail term or a fine as the case may be.

As a seller/retailer, the PACT act mandates that you collect state and local taxes before products are shipped to customers. Dealers are required to register with the federal government. Details such as the names of each customer and their address are to be collected. The retailers are also mandated by the law to provide details of their monthly tax returns to the state authorities where their products are shipped to.

What Does the PACT Act Entail

  • It prevents the US postal service from shipping vapers and vaping devices.
  • For private firms like UPS and FedEx, a customer inquiry form will be filled by the recipient of the item with prove most likely a voters identification card
  • The retailer is mandated by law to trace the shipment through the federal, state, and local governments. For every stage of the delivery, it has to be reported to the appropriate authorities.
  • It is advisable to employ legal counsel to help with parts of the local laws enacted by municipals, local counties on vaping so as not to violate local laws.
  • It is advisable to have photographic proof of what you are selling just in case a mix-up arises on the part of the carrier. This is meant to help you in the courts.

The major flaw with the law is that most of the liability and legal hits will be taken by the retailers of the vapers and vaping products. The act will discourage smaller firms in the vaping industry and may likely lead them to close shop. The ripple effect is that company employees will be laid off while the government loses revenue in the form of taxes.

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