MO · 10-Q · 2026Q2 · Full report

Illicit E-Vapor Enforcement

ALTRIA GROUP, INC. · 2026-07-30 · Importance 37 · Surprise 42 · In source text

Illicit flavored disposable e-vapor products continued to proliferate despite FDA and U.S. Customs and Border Protection actions, including import restrictions, product seizures, and warning letters. Altria said insufficient enforcement against products requiring FDA review but lacking submitted premarket tobacco product applications allowed unauthorized products to remain in the market. The company expects effective enforcement against illicit products to occur more gradually than initially anticipated and is monitoring competitive threats across nicotine categories. These products create competitive pressure for FDA-authorized brands, including NJOY, and may affect conversion of illicit e-vapor consumers to authorized products.

Key facts

• Altria expects that effective enforcement against illicit products will occur more gradually than initially expected. source
• The FDA and U.S. Customs and Border Protection have seized unauthorized e-vapor products, made it more difficult to import properly declared illicit e-vapor products and issued warning letters to importers. source
• Altria settled a lawsuit in October 2025 in federal court in California against manufacturers, distributors and retailers of illicit e-vapor products; under the settlement a foreign manufacturer and certain domestic distributors are prohibited from selling or shipping flavored e-vapor products to consumers, retailers, wholesalers or distributors located in the State of California. source
• In June 2024 the U.S. DOJ and FDA announced creation of a federal multi-agency task force to combat illegal marketing and sale of e-vapor products in the United States. source
• The growth of the e-vapor category, including illicit disposable e-vapor products, is identified by Altria as a factor that contributes to reductions in domestic cigarette consumption levels and shipment volume. source
• Altria identifies the impact of illicit trade in nicotine products and the sale of products designed to avoid the regulatory framework for nicotine products as factors that contribute to reductions in consumption levels and shipment volumes of its operating companies’ products. source
• Altria does not believe the DOJ/FDA task force efforts have had a significant impact on the volume of products on the market that required FDA review for which no PMTA has been submitted. source

Impact estimates