Deeming Regulations Are In Effect

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Bob Chill

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The deeming released thread is massive. mods delete this if it is inappropriate. I thought it might be a good idea to have a thread dedicated to the marketplace effects and/or disruption now that regs are in action enforcement is possible (or imminent).

Hopefully we can stay on topic with factual evidence or evidence based opinons only.

The one thing I keep seeing is stating that the USPS cannot legally ship vape gear and liquid. I don't believe that is true at all. Unless the PACT Act is modified, there are zero laws currently in place other than specific States prohibiting mail order. tobacco products are not the same classification as cigarettes and other products specified in the PACT Act.

Overseas orders should be fine unless they include post 8/8 released gear. And it will be a crap shoot as to how that is enforced. Personally, I hope folks refrain from ordering stuff they know they shouldn't. No sense creating a problem with overseas shipping that could in fact hurt the process for totally compliant gear. The less attention and scrutiny on overseas stuff the better. However, we can most likely expect stories of confiscation of non compliant gear in the future.

From what I understand, there is a distinct difference between what is considered an "importer" and "manufacturer". To stay insulated from the manufacturer designation you simply can't modify the product or packaging. For individuals like us we are just importers for personal use. Vape shops can avoid manufacturer designations by simply reselling anything but not modifying, mixing, or building anything. I think many will go that route. Just sell popular stuff and rely on standard retail margins to stay afloat. Avoiding inspections and registrations is probably a good idea if you can remain profitable.

Age verification is taking on multiple shapes now. And it's going to be a PITA over the short term but should become organized and easy. I understand concerns about personal info being released to all kinds of different sources. That will be an individual decision on risk/reward. I'm sure members will be posting positive and negative feedback as we go. The one question I have is delivery without signature. Seems like vendors are taking care of point of sale but not delivery. I don't know what is compliant and what isn't so if anyone has insight, please provide.

Nic base is an unfinished product so it skirts th regs for now. I would keep an eye on that though. Unfinished product direct to consumer may be addressed and it may come suddenly. Imo- buying nic base for personal use does not make the user a manufacturer. Similar analogy would be brewing your own beer. You are not a brewer subject to anything unless you sell it. Flavorings are in the same boat for now. Unfinished product.

I'm personally not worried about paypal/credit card companies. If they pull out they can disrupt the market but with billions of dollars to be spent yearly, I'm certain a secure payment system will always be available. Paypal/credit card companies make a lot of money from vape transactions. They are probably reluctant to pull out as it is. I just don't see electronic transactions creating a barrier on this. We should be totally fine there but just my opinion.
 

sofarsogood

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PayPal will deny vape transactions, if they catch them. It's been that way for quite some time. Many credit card processing companies have also refused to service e-cig companies, for a while now.
It would be interesting to see some evidence of that.

I wonder what the first actions related to FDA rules will be. Will a shop get busted by the FBI for selling under age? That has the feel of a nation wide headline, yup. Will somebody get in trouble for selling forbidden drip tips that are 2 microns different in size from the previous batch?

The FDA rules say it's illegal to sell vape stuff to kids but does the rule say it's illegal for kids to possess ecigs? Can parents get arrested if they buy ecigs for their kids? Shouldn't we be reading news stories about kids being rounded up and prosecuted for having vape stuff? Thanks to the FDA vaping is now a form of rebellion for kids. May be that's a better way to rebel than smoking or drinking.
 

Haktuspit

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    PayPal will deny vape transactions, if they catch them. It's been that way for quite some time. Many credit card processing companies have also refused to service e-cig companies, for a while now.

    I thought this was just an issue with the Paypal credit card, correct me if I'm wrong. Because I've had orders from all types of obvious e-cig vendors flying through my Paypal account.
     

    FishingBuffalo

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    From what i understand about what constitutes manufacturing, if you go to a vape shop and get a Cuboid and a Tobeco Super Tank for example and the shop connects the tank on the mod (even if it is a demo) they will be considered manufacturers. There are a great number of people that would need help getting their devices operational, good shops do this (maybe not so much anymore unless we win the court battles or get Congressional action) as a customer service AND TO EDUCATE!
     

    Bob Chill

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    PayPal will deny vape transactions, if they catch them. It's been that way for quite some time. Many credit card processing companies have also refused to service e-cig companies, for a while now.

    Paypal could step out of the big picture. But I don't think it will matter. Supply/demand/profits will rule the day. Higher risk credit card processors will fill the void. They can use a gateway like authorize.net for online sales. In the states the only big use of paypal for vape stuff is Ebay. Would it really be that big of a deal if ebay stops vape sales all together? I don't think it would be. Someone else will capitalize. With the age restrictions now in effect I believe that Ebay will be forced to step out at some point. Ebay has always operated in muddy water for years and nobody has cared all that much. It's a strange business in some ways.

    I've worked in the card processing industry before. There is always a processor available for any legal business. There is a huge laundry list of business types that are restricted including things like adult entertainment, pyramid schemes, time shares, monthly subscription (credit repair, legal advice, etc), gambling, drop shippers, and on and on. The primary 2 reasons for "high risk" classification is potential illegal sales and more importantly chargebacks.

    Now that vape gear is being regulated it will actually open the door for more processing companies to offer services. Vaping operated in a grey area of sorts for electronic transactions. There was no regulation and it was a fringe product. With some structure to the market and proven limited chargeback history I think payment processing will be the least of our worries no matter who does what.
     

    Haktuspit

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    So will the next story be of someone who had a mod explode because the clerk was not allowed to show them or even tell them how to operate it safely? It makes no sense not be able to help out a customer.

    What if that was the goal with this part of the regulation all along?
     

    Bonskibon

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    What if that was the goal with this part of the regulation all along?
    It could backfire. Of course no one wants to see accidents happen, but if they should, the complaint could very well gear towards the FDA and their stance on not allowing shop owners to inform customers.
     
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    Bob Chill

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    Such weird times.

    The deeming regulations specifically state liquid nicotine will be consider the same as eLiquid. I don't think it skirts the regs at all.

    The suppliers think differently. At least for now. This is a quote from Nude's site:

    "Just a friendly reminder for you DIYer’s and entrepreneurs regarding the August 8th date – No hiccups and delays as of yet – no regulations on “non-final” tobacco products (raw materials) have been released. It is a good time to stock up, but no “doomsday date” has been set. We will keep everyone informed on public restrictions "

    I would assume this is at the advice of their lawyer. I'll check with a couple more suppliers and see how they interpret the regs.
     

    Bob Chill

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    Are they at least allowed to show proper usage of the product and answer customers questions?

    They can but then they are required to register and comply as a manufacturer. It's a rock and a hard place. Go the easy route and just resell prepacked stuff and be a simple retailer. But if you want to wrap coils and assemble mods and tanks for a customer you are then a manufacturer.

    Same dumb logic applies to pipe shops who want to make their own custom blends of pipe tobacco. They are now a manufacturer.

    From a regulatory and cost of doing business aspect there is a huge gap between retailer and manufacturer. But in the end the customer is on the losing side. This isn't ground breaking type of regulation. There's plenty of other cases where the consumer is the biggest loser.
     
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