New Crisis For Cannabis Vape Industry

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New Crisis For Cannabis Vape Industry
<a href="https://pixabay.com/users/tomkohhantsuk/">tomkohhantsuk</a> / Pixabay

New crisis for cannabis vape industry: Mail ban in ‘stimulus’ could cripple supply chain, businesses, jobs, etc.

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There's a new threat to the cannabis / vaping industry that could negatively impacts hundreds (if not more) of businesses within the industry.

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Dana E. Shoched, president and CEO of 02VAPE, a leading vaping product manufacturer for consumers and wholesalers, says this bill could cost her business 60-70% of revenue and risk thousands of jobs across the country.

Bad News For The Cannabis Vape Industry Hidden In The Federal Stimulus Bill

This little-known act is buried in last December’s federal stimulus bill (found on page 5,136 here) will soon make it difficult or in some cases impossible for popular and responsible cannabis vape companies to deliver products to their customers.

The Preventing Online Sales of E-Cigarettes to Children Act modifies the 1949 Jenkins Act to categorize all components and elements used in ANY vaporizing device as a nicotine delivery device and forces shippers to comply with stringent rules, including registering with the U.S. Attorney General and maintaining and reporting addresses of delivery and quantities of products. The act creates significant barriers for the legal cannabis vape industry including potential prison time for even the slightest paperwork or reporting error, and deals a potential death knell to many vape product companies:

  • The act makes direct-to-consumer sales of vape products nearly impossible, and imposes crushing paperwork burdens and invasion of privacy issues on the entire vaping industry in the United States, increasing operational costs which will ultimately increase retail costs and force consumers to the black market.
  • As a result of the increased regulations, both Federal Express and UPS announced they will cease delivering vape products beginning March 1 and April 5, respectively. The United States Postal Service will cease residential delivery of vape products on April 26 as part of the legislation (except for FDA-approved products, keeping Big Tobacco safe).
  • The very broad language used in the bill may put a stranglehold on commercial B2B shipments (especially shipments to independent retailers), thereby creating the loss of billions of dollars as cannabis vape products disappear from store shelves. Direct-to-consumer orders will essentially become impossible to fulfill.
  • The legislation will cause extreme economic hardship to cannabis vape manufacturers, potentially driving hundreds of businesses to close nationwide, as well as denying consumers access to their favorite products. This will make product increasingly scarce and with limited options for retailers.
  • Finally, the act undermines the decisions made both by voters and in state legislatures across the country in the development of the legal cannabis industry in the United States.

The Stimulus Causes More Issues Than The Pandemic

Dana E. Shoched, president and CEO of 02VAPE, says: “In the legal cannabis markets across the country, the vaping component of our industry drives billions of dollars in revenue and creates thousands of jobs. By sliding into the back of the stimulus package a law change that misrepresents our vape customers as nicotine addicts and our technology as tobacco driven, it effectively destroys our ability to effectively serve them with the safe and responsibly produce equipment we develop. The “stimulus” in this case actually puts people’s livelihoods at risk and businesses like mine in an even greater struggle than the pandemic caused. And additionally, it will force consumers into a dangerous black market that should not exist.”

Additionally, she comments, “We have worked hard to get where we are by always putting the safety of our customers first. The thing I’m most concerned about is this law will choke the supply chain of equipment that many of my fellow veterans and other medicinal cannabis patients around the country use to take their medication.”


About O2Vape

O2Vape provides high-quality, portable cannabis vaping products for recreational and medicinal cannabis consumers. Founded in 2013, O2Vape offers consumers a lifetime warranty on all products, which include the patented Flip Ultra, Flip Platinum and the Original Flip professional, concealable, quick-click vape pen. Veteran owned and operated, O2Vape makes safety their highest priority in providing innovative vape pen technology. For more information, visit https://o2vape.com.

Dana E. Shoched Brief Bio

Dana E. Shoched is the president and chief executive officer of O2VAPE, a leading vaping product manufacturer for consumers and wholesalers. Creators of the patented Flip Ultra pen, O2VAPE is committed to providing leading-edge technology for recreational and medicinal cannabis consumers and patients. A veteran of the U.S. Navy, Shoched founded O2VAPE out of her garage in 2012 and has guided the company to phenomenal growth, and now serving customers in all 50 states and Puerto Rico. Prior to creating O2VAPE, Shoched held numerous roles in the pharmaceutical industry, healthcare and sales in the private sector.

Shoched is widely recognized as a pioneer for woman-owned businesses in the cannabis industry.

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