Health Canada and Vaping Industry Trade Association meeting: Illicit Market and Vaping Industry Compliance – October 5, 2022

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Subject:

Illicit Market and Vaping Industry Compliance

Date:

October 5, 2022

Participants:

Health Canada (HC)

• Sonia Johnson (Chair)
  • Director General, Tobacco Control Directorate (TCD), Controlled Substances and Cannabis Branch (CSCB)
• Laura Smith
  • Director, Office of Policy and Strategic Planning (OPSP), TCD, CSCB
• Neil Malik
  • Director, Office of Research and Surveillance, TCD, CSCB
• Sally Gibbs
  • Director, Tobacco, Vaping and Controlled Substances Division, Consumer Products and Controlled Substances Directorate (CPCSD), Regulatory, Operations and Enforcement Branch (ROEB)
• Manager, Tobacco Products Regulatory Office (TPRO), TCD
• Senior Manager, Tobacco, Vaping and Controlled Substances Division, CPCSD, ROEB
• Acting Manager, OPSP, TCD, CSCB
• Policy Analyst, TPRO, TCD, CSCB
• Regulatory Affairs Specialist, TPRO, TCD, CSCB
• Policy Analyst, OPSP, TCD, CSCB (Secretariat)

Vaping Industry Trade Association (VITA)

• Daniel David
  • President
• Meshaila Sinnis
  • Director of Regulatory Affairs
• Ali Aziz
  • Vice Chair & CEO

Introduction:

A meeting was held at the request of VITA to discuss the illicit market and vaping industry compliance concerns and efforts.

The Chair opened the meeting with round table introductions.

The Chair reminded participants that this meeting is subject to disclosure as per HC's Openness and Transparency policies. In the interest of transparency, the Department stated that it would be making a record of the meeting publicly available. The handling of information and privacy notice was mentioned and acknowledged.

HC also referred to Article 5.3 of the World Health Organization Framework Convention on Tobacco Control (WHO FCTC), its international obligation to protect tobacco control policies from the vested interests of the tobacco industry. It was acknowledged by VITA representatives.

Subjects:

Illicit market report & updates
VITA presented findings from an environmental scan of vaping retail locations regarding levels of compliance, illicit market activity, and the impact of enforcement efforts. VITA raised concerns that non-compliance and illicit market activity appeared to be worsening due to a number of factors including: easy access to low cost vape products, a high demand of non-compliant vape products, a minimal understanding of penalties, a perceived lack of enforcement, and a combination of low risk and high returns.

VITA also discussed retail strategies to circumvent enforcement, including the use of bold labeling, synthetic nicotine, fraudulent nicotine levels on labels, cash and carry to minimize documentation, and manufacturers taking advantage of less informed retailers.

Enforcement and compliance support
VITA discussed non-compliance and inspection results published by Health Canada, and outlined suggested actions that VITA and compliant companies could take to help address non-compliance. These actions included:

• notifying companies of non-compliance,
• reporting intentional retailer non-compliance and evidence of such,
• following up with Health Canada enforcement divisions on submitted reports,
• advocating for compliance and assisting businesses in reaching compliance goals,
• developing training programs on regulations, and
• understanding Health Canada expectations for reporting and providing evidence.

HC committed to providing instructions regarding compliance reporting.

VITA age verification retail training program
VITA presented on their retail training program for retail employees that sell vaping products, with an expected launch before the end of the year. HC committed to providing comments on certain aspects of the training program.

Vaping excise tax
VITA raised concerns regarding the vaping excise tax relating to the timeline, importation issues, and rollout issues, as well as the impact on illicit market activity.

Conclusion:

The meeting was then concluded.

Documents:

• Agenda as provided by VITA