Smoke shop owners across Louisiana are reeling from new regulations that ban the sale of almost all vaping products in the state. The law, known as Act 414, aims to curb teen vaping but has had unintended economic consequences for small business owners who rely on vape sales.
Vape Sales Slashed, Jobs Lost as Ban Takes Hold
Mohamad Nofel, owner of several Deja Vu Smoke Shops in Baton Rouge, spent a November afternoon removing vapes from his stores. A newly released state registry dictated which products he could legally sell under Act 414. Nofel covered his now-banned vape inventory with tarps.
“I turned away five or six customers today,” he said.
Louisiana smoke shop owners report vape sale revenue cuts between 50-60%. Some are considering closing or moving out of state.
“Our walls are empty. It’s affecting me to the point I’m thinking of actually moving out of Louisiana,” said 318 Cloudz owner Omar Dawud. His vape store chain may fold due to lost income.
The Louisiana Convenience and Vape Association filed an injunction against Act 414, arguing it threatens businesses. Their case remains open.
Advocates claim Act 414 protects youth from vapes’ health risks. Over 80% of teen e-cigarette users choose flavored options.
“It was designed to…keep [vapes] away from youth,” said Alcohol and Tobacco Control head Ernest Legier. However, ATC wants to balance public health and business interests.
Strict Product Registry Leaves Shelves Bare
Louisiana’s new V.A.P.E. product registry alarmed smoke shop owners. While lengthy at 397 items, it mostly excludes vapes they stock and customers demand.
Dawud sold 31 vape juice brands at his 318 Cloudz stores. Only two made the state registry.
“That’s almost $450,000 [lost]. A lot of money,” he said. Dawud blames Act 414 for a 60% sales dive and employee layoffs.
The registry includes some non-vape nicotine items. It also lists color and flavor variations of approved brands, belying its true narrowness.
While six disposable vape products made the cut, retailers say top sellers like Elf Bars aren’t listed. Customers shun the older, lower-quality models deemed legal.
The registry allows a handful of rechargeable vape brands like JUUL and Vuse. Critics note parent companies R.J Reynolds and Altria lobbied for Act 414, alleging anticompetitive aims.
“They want to tell you what to sell. It’s like a monopoly,” Nofel said.
Customers Left Confused, Upset by Vape Ban
Customers seeking to re-up their vape stash post-Act 414 instead find bare shelves. Some then take out frustrations on smoke shop employees.
“None of the [vapes] I normally use were left. It’s going to cause problems for me,” said vaper Orese Alford. He may switch to nicotine gum.
Alford expects smoking rates to climb absent accessible vape alternatives. Other customers grew upset at denied sales.
“I had a customer threaten to kill herself on camera if I didn’t sell her a vape,” said Fly High Smoke Shop worker Phill Oso. His employer faces steep income drops without vapes.
Some argue more tailored youth access regulations were possible instead of Act 414’s near-total ban. “I feel like there were other ways than to regulate to keep kids from getting them,” Oso said. “But Louisiana’s a drastic state.”
Court Challenge Questions Vape Tax Revenue Loss
Smoke shop owners sued to overturn Act 414, alleging it violates a state ban on amendments not “germane” to the original bill.
Act 414 began solely as a vape tax hike funding state police. The product registry added later guts revenue by banning legal vape sales, retailers argue.
“You can’t create the revenue volume you need for a dedicated tax with these products,” said attorney Tom Clark.
The Office of Alcohol and Tobacco Control disputes losing money, claiming far better enforcement under Act 414.
Previously, most vape purchases skipped taxes by tapping unregistered online sellers, wholesalers said. The registry now catches all legal, taxable sales.
“I suggest 10-20% of an unknown market is less than 100% of a known market,” said Director Legier.
The registry’s overall economic impact remains unclear as smoke shops decry lost sales. However, better regulations were needed to stem rising youth vaping rates, health advocates contend. For now, small vape retailers bear Act 414’s monetary brunt.
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