ITCAN Withdraws from Prince Edward Island Due to Illegal Market

Main highlights:

Imperial Tobacco Canada (ITCAN) announced its withdrawal from Prince Edward Island due to widespread illicit markets and complicated tax policies.

ITCAN warns other provinces, such as Quebec, that they may face a similar crisis.

The ITCAN is calling on governments across Canada to crack down on the illegal e-cigarette market before it's too late.

According to a report from Newswire on February 27, Imperial Tobacco Canada Limited (ITCAN) announced that they will be withdrawing their e-cigarette products from the province of Prince Edward Island due to the ineffective implementation of regulatory measures leading to a proliferation of the black market.

The Vice President of ITCAN, Eric Gagnon, stated that the company is committed to creating a "smoke-free" world, and that legal e-cigarette products are an important alternative to reducing the harms of tobacco. However, the e-cigarette market on Prince Edward Island is currently controlled by illegal operators, and complex tax policies have further hindered legal businesses. This has led to ITCAN making the difficult decision to withdraw, with their e-cigarette products in the province set to be discontinued after March 1, 2025.

According to a report from Kanong, the lackluster enforcement in Prince Edward Island has fostered illegal trade, allowing unregulated products to easily enter the market, posing potential harm to young people in particular. The insufficient enforcement of regulatory measures has emboldened illicit operators, with fines only being a fraction of their operating costs.

Health Minister also issued a warning to the province of Quebec, stating that if immediate action is not taken, they will face a similar fate. Since the flavor ban on e-cigarettes in Quebec took effect in October 2023, there has been a significant influx of illegal products. The Health Minister questioned whether Quebec Premier François Legault wants to see a legal, regulated, and taxed market that only allows responsible companies to operate.

According to a survey conducted by Léger Marketing on behalf of ITCAN in October 2024, 61% of respondents have purchased flavored e-cigarettes, with 33% buying them online by circumventing sales bans.

In addition, a report from the Ministry of Health and Social Services (MSSS) shows that non-compliance is widespread, with only 38% (150 stores) of e-cigarette shops being inspected. Of the stores inspected, over 90% were found to be non-compliant, yet only 28 retailers were fined. Fines for first-time offenders are as low as $2,500 Australian dollars, while fines for repeat offenders are as low as $5,000 Australian dollars.

Cannon is calling on governments across Canada to crack down on the illegal e-cigarette market before it's too late.