The U.S. Postal Service (USPS) has barred New York-based distributor Demand Vape from using its business shipping services after receiving evidence that the company distributed unregulated e-cigarettes. This action, revealed in letters reviewed by Reuters, is a significant blow to the multi-billion dollar illicit vape industry and could benefit major tobacco companies like Altria and British American Tobacco.
The USPS revoked Demand Vape’s “mailing exception” for shipping vapes after the New York City Law Department provided proof of violations, including shipments of products lacking required U.S. Food and Drug Administration (FDA) authorization and those breaking a local flavor ban. Demand Vape, which sells to some 5,000 retailers, stated it complies with applicable laws and is contesting the decision.
Under a 2021 law, USPS is highly restricted from mailing vapes, with limited exceptions for compliant business-to-business shipments. The USPS has reportedly shared a list of other vape companies with mailing exceptions with NYC officials for further review, signaling a potential widening of the crackdown on the unauthorized vape market, which was estimated to be worth over $8 billion in 2023.
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