Small Businesses Challenge Indiana’s New Vape Legislation

Now known as the Enrolled Act, Indiana’s House Bill 1432 was officially signed into law on May 5th, 2015. The law issues guidelines for e-liquid manufacturing, ingredients and labels. Shortly after the the law was passed, several e-liquid companies filed federal complaints against the provision that vaping devices must be sealed and non-refillable, also known as “closed vaping system devices”. This provision makes it near impossible for e-liquid companies that create products for refillable or “open vaping system devices” to do business in Indiana. Currently, Big Tobacco companies such as Lorrilard and R.J. Reynolds are the major players when it comes to closed vaping system devices, so they argue that the law unfairly shuts out small businesses and gives others an unfair advantage.

The plaintiffs are asking the court to declare the law unconstitutional since it is making a distinction between two products (open and closed vaping system devices) that are essentially the same while giving Big Tobacco an unfair advantage. They also complain that the law unfairly classifies e-liquids as a tobacco products. There is no tobacco in e-liquids or vape devices.

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