LONDON, July 10 - Shopify has required merchants who use its e-commerce infrastructure to take vape products off their online storefronts, according to a company notice dated June 24 that Shopify later verified as authentic. The notice instructs merchants to remove all electronic cigarette products by July 8, warning that failure to comply could lead to product suspension or termination of the store.
The decision affects all types of vape products, with Shopify citing changes in legal restrictions on the sale of Electronic Nicotine Delivery Systems (ENDS) as the basis for its updated policy. The June 24 communication states explicitly that "Due to changes in legal restrictions on the sale of Electronic Nicotine Delivery Systems (ENDS), Shopify no longer supports the sale of these products." Shopify confirmed the notice was authentic but provided no further comment.
Earlier in June the company said it prohibits illegal activity and that enforcement choices are made on the basis of legal requirements across different jurisdictions. The recent step follows sustained pressure from a coalition of state and city law enforcement authorities in the United States, including attorneys general from California, Illinois and Arizona, as well as officials in the City of New York, the District of Columbia and Puerto Rico.
California Attorney General Rob Bonta, who led the coalition alongside the City of New York, said the policy change "will help significantly reduce the sale of illegal nicotine products. We will continue to hold companies accountable and protect public health." A spokesperson for Bonta also said the Shopify decision applies globally.
The same law enforcement coalition has urged policy changes at other firms as well, including payment network companies such as Mastercard. Shopify's directive to merchants sets a firm compliance timeline and outlines enforcement consequences for noncompliance, placing merchants that sell ENDS on the platform at risk of losing product listings or their entire store if they do not act by the stated deadline.
Summary
Shopify sent a June 24 notice asking merchants to remove all e-cigarette products from their Shopify-hosted sites by July 8, citing evolving legal restrictions on ENDS. The change follows pressure from a coalition of U.S. state and city law enforcement officials concerned about illegal online sales of vapes. Shopify verified the notice but did not add comment beyond confirming its authenticity.
Key points
- Shopify instructed merchants to remove all ENDS products by July 8 or face suspension or store termination - affecting e-commerce sellers on the platform.
- The policy change was prompted by pressure from a coalition of U.S. state and city law enforcement authorities, including several attorneys general and city officials - implicating regulatory and public health actors.
- The coalition has also pushed for changes at payment companies such as Mastercard, indicating broader implications for payment and commerce infrastructure.
Risks and uncertainties
- Merchants that continue to list ENDS products risk product suspension or termination of their Shopify stores - impacting e-commerce revenue streams.
- Enforcement depends on assessments of legal requirements across jurisdictions, creating uncertainty for cross-border merchants and marketplaces.
- The policy change may have broader effects on payment processors and other platforms if the coalition successfully pushes for similar restrictions elsewhere.