Meeting between Health Canada and the Canadian Vaping Association: March 12, 2025

Subject(s)

Illicit Market Update, enforcement and coordination issues, marketing updates and trends, CVA recycling project, and flavour requirements under Schedule 3 of the Tobacco and Vaping Products Act (TVPA).

Date

March 12, 2025

Participants

Health Canada

• Sonia Corrent (Chair), Director General, Tobacco Control Directorate, Controlled Substances and Cannabis Branch (CSCB)
• Denise MacGillivray, Director General, Cannabis, Tobacco and Controlled Substances Directorate (CTCSD), Regulatory Operations and Enforcement Branch (ROEB)
• Ericka Tulloch, Director, Tobacco and Vaping Controlled Substances Division, CTCSD, ROEB
• Manager, Compliance Division, Office of Compliance and Regulatory Affairs, TCD, CSCB
• Policy Analyst, Regulatory and International Policy, Office of Policy and Strategic Planning, TCD, CSCB (Secretariat)

Canadian Vaping Association (CVA)

• Samuel Tam, President
• Daniel David, Director
• Razin Alam, Director
• Christina Brink, Director
• Ramandeep Singh, BC Northern Health Unit Enforcement

Introduction

A meeting was held at the request of the Canadian Vaping Association (CVA) to discuss their Illicit Market Update; enforcement and coordination issues; marketing updates and trends; their recycling project; and flavour requirements under Schedule 3 of the Tobacco and Vaping Products Act (TVPA).

The Chair started the meeting with introductions.

The Chair read the transparency and disclosure statement. The Chair reminded participants that this meeting is subject to disclosure as per Health Canada's  Openness and Transparency policies. The handling of information and privacy notice was outlined and acknowledged. The Chair also referred to Article 5.3 of the World Health Organization Framework Convention on Tobacco Control (PDF format) (WHO FCTC), its international obligation to protect tobacco control policies from the vested interests of the tobacco industry. It was acknowledged by CVA participants.

Subjects

Illicit market update

The CVA provided their illicit market update, which found the following issues:

• Unrestricted declarations of puff count
• Nicotine levels above the legal limit of 20mg/mL
• False declarations on product labelling (volume and nicotine content)

The CVA expressed concerns that they are seeing repeat offenders; that products are being sold online from retailers outside of Canada that do not comply with the regulations; and that a lack of enforcement is allowing the illegal market to expand.

Regarding puff counts, the CVA stated that this can influence consumers as it represents greater value of the product. The organization finds that illegal products are displaying extreme puff count claims for competitive advantage. Additionally, these same products commonly violate nicotine limits and flavour names permitted under Schedule 3 of the TVPA.

The CVA has found that the increase in excise taxes on vaping products in 2024 has been a driver for the illegal market. The organization believes the tax rate is punitive and has become as high as those on cigarettes (rates vary by province/territory). The rapid implementation of new excise stamps has also made it difficult for the legal industry to comply. The CVA stated that high tax rates on vaping products have also caused some vaping retailers to close due to financial constraints.

Enforcement and coordination

The CVA expressed they would like to see greater collaboration between HC and Competition Bureau Canada to address some of the illegal market concerns presented (e.g. puff count as a performance claim, false declarations of volume and nicotine).

The CVA also flagged that enforcement timelines are challenging for legal producers and retailers (i.e. enforcement timelines are greater than the time for a product to be replaced by the next version due to demand and market forces).

Marketing update and trends and the CVA recycling initiative

The CVA stated that the Canadian vaping industry has been a leader in more environmentally sustainable products, and there has been a growth in sales of closed pod systems with detachable batteries (35% of vaping market sales compared to 20% one year prior). The CVA has observed that volume limits on vaping devices have been a cause of environmental waste, however, the closed pod system has helped to prevent this. Additionally, the CVA has started an initiative to reduce waste caused by disposable vaping devices.

Flavour requirements

The CVA expressed that retailers have received seizure notices for violations under Section 30.48(2), "Prohibition – sale" of flavours, of the TVPA. The organization feels there is some ambiguity with regards to acceptable flavour names under Schedule 3 of the TVPA.

The CVA would like to see seizures take place earlier in the supply chain in order to prevent products from making it to store shelves, and would like to see greater guidance from HC for the vaping industry regarding permitted flavour names.

In closing, the CVA expressed they would like to see offences and violations publicly shared online to inform consumers as well as retailers of repeat offenders and bad actors (including those who have sold to youth); greater information sharing between orders of government as well as government departments on enforcement issues; and greater and more rapid enforcement measures, including product testing (for volume, puff count).

Conclusion

The meeting was then concluded.

Documents

Agenda as provided by the CVA