This is paypal's official statement on its help center. Perhaps they are incorrectly including E-Cigarettes as a tobacco product.
"PayPal generally prohibits transactions for all types of tobacco products, including cigarettes, cigars, and smokeless tobacco due to legal requirements and industry regulations for online tobacco sales."
Any merchant selling these products and offering PP is either doing so without PP's knowledge or with written permission. That permission can be revoked by PP at any time, for any reason, without explanation, and without recourse by the merchant.
And a reply from a paypal user after another user pointed out that E-Cig's are not tobacco. Paypal came down on them once they found out.
I just got spanked for selling an ecig starter kit, which included 6 refill cartridges that had 0mg nicotine...none. I wonder how much big tobacco companies paid Ebay and PP? Isn't there a law against restricting legal trade in this country? This is completely wrong....I feel like I don't live in America anymore. Basically, it's okay to consume nicotine, as long as it's in the most toxic disguise. :smileysad:
Another post :
Paypal does not let you buy e-cig related stuff anymore through their service. Long involved story but there are still some vendors who haven’t been “caught” by Paypal yet. If your vendor still accepts paypal DO NOT mention e-cigs in a review or rating or comment. Just pay for the “goods” & complete the transaction. This does not mean the vendor is shady or unreliable, it could just mean they don’t have an alternate payment method in place yet.
And from another site :
Previously, ASH, in a legal letter sent to PayPal, advised the company that providing payment for electronic cigarettes "appears to be aiding and abetting the sale of these illegal products by providing payment vehicles to Internet sites which are selling them, and doing so in interstate commerce and in possible violation of consumer protection laws in the individual states."
PayPal was also warned that: "As the FDA and others have noted, electronic cigarettes pose a wide variety of potential dangers to users, and perhaps also to those around them, both of whom inhale a mixture of nicotine (a dangerous drug) and propylene glycol (which is used in antifreeze and may cause respiratory tract irritation
In response, PayPal is no longer facilitating the sale of this product. Facebook has reportedly decided that "we do not allow ads for electronic cigarettes and will not allow the creation of any further Facebook Ads for this product."