A new report reveals vape shops’ deliberate non-compliance with regulations compared to the rest of the industry

MONTREAL, May 27, 2024 /CNW/ – Council of the Convenience Industry Canada (CICC) today unveiled its first compliance report for the convenience retail industry Quebec regarding the ban on the sale of flavored vaporizers. This report reveals the shocking and deliberate non-compliance of vape shops, whether converted to convenience stores or not, compared to other types of retailers, including major CICC member chains and independent stores.

Since the entry into force of the regulation prohibiting the sale of flavors October 31stCICC’s convenience store chains are strictly complying with this new directive. However, they experienced significant revenue losses, amounting to approximately 40% of vaping product sales. These alarming figures do not indicate a reduction in consumption, but rather a shift in demand to other channels.

To inform its members and relevant authorities, CICC conducted almost 400 store inspections over the past six months and analyzed internal data as well as public data from the Quebec Ministry of Health (MSSS). As a result of this exercise, the following levels of compliance were awarded by retail network category:

• Supermarkets and grocery stores: AND
• Convenience store chains: AND
• Independent convenience and tobacco stores: B
• Vape shops: F
• Overall Compatibility: D

CICC Vice President, Michel Gadboisexpressed his deep concern about the unsustainable and unfair market: “Since Minister Dubé’s blanket ban on flavors came into force, the market has been literally plundered by illegal vape shops. These stores are skirting the law, losing law-abiding sellers, and consumers no longer know where to turn. The situation is unacceptable and is on her side Quebec– he said.

Unfair competition from e-cigarette stores

CICC estimates and inspections show that of the 392 vape shops identified, 362 (92%) currently sell flavor enhancers, a practice that is completely contrary to the regulatory objective. This gives a dismal result overall ‘F’ rating for vape store chains, while major convenience store chains, supermarkets and grocery stores receive a rating ‘AND’.

For independent convenience stores, approximately 5-10% engage in non-compliant practices by selling illegal flavored vaping products. These violations can be attributed to a lack of awareness of stringent new regulations or a desire to liquidate unsold inventory, but this trend is expected to decrease.

According to Gadbois, responsibility and solutions lie entirely with the government. “It is imperative that Minister Dubé and his department take decisive action as soon as possible to restore commercial fairness between different retail chains, whether through strengthened enforcement measures or the adoption of new regulations,” he argued.

Earlier this year, CICC wrote to the Minister of Health asking for specific and measurable solutions to this problem, including the implementation of new regulations to ensure compliance of e-cigarette shops.

CICC report titled Compliance report card regarding the ban on the sale of vaping flavors in Quebec is available by clicking the link below: CCIC’s Taste of Quebec Report

About CICC

Convenience Industry Council Canada (CICC) is a nationwide non-profit council associating the largest chains of convenience stores in the country. It represents their interests at all levels of government, provides data and research to make informed business decisions, hosts networking and development events, and protects the industry’s reputation. The convenience store industry employs 193,056 Canadians (including 51,138 Quebecers), generates $53.7 billion per year (incl $14.2 billion IN Quebec) for goods and services and contributes annually $25.6 billion in nationwide taxes (including $6.7 billion IN Quebec).

SOURCE Convenience Industry Council Canada (CICC)

Further information: Contact: Michel Gadbois, Vice President, Convenience Industry Council of Canada (CICC), Cell: (514) 946-1522, Email: (email protected)