Tobacco shop fined $100,000 for selling illegal e-cigarettes Daily Mail Online

2021-12-14 12:08:16 By : Mr. Cheng Lan

Olivia Day and Dita Smith contributed articles for The Daily Mail Australia

Published: November 21, 2021 at 22:25 EDT | Updated: November 21, 2021 at 22:25 EDT

A Sydney store was fined more than A$100,000 for allegedly selling illegal e-cigarettes containing high doses of nicotine. 

The Therapeutic Goods Administration (TGA) has imposed a fine of $106,650 on the company that owns the business, Mason Online Pty Ltd, and 8 notices of infringement for selling electronic cigarettes. 

Mason Online owns a shop called Shosha on Bourke Street in the inner east suburb of Darlinghurst. The shop also has an online shop selling e-cigarette pens, hookah pipes and smoking accessories. 

In December last year, Federal Minister of Health Greg Hunt announced that from October 1 this year, TGA will prohibit individuals from buying nicotine-based e-cigarettes.  

The nationwide revision of e-cigarette laws will criminalize the import of e-cigarettes, pods and liquids containing nicotine from overseas without a valid prescription. 

However, some corner shops are happy to risk fines by selling disposable e-cigarettes, which are becoming increasingly popular as an alternative to unhealthy and increasingly expensive cigarettes. 

In December, Federal Minister of Health Greg Hunt announced that TGA will make it illegal for individuals to purchase nicotine-based products from October 1 this year (stock image)

Mason Online owns a shop Shosha (pictured) on Bourke Street in Darlinghurst, which also has an online store selling e-cigarette pens, hookah pipes and smoking accessories

The TGA alleges that Shosha has been selling readily available and highly toxic pens to customers without a prescription. 

A TGA statement read: "Mason Online allegedly promoted the use and supply of nicotine e-cigarette products on its website, but failed to comply." 

"According to the Therapeutic Goods Act of 1989, e-cigarette products containing nicotine are prescription drugs and cannot be advertised to the Australian public."

According to TGA, the website has promoted more than 400 nicotine-based products, including e-cigarettes with flavors such as watermelon, guava, grape, and cherry. 

TGA stated that the website (pictured) has advertised more than 400 nicotine-based products, including e-cigarette pens with flavors such as watermelon, guava, grape, and cherry.

Tobacco stores across Australia sell addictive e-cigarettes for less than $20, and offer products in "discreetly packaged" (stock images)

"If you have been looking for the best e-cigarette store-then look at Shosha," read a statement on the website.

"We provide the widest variety of high-quality e-cigarette products at competitive prices."

The brand claims to sell products to New Zealand customers only online or through its 90 franchise stores, but currently the website can provide shipping to Australia. 

TGA alleges that the retail store was "deceptive" in removing references to products sold to Australian customers.  

'If the TGA requires a person to review their website and remove all non-compliant advertisements, it is not enough to redirect the website to an overseas domain or remove references to local physical stores from the website," the statement read.

"TGA reminds advertisers to heed recent warnings and not to engage in deceptive behavior."  

TGA claims that Shosha has promoted more than 400 nicotine-based products, including e-cigarettes with watermelon, guava, grape, and cherry flavors (stock images)

Earlier, some e-cigarette suppliers warned that they would ignore Australia’s ban on disposable devices made in China and sell them on the black market. 

The owner of one of Australia's largest e-cigarette stores claimed that the recent crackdown aimed at curbing nicotine e-cigarettes while allowing smokers to obtain products to help them quit smoking actually backfired and helped the black market "to flourish." 

Max Fichkin, who runs The Steamery in Sydney, said the new law will not prevent commercial suppliers from smuggling large quantities of goods into Australia.

He told Australia’s “Daily Mail”: “There has always been a black market. The more the government tries to suppress it through legislation, the more prosperous the black market will be.”

"Tobacco merchants, milk bars, and corner shops all sell them under the counter-and barely strengthened.

Max Fichkin (pictured), who runs The Steamery in Sydney, said that the new law on e-cigarette products will not prevent commercial suppliers from smuggling large quantities of goods into Australia

Before October, Australians were allowed to import nicotine e-cigarettes for up to three months-although it is illegal to own these products in most jurisdictions (stock image)

"If you search for keywords on Gumtree or Facebook Marketplace, there will be black market sellers delivering nicotine e-cigarette products to your home." 

Before October, Australians were allowed to import nicotine e-cigarettes for up to three months-although it is illegal to own these products once they arrive in most jurisdictions. 

Mr. Fichkin said that Chinese e-cigarette manufacturer HQD announced last year that they had successfully imported about 250,000 e-cigarettes into the country-despite the pre-existing laws prohibiting commercial quantities.  

He questioned the ability of Australian government agencies to deal with the large number of nicotine porters selling their products through busy ports.

He said: "TGA and ABF wanted to stop these shipments, but one company successfully delivered 250,000 single-use e-cigarettes within a month."

Those who sell e-cigarettes containing nicotine can now be fined up to $1,650 or six months in jail-or both (stock image)

"With an unprecedented number of imports entering the country, where do they get resources to block suppliers and demand prescriptions?" he said.

After increased penalties earlier this month, those caught selling e-cigarettes containing nicotine can now be fined up to $1,650 or six months in jail - or both.

Despite the risks, Mr. Fitchkin believes that black market sellers will not be deterred.

'The increase in fines is small. The profit far exceeds the cost. I haven't seen the daily income of selling disposable e-cigarettes at the corner store is less than $1,600," he said.

"This is a profitable area." 

Tobacco stores across Australia sell addictive e-cigarettes for less than US$20, and offer "discreetly packaged" products.

Teenagers can also buy e-cigarettes from distributors who buy their stock internationally and sell them to children on social media sites such as Instagram.

Most tobacco shops do not require customers to provide proof of age, although it is illegal to sell small amounts of nicotine in Australia (stock image)

Most tobacco shops do not require customers to provide proof of age, although it is illegal to sell small amounts of nicotine in Australia.

Sydney teenager Dakota Stephenson smoked e-cigarettes with friends at school for the first time. Seven months later, she developed a rare life-threatening lung disease.

The 15-year-old girl was diagnosed with hypoxia within a few hours-which means her lungs were not getting enough air-and spent three days of partial ventilation at Randwick Children’s Hospital, breathing difficulty. 

Her doctor concluded that she had a lung disease called EVALI, which was first reported in the United States in 2019. 

EVALI-stands for lung damage associated with the use of e-cigarettes or e-cigarette products-is believed to be caused by e-cigarettes containing tetrahydrocannabinol (THC), which is a spirit also present in cannabis Active substance, as well as the additive vitamin E acetate. 

Teenagers can also buy e-cigarette pens from distributors who buy their stock internationally and sell them to children on social media sites such as Instagram (stock image)

In Australia, prescription holders now only have two ways to obtain nicotine e-cigarette products; import them from pharmacies or from overseas websites (stock images)

Dakota's distressed mother, Natasha Stephenson, discovered that her daughter started smoking e-cigarettes when she was admitted to the hospital. 

In Australia, prescription holders now have only two ways to obtain nicotine e-cigarette products; import them from pharmacies or from overseas websites.

A prescription can only be issued by one of the 80 authorized prescribers or doctors approved under TGA's Special Visit Plan B.

The authorized prescriber of nicotine e-cigarette products must be a general practitioner registered with the Therapeutic Goods Administration.

Otherwise, a prescription can be obtained from one of more than 30,000 general practitioners and then ordered from overseas websites under the personal import plan. 

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