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Attorney General Tong Joins Bipartisan Effort to Curb Sales of Illegal Vaping Products

American Express, Capital One, Citi Group, Mastercard, Visa, PayPal, Stripe, Sezzle, Block (operator of Square, Cash App, and Afterpay)April 28, 2026Connecticut Attorney General

Summary

On April 28, 2026, Connecticut Attorney General William Tong joined a bipartisan coalition of 24 other attorneys general and New York City in sending letters to major credit card companies and payment processors urging them to block transactions facilitating sales of illegal vaping products. The coalition, led by New York, Pennsylvania, California, and NYC, called for collaboration to stop unlawful sales of unauthorized e-cigarettes that violate federal FDA premarket authorization requirements and the PACT Act. The letters request a meeting to discuss prohibiting noncompliant merchants from using the payment networks, citing past successful government-private sector collaboration in reducing illegal tobacco sales.

Contract Impact

In-house legal teams at payment processors should review merchant services agreements to include explicit requirements for compliance with the federal PACT Act, FDA premarket authorization requirements for e-cigarette products, and state laws prohibiting sales of unauthorized vaping products to minors. These agreements should include representations and warranties from merchants confirming their products are FDA-authorized, termination clauses for noncompliance with applicable laws, and audit rights allowing the payment processor to verify adherence to age verification and registration requirements. For merchants selling vaping products, their vendor agreements with suppliers should include clauses requiring suppliers to provide proof of FDA authorization for all e-cigarette products, and indemnification for any losses resulting from sales of unauthorized products. All relevant agreements should also include breach notification clauses requiring merchants to promptly disclose any regulatory actions or investigations related to illegal vaping sales.

Contract Search Terms

PACT Act complianceFDA e-cigarette authorizationage verificationvaping product salesunauthorized product salesyouth access preventionpayment network prohibited merchantsmerchant compliance audit

Laws Cited

Prevent All Cigarette Trafficking (PACT) Act

Violation Types

Entity Details

Entity

American Express, Capital One, Citi Group, Mastercard, Visa, PayPal, Stripe, Sezzle, Block (operator of Square, Cash App, and Afterpay)

Industry

Financial Services

Multistate Coalition

Official Sources

Source Evidence

Title
"Attorney General Tong Joins Bipartisan Effort to Curb Sales of Illegal Vaping Products"
Event Date
"04/28/2026"
Event Date
"Attorney General Tong today joined a bipartisan coalition"
Jurisdiction
"Office of the Attorney General William Tong"
Event Type
"bipartisan coalition of 24 other attorneys general and the City of New York"
Entity Name
"major credit card companies and payment processors, including American Express, Capital One, Citi Group, Mastercard, Visa, PayPal, Stripe, Sezzle, and Block (operator of Square, Cash App, and Afterpay)"

Related Enforcement Actions

NY

American Express, Capital One, Citi Group, Mastercard, Visa, PayPal, Stripe, Sezzle, Block (operator of Square, Cash App, and Afterpay)

New York Attorney General Letitia James led a bipartisan coalition of 24 state attorneys general, Puerto Rico, and New York City in sending letters to nine major credit card companies and payment processors urging them to block transactions facilitating illegal vaping product sales. The coalition cites federal and state laws prohibiting unauthorized e-cigarette sales, particularly to youth, and requests collaboration to prevent payment networks from processing such transactions. No enforcement penalties or actions were imposed as part of this initiative.

CT

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