The UK vape market has grown significantly in recent years. With around 2,900 specialist stores generating more than £1.2bn1 annually, it is Europe’s largest market2 and the second largest in the world, behind the US.3
However, while the market is booming, it does face challenges, particularly the sale of vape and e-cigarette products to underage customers and the associated growth of vaping amongst the under-18s. In fact, the problem has worsened in recent years. In 2022, 15.8% of 11-17 years olds (and almost a third of 16 and 17 year olds) said they have tried vaping, compared with 11.2% in 2021.4
What’s more, almost half (46.5%) of 11-17 year olds buy their vape products from shops, despite legislation banning their sale to under-18s.4 In line with those trends, Trading Standards has seen complaints about illegal vape sales rise from dozens each month in 2021 to hundreds each month this year – and has seized thousands of counterfeit and unregulated products.5
The rules around the sale of vapes in the UK are clear. They explicitly ban the sale of e-cigarettes or vapes to children, while every vaping product containing nicotine must be registered with the Medicines and Healthcare Products Regulatory Agency (MHRA).5
Set out in the Tobacco and Related Product Regulations of 2016, the rules also state that:
For shops caught out carrying out illegal vape sales – either unregulated products or under-age sales – there can be serious consequences.
In England and Wales, if a retailer is caught selling vape products to under-18s, both the retailer and the staff member are risking summary convictions and a fine of up to £2,500 while, in Scotland, further rules apply - including fines of up to £20,000 or even imprisonment for retailers selling vapes without registering to do so.6 Meanwhile, any retailer found to be selling unregulated or non-compliant products risks prosecution, stock seizure and fines of up to £5,000 per offence.7
Those consequences are likely to get more serious over time. Already the UK Vaping Industry Association is calling for tougher action on illegal sales, including the introduction of a licensing or approved retailer and distributor scheme and increased penalties of at least £10,000 per offence.8
Clearly, then, for any shop selling vape products, awareness of, and compliance with the law is crucially important – as ever in UK law, ignorance of the rules is not a legal defence.
So, to avoid fines and other penalties, it pays to know the rules, which include6:
More detailed guidance on how to legally sell vape products in the UK is available from the UKVIA – compliant products and under-age sales – and from the Association of Convenience Stores.
While vape shops face many of the same risks as any other retailer – from property to liability risks - there are also some specific risks associated with making or selling e-cigarettes and vape products that means you need insurance specifically tailored to your business. Risks include:
The good news is you can now buy affordable vape shop insurance designed to cover all your key business risks – from liability, stock and property to goods in transit and cyber-crime - in one easy package.
If you want to know more about the risks facing vape shops and how to defend against them, contact one of our local experts for confidential guidance, or read more about vape shop insurance.
Sources:
1 grocerytrader.co.uk/vape-booms-the-category-is-worth-well-over-1bn
2 thegrocer.co.uk/a-vape-a-day-vaping-and-e-cigarettes-category-report-2022
3 allencarr.com/easyway-stop-vaping/facts-statistics
4 businessrescueexpert.co.uk/will-vaping-stores-choke-on-new-laws-and-restrictions
6 acs.org.uk/acs_assured_advice_-_e-cigarettes_2022.pdf
7 ukvia.co.uk/UKVIA-If-in-doubt-check-it-out-information-updated-161221.pdf
8 ukvia.co.uk/ukvia-reinforces-call-for-get-tough-measures-to-stem-rising-numbers-of-children-vaping
We surveyed 2,000+ business leaders just like you to identify the key risks you're facing and created the UK Business Risk Report - full of practical insights to help you tackle them.