Philip Morris Fined $1.2M For Breaching DC’s Tobacco Ban

KEY HIGHLIGHTS:

• Philip Morris was facing a $1.2 million penalty for violating DC’s tobacco ban
• Despite the ban in effect from October 1, 2022, SMNA did not stop selling its nicotine pouches
• Nicotine pouches are the second most used tobacco product in the US

Swedish Match North America (SMNA), a subsidiary of tobacco giant Philip Morris International Inc., was ordered to pay $1.2 million for allegedly violating Washington DC’s flavored tobacco ban.

The Attorney General’s office of the District of Columbia said it had found evidence that SMNA continued to sell “tens of thousands” of flavored Zyn nicotine pouches to DC residents between periods October 1, 2022 and June 30, 2024, despite the ban being in effect that time.

Philip Morris, which acquired a 90-percent stake in SMNA for $16 billion, had already suspended selling the products on the website Zyn.com earlier this year following a subpoena from the DC’s attorney general.

However, it was still advised to quarterly monitor its distributor’s compliance with DC’s ban and stop sales of flavored Zyn pouches through its own website and other e-commerce platforms.

‘Second most used tobacco product’

According to the Centers for Disease Control and Prevention, nicotine pouches are currently the second most commonly used tobacco product in the United States. This year alone, as much as 890,000 students were reportedly consumers of nicotine pouches.

Meanwhile, e-cigarettes remained the most commonly used tobacco product.

Sales of Zyn, which according to Philip Morris does not contain tobacco, have surged by 41.1 percent.

The company, which has been looking to move beyond traditional cigarettes, has also expanded production to counter Zyn supply shortages in the US amid a budding black market for nicotine pouches.

‘Towards a smoke-free journey’

Philip Morris acquired SMNA in 2022. According to the tobacco giant, Philip Morris and SMNA share a mutual vision of a smoke-free world, and a firm commitment to developing, scientifically substantiating, and responsibly commercializing smoke-free products that are a better alternative to cigarettes.

SMNA’s product, Zyn, was expected to bolster Philip Morris’ growing smoke-free portfolio of heated tobacco products, e-vapor devices, and oral nicotine products.

“This will put us in a significantly stronger position to meet the diverse range of taste, usage, technology, and price preferences among those adult smokers who would otherwise continue to smoke,” Philip Morris was quoted as saying in a statement on its website.