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According to the new law, the Attorney General must establish and maintain a public, online directory identifying (1) manufacturers of liquid nicotine and nicotine vapor products and (2) each certified SKU that’s cleared for sale. Certifications may be submitted by manufacturers of the products or by an intermediary such as a wholesaler or retailer. Only products that either have marketing authorization or a timely submitted PMTA may be listed on the directory. The directory must be updated by the AG as needed and made available for public inspection. Initial certifications require a fee of $2,000 per SKU, and certifications must be renewed annually for $500 per SKU.
Virginia’s rule is straightforward: No listing, no retail sale. After publication of the directory, retailers will have a 60-day sell-through period within which to sell current stock of products not on the directory. After that sell-through period, no person may sell, distribute, import for resale, or offer for sale any liquid nicotine or nicotine vapor product unless that specific product appears on the directory. The law also separately prohibits manufacturers from selling (directly or through wholesalers/distributors/retailers) any product not on the directory.
Retailers will be subject to compliance checks for the purpose of enforcing the new directory law. If a retailer (or any “person” engaged in sale or distribution) offers a product that isn’t listed, the business is subject to a civil penalty of $1,000 per day for each non-listed product. Manufacturers face the same $1,000 per day per product civil penalty if they sell into Virginia (directly or via intermediaries) products that aren’t on the directory, with the penalty clock running until the product is removed or properly listed.
As vapor product directories have become more common across states, legal challenges have mounted. Industry groups essentially argue that this type of enforcement is specifically reserved for FDA by the Tobacco Control Act. Courts are starting to split on the issue, indicating a possible future Supreme Court weigh-in. We don’t, however, advise that retailers wait for the outcome of litigation to implement a plan for compliance with Virginia’s new directory statute.
If you are a retailer or distributor of vapor products in Virginia, this new law may significantly impact your business.
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