Vaping products received a lot of attention from cannabis companies to regulators like the FDA. Traditionally, vaping products have been closely linked to tobacco users. Vaping is an alternative to tobacco smoking. According to promotions, vape smoke isn’t as harmful as cigarette smoke. Cannabis companies showed interest in the vaping industry. There’s a large potential for vaping products in the US, according to Aphria (APHA). While the vaping industry is gaining popularity, companies must tread with caution.
FDA raids vape products
Last week, the FDA asked four companies to remove 44 products. The products didn’t receive the necessary marketing authorization. Lately, the FDA has taken strict action against any violation related to e-cigarette or vaping products. In a news release, the FDA stated that the actions were part of its “aggressive effort to investigate and take action against illegally marketed tobacco products amid the epidemic of youth e-cigarette use in America.”
Vaping and tobacco products’ rampant marketing could impact kids, which concerned the FDA. Serious issues arise when young people have access to tobacco and cannabis products. On August 2, eight teens in Wisconsin went to the hospital due to shortness of breath. Their medical issues were due to vaping.
Caution for cannabis companies
Unfortunately, other companies also face heightened scrutiny, which could delay some of their products. Companies with violations will face huge penalties. Also, the companies might get suspended from participating in future opportunities.
The violations should also concern cannabis companies. On August 9, Canopy Growth (WEED) (CGC) announced its entry into the US vaping market in a partnership with Greenlane Holdings. Notably, cannabis companies will face significant regulatory pressure. The companies will face higher business costs and a negative impact on returns. The Horizons Marijuana Life Sciences ETF (HMMJ) has fallen almost 80% from its peak of 23.7 Canadian dollars on March 19 this year to 16.9 Canadian dollars as of August 9.
Not the first time
In the past, the FDA has been wary of illegally marketing e-cigarette products. Earlier last month, Curaleaf (CURLF) came under fire for falsely marketing its CBD products. As a result, the company had to stop promoting its products and saying where they were available. To learn more, read Curaleaf Stock: Latest Updates for Investors.