Shopify to Ban All Vapes Following Pressure from U.S. State Attorneys General

Following pressure from 25 U.S. state attorneys general, e-commerce platform Shopify will ban all vape sales. The ban, which applies to both legal and illegal products in the U.S., is a major step in a crackdown on a $9 billion illegal vape market fueled by limited FDA authorizations. Separately, Mastercard has also warned partners against processing payments for unlicensed vape sales, signaling broader industry action.

Shopify vape ban

• ▪The Shopify ban in the U.S. will apply to all vapes, including those with and without the required FDA authorization
• ▪The ban could disrupt e-commerce sales and have a "chilling effect" on vape sellers, according to a source
• ▪Shopify will ban all vapes from its e-commerce platform starting as soon as the week of June 23, 2026
• ▪The geographic scope of Shopify's vape ban beyond the United States was not immediately clear
• ▪A Shopify spokesperson stated the company adjusts its enforcement approach when legal changes call for it

Illegal vape market

• ▪The illegal market for vapes in the U.S. is valued at approximately $9 billion, according to British American Tobacco
• ▪Unlicensed vapes, often manufactured in China, are widely sold in the U.S. despite being illegal to import or sell
• ▪E-commerce is a more significant sales channel for illegal vapes than for authorized vapes

State attorneys general pressure

• ▪In an April 2026 letter, the state attorneys general urged Mastercard and other payment processors to prevent illegal vape sales
• ▪The attorneys general have been pushing Shopify since 2025 to curb the online sale of illegal e-cigarettes
• ▪Shopify's decision follows pressure from a bipartisan coalition of 25 U.S. state attorneys general
• ▪The ban represents the most significant win to date for state law enforcement officials targeting the vape industry's infrastructure

FDA authorization landscape

• ▪The U.S. Food and Drug Administration has granted marketing authorization to only 45 e-cigarette products, most of which are tobacco-flavored
• ▪British American Tobacco argues the FDA's restrictive authorization approach has fueled the illegal vape market

Mastercard enforcement actions

• ▪Mastercard stated it has "zero tolerance for unlawful activity on our network."
• ▪Mastercard stated it would investigate stores selling illegal vapes on its network and could issue fines for non-compliance
• ▪In May 2026, Mastercard warned its partners that selling unlicensed vapes violates its network standards