According to a report by Bloomberg on November 6, investor marketing agency Casson Communications published an article criticizing the joint efforts of the U.S. Food and Drug Administration (FDA), the U.S. International Trade Commission (ITC), Reynolds Tobacco, and Altrich to stop Commends the importation, marketing, and sale of illegal disposable vaping products into the U.S. market. The article pointed out that this cooperation may have a positive impact on "compliance companies".
Comments in the article stated: “The simple fact is that stopping the influx of these illegal products is good for business.”
The authors believe that illegal e-cigarettes and related products have eroded the market share, pricing power and revenue of compliant manufacturers, distributors and retailers. The sale of these illegal products goes unreported, resulting in significant drops in sales tax revenue for states, counties and cities.
The article further mentioned: “Although it is difficult for us to predict that all illegal e-cigarette products will completely disappear from the U.S. market, I believe that the actions of government agencies and large companies will become more powerful.”
The authors of the article stated that compliance companies of all sizes support these joint efforts, especially those small manufacturers and distributors who produce FDA-authorized products, who will receive significant benefits from these comprehensive initiatives, and they "may benefit relatively We’ve seen significant growth in sales and earnings in a short period of time.”
The positive impact of this cooperation will help maintain compliant markets and combat the flow of illegal products, thereby promoting legal operations and increasing revenue.
