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 enhanced, coordinated, and sustained efforts and 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. continues to be overwhelmed by foreign manufacturers flooding the U.S. with flagrantly illegal products lacking any FDA oversight. In response, in 2025 Altria:
- Communicated extensively with the FDA, U.S. Customs and Border Protection (CBP), and other members of the federal multi-agency ENDS Enforcement Task Force 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.1
- Engaged with Congress on the urgent need for effective enforcement of the Tobacco Control Act, including support for legislative solutions to improve enforcement.
- Advocated for closing other major loopholes in the regulatory system, including the lack of any registration requirement for foreign manufacturers and methods of evading import review, and advocated for FDA to regulate nicotine analog products.
- Supported enactment of state legislation requiring all e-vapor manufacturers to verify compliance with the Tobacco Control Act enabling states to publish directories of products for legal sale, and numerous states have enacted laws along these lines. Five states enacted legislation to address this issue in 2025, bringing the total number to seventeen.2
- Successfully concluded litigation in California by NJOY that was brought against Chinese manufacturers and domestic distributors of illicit e-vapor products. Under the terms of the settlement, the manufacturers and distributors will cease sale of flavored disposable products in California and update their website and trade agreements to clearly indicate this prohibition.3
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
Momentum towards effective enforcement accelerated significantly in 2025. Among other things, the Department of Justice (DOJ) and FDA coordinated raids and seizures of illicit e-vapor products nationwide. In September 2025, FDA and CBP conducted the largest seizure to date — over four million misdeclared e-vapor products — and continued to increase their focus on illicit e-vapor products.
The Drug Enforcement Agency (DEA) performed “Operation Vape Trail” targeting illegal substances in vape shops nationwide, with an uptick of illicit e-vapor product seizures; Congress held multiple hearings focused on the urgent need for enforcement and enacted legislation, which we strongly supported, requiring the FDA’s Center for Tobacco Products to allocate $200 million annually to enforcement activities and to support the DOJ-FDA multi-agency task force. And multiple states either enacted enforcement-focused legislation or undertook major enforcement actions against illicit market actors.4
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.
2 ALCS Government Affairs Legislative Tracking
3 https://tobaccoreporter.com/2025/10/14/altria-drops-suit-as-elf-bar-exits-california-market/
4 See, e.g., Sabah Meddings, “The $22 Billion Vape Industry is About to Get Even Messier,” Bloomberg, Feb. 3, 2025, https://www.bloomberg.com/news/features/2025-02-03/unauthorized-flavored-vapes-dominate-e-cigarette-use.