Dive Brief:
- A group of state attorneys general, plus the City of New York, is urging nine major credit card and payment processing companies to prevent the illegal sale of e-cigarettes and other nicotine and tobacco products to underage consumers, according to a press release last week.
- The coalition, including 25 attorneys general, sent April 28 letters to American Express, Capital One, Citigroup, Mastercard, Visa, PayPal, Stripe, Sezzle and Block to request each company share its availability for meetings to “comprehensively” address unlawful sales, the release on the same day said.
- The letters called upon the companies to take stronger action to prevent illegal tobacco sales online and at brick-and-mortar stores, according to the press release. “While progress was made, e-cigarette use among young people has grown exponentially over the past fifteen years, creating new challenges that require a comprehensive solution,” the release said.
Dive Insight:
Attorneys general across the country are enlisting payment companies as they seek to rein in the sale of tobacco, nicotine and e-cigarettes to young consumers. Their coordinated action comes as federal, state and local governments work to stop young people from smoking e-cigarettes, the release noted.
New York City and the attorneys general from California, Pennsylvania and New York led the coordinated campaign while the other AGs joined in on the letters, the release said.
The letters noted that the federal Centers for Disease Control and Prevention has determined that youth use of tobacco products in any form is unsafe, although a hyperlink in the letter for that information didn’t connect to any such determination on the federal agency’s website.
The letters also called attention to prior efforts by some members of the coalition to take the Canadian online retailer Shopify to task for unlawful e-cigarette sales on its e-commerce platform.
“Illegal e-cigarette sales remain widespread, posing a serious public health concern and requiring a more robust response,” California Attorney General Rob Bonta said in the release. “Payment processors and financial service companies have a responsibility to ensure their platforms are not being used to facilitate these illegal sales. We are calling on nine major credit card processors to be part of the solution and help protect our communities — especially our kids.”
In their letters, the attorneys general cited the federal Prevent All Cigarette Trafficking Act of 2009, which requires online sellers to use age-verification practices, labeling and weight requirements and comply with state, local and tribal laws governing e-cigarette sales. The letters also cited some states’ “flavor bans,” explaining that flavors should be restricted because they can make the products more appealing to young users.