The UK vape market has grown significantly in recent years. With around 2,900 specialist stores generating over £1.2bn1 annually, the UK has largest market in Europe2 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 these trends, Trading Standards has reported a rise in complaints about illegal vape sales. These complaints have increased from dozens each month in 2021 to hundreds each month this year. They have also 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. Additionally, 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:
Shops caught conducting illegal vape sales, whether involving unregulated products or under-age sales, can face serious consequences.
In England and Wales, if a retailer is caught selling vape products to under-18s, both the retailer and the staff member risk summary convictions and fines of up to £2,500. In Scotland, additional rules apply. Including fines of up to £20,000 or even imprisonment for retailers selling vapes without proper registration.6
Meanwhile, any retailer found to be selling unregulated or non-compliant products risks:
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 legally selling vape products in the UK is available from the UKVIA, covering compliant products and under-age sales. Additonal information can also be found from the Association of Convenience Stores.
Vape shops face many of the same risks as other retailers, such as property and liability risks. But there are specific risks associated with making or selling e-cigarettes and vape products. This means you need insurance specifically tailored to your business. Risks include:
If a product you have supplied or manufactured is unsafe and causes personal injury or death to any person, or damage to private property, you could be sued for compensation.
Vape shops are becoming increasingly attractive to thieves, posing a risk to stock, on-site equipment, and cash, whether through physical theft or cyber-crime.
As we have seen, the growing issue of non-compliant products and under-age sales is leading to more regulatory investigations.
The good news is that you can now purchase affordable vape shop insurance designed to cover all your key business risks. This includes liability, stock, property, goods in transit, and cyber-crime, all 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
5. bbc.co.uk/health-62052286
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
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