Attorney General James Leads Bipartisan Effort to Curb Sales of Illegal Vaping Products

AG James and Multistate Coalition Urge Major Credit Card Companies and Payment Processors to Help Stop Youth Vaping Crisis

New York Attorney General Letitia James today led a bipartisan coalition of 24 other attorneys general and the City of New York in urging major credit card companies and payment processors, including American Express, Capital One, Citi Group, Mastercard, Visa, PayPal, Stripe, Sezzle, and Block (operator of Square, Cash App, and Afterpay) to take stronger action to prevent their payment networks from being used to facilitate sales of illegal vaping products.  In letters sent to corporate leadership of each company, Attorney General James and the coalition called for immediate collaboration to block unlawful transactions that enable the widespread distribution of illegal vaping products, particularly to young people.

“Right now, vape sellers are using mainstream payment systems to sell products that shouldn’t be on the market in the first place to kids,” said Attorney General James.  “Our nation's children need to be protected from these addictive and dangerous products.  If you are helping process the payment, then you are part of the pipeline.  These companies have the power to shut this down, and they must act accordingly.”

Federal law requires that all e-cigarette products receive authorization from the U.S. Food and Drug Administration (FDA) before they can be legally marketed or sold in the United States.  To date, the FDA has authorized only 41 e-cigarette products, none in flavors other than tobacco or menthol, meaning the vast majority of vapor products sold are illegal.  Products that have not received FDA authorization are considered “adulterated” under federal law and cannot legally be sold or shipped in interstate commerce.  In addition, the federal Prevent All Cigarette Trafficking (PACT) Act imposes strict requirements on online sellers, including age verification, registration, and compliance with all applicable state and local laws.  Attorney General James and the coalition argue that many online retailers are failing to comply with these laws, as investigations show that most online sellers violate these requirements, including basic safeguards meant to prevent youth access.  Many of these sales are also illegal under state and local laws, including flavor bans in states like New York and prohibitions on direct-to-consumer shipping in several states.  Despite these restrictions, unauthorized e-cigarettes continue to be sold in vape shops or online and shipped directly to consumers, with transactions frequently processed through major payment networks.  States have taken enforcement actions against illegal businesses, including litigation and referrals to federal authorities for placement on the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Noncompliant List.  However, the coalition emphasizes that enforcement against vape sellers is not enough, and that payment processors play a critical role in stopping illegal sales at their source.

Attorney General James and the coalition are calling on the credit card companies and payment processors to take meaningful steps to prevent their services from being used to process illegal e-cigarette transactions.  Specifically, they are requesting a meeting to discuss solutions, including prohibiting merchants and payment processors that violate federal, state, and local laws from using their networks.  The coalition emphasizes that collaboration between government and the private sector has successfully reduced illegal tobacco sales in the past and is essential to addressing the current surge in unlawful vaping product distribution.  In 2005, New York led a similar bipartisan effort to work with credit card companies to reduce illegal sales of cigarettes online.  Attorney General James has been a national leader in efforts to combat illegal vaping sales and protect young people from nicotine addiction.  In February 2025, Attorney General James filed a landmark lawsuit against the nation’s largest vape distributors for fueling the youth vaping epidemic.  In January and October 2025, Attorney General James filed lawsuits to shut down two vape shops in Herkimer County and Otsego County for consistently violating public health laws and selling vapes to minors.  In April 2023, Attorney General James secured $462 million from Juul Manufacturers for its role in the youth vaping epidemic.  In August 2021, Attorney General James co-led a bipartisan coalition calling on the FDA to regulate e-cigarettes and oral nicotine products.  In December 2020, Attorney General James ordered dozens of retailers across the state to immediately stop selling e-cigarette products to underage customers and to stop selling flavored vaping products in violation of New York state law.

Joining Attorney General James in sending the letters are the attorneys general of Arizona, California, Connecticut, Delaware, Hawaii, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Tennessee, Vermont, Washington, Wisconsin, and Puerto Rico, as well as the City of New York.