Combatting Illicit Markets Through Effective Enforcement
Along with fundamental reform of the pathways for authorized products to reach the market, we're advocating for the Food Drug and Administration (FDA), other federal agencies and the states to combat the illicit market through rigorous enforcement of existing laws.
Altria has led the industry for decades in advocating for strong enforcement tools to prevent the growth of illicit markets, including our active support for the federal Contraband Cigarette Trafficking Act and the Prevent All Cigarette Trafficking (PACT) Act, as well as for extensive licensing and other requirements that are now well-embedded at the state and local levels.
But, the regulatory system in the U.S. is being overwhelmed by foreign manufacturers flooding the U.S. with flagrantly illegal products lacking any FDA oversight. In response, in 2024 Altria:
- Undertook marketplace research confirming the scale and scope of the illicit vapor market and shared that research publicly.1
- Communicated extensively with the FDA and other federal agencies on the need for a comprehensive enforcement plan focused on using the agency’s most powerful enforcement tools against the marketplace actors most responsible for building the illicit market.2
- Engaged with Congress on the urgent need for effective enforcement of the Tobacco Control Act, including support for legislative solutions to improve enforcement.
- Supported the implementation of federal legislation enacted in 2022 that gave the FDA full authority over synthetic nicotine products, a phenomenon that emerged with the express intent to avoid FDA regulation.
- Advocated for closing other major loopholes in the regulatory system, including the lack of any registration requirement for foreign manufacturers.
- Supported enactment of state legislation requiring all vapor manufacturers to verify compliance with the Tobacco Control Act enabling states to publish directories of products for legal sale.
Did you Know?
Most U.S. adults 21+ surveyed are concerned about the illicit market eroding adult nicotine consumer 21+ trust in regulated alternatives.*
86% of health care providers
77% of smoke-free product only consumers
76% of general population adults
72% of cigarette only consumers
And expect the FDA to urgently replace the illicit market with a legal and regulated one that responsibly meets adult nicotine consumer 21+ demand.*
92% of smoke-free product only consumers
85% of health care providers
79% of cigarette only consumers
77% of general population adults
California’s Flavor Ban Leads to Large Illicit Market
Altria released a new study that found overwhelming evidence of a large, illicit marketplace of flavored e-vapor and menthol cigarette products in California following enactment of a 2022 ban on flavors in the state. The study affirms that prohibition-based policies do not work and lead to significant unintended consequences.
Letters to FDA
* Altria Client Services Tobacco Harm Reduction Engagement Survey – Findings are drawn from a nationwide survey conducted online among adults age 21+ including n=1,000 General Population (margin of error “m.o.e.” +/- 2.9%), n=438 Cigarette Only Consumers (m.o.e. +/- 4.6%), n=405 Smoke-Free Only Consumers (m.o.e. +/- 4.8%), and n=402 Health Care Providers (m.o.e. +/- 4.8%), from May 27 – June 22, 2025. The interview length averaged 17 minutes and the margins of error (m.o.e) for these samples are calculated at the 95% confidence level. The primary objective of this survey was to measure the attitudes and opinions of societal stakeholders nationwide on the public health strategy of tobacco harm reduction and the regulatory reforms needed to advance it.
1 California Empty Packs Survey, Q2 2023
2 Letter to the Center for Tobacco Products, Altria Client Services, April 5, 2024
3 See, e.g., Sabah Meddings, "The $22 Billion Vape Industry is About to Get Even Messier," Bloomberg, Feb. 3, 2025.