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.
In-house legal teams at payment processors, credit card companies, and merchants selling age-restricted products should review their merchant services agreements, terms of service, and vendor contracts to include explicit clauses requiring compliance with all applicable federal and state laws, including the Prevent All Cigarette Trafficking (PACT) Act and FDA e-cigarette marketing rules. Clauses related to prohibited products, age verification obligations, and termination rights for non-compliance should be updated to allow payment networks to block transactions for illegal goods. Merchant agreements should also require regular compliance certifications and audit rights to verify adherence to youth access prevention laws.
Entity
American Express, Capital One, Citi Group, Mastercard, Visa, PayPal, Stripe, Sezzle, Block (operator of Square, Cash App, and Afterpay)
Industry
Financial ServicesOfficial Press Release
https://ag.ny.gov/press-release/2026/attorney-general-james-leads-bipartisan-effort-curb-sales-illegal-vaping
letter to american express company on illegal e cigarette sa
https://ag.ny.gov/sites/default/files/letters/letter-to-american-express-company-on-illegal-e-cigarette-sales-transactions-letters-2026.pdf
letter to capitol one financial corp on illegal e cigarette
https://ag.ny.gov/sites/default/files/letters/letter-to-capitol-one-financial-corp-on-illegal-e-cigarette-sales-transactions-letters-2026.pdf
letter to citigroup inc on illegal e cigarette sales transac
https://ag.ny.gov/sites/default/files/letters/letter-to-citigroup-inc-on-illegal-e-cigarette-sales-transactions-letters-2026.pdf
letter to mastercard inc on illegal e cigarette sales transa
https://ag.ny.gov/sites/default/files/letters/letter-to-mastercard-inc-on-illegal-e-cigarette-sales-transactions-letters-2026.pdf
letter to visa inc on illegal e cigarette sales transactions
https://ag.ny.gov/sites/default/files/letters/letter-to-visa-inc-on-illegal-e-cigarette-sales-transactions-letters-2026.pdf
letter to paypal holdings inc on illegal e cigarette sales t
https://ag.ny.gov/sites/default/files/letters/letter-to-paypal-holdings-inc-on-illegal-e-cigarette-sales-transactions-letters-2026.pdf
letter to stripe inc on illegal e cigarette sales transactio
https://ag.ny.gov/sites/default/files/letters/letter-to-stripe-inc-on-illegal-e-cigarette-sales-transactions-letters-2026.pdf
letter to sezzle inc on illegal e cigarette sales transactio
https://ag.ny.gov/sites/default/files/letters/letter-to-sezzle-inc-on-illegal-e-cigarette-sales-transactions-letters-2026.pdf
letter to block inc on illegal e cigarette sales transaction
https://ag.ny.gov/sites/default/files/letters/letter-to-block-inc-on-illegal-e-cigarette-sales-transactions-letters-2026.pdf
New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"urging 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)"
"Federal law requires that all e-cigarette products receive authorization from the U.S. Food and Drug Administration (FDA) before they can be legally marketed or sold in the United States."
"the federal Prevent All Cigarette Trafficking (PACT) Act imposes strict requirements on online sellers, including age verification, registration, and compliance with all applicable state and local laws."
"many of these sales are also illegal under state and local laws, including flavor bans in states like New York and prohibitions on direct-to-consumer shipping in several states."
"bipartisan coalition of 24 other attorneys general and the City of New York"
"Attorney General James and Multistate Coalition Urge Major Credit Card Companies and Payment Processors to Help Stop Youth Vaping Crisis"
$5.0M
New York Attorney General Letitia James secured a settlement with cryptocurrency platform Uphold HQ, Inc. for misleading investors by promoting Cred’s fraudulent CredEarn investment product as a safe, reliable savings option when it involved risky loans to uncreditworthy borrowers. Uphold will pay $5 million to harmed investors, redirect $545,189 in Cred bankruptcy proceeds to affected customers, and implement enhanced due diligence policies for third-party investment products. Uphold must also register as a broker with the Office of the Attorney General.
New York Attorney General Letitia James and Tennessee Attorney General Jonathan Skrmetti, leading a coalition of 40 state attorneys general, secured a jury verdict on April 15, 2026, against Live Nation and Ticketmaster for maintaining illegal monopolies in the live events industry. The jury found the companies engaged in anticompetitive practices including exclusive venue contracts, forcing competitors out of the market, and limiting artist performance choices, resulting in overcharged consumers. Remedies, including potential financial penalties and a monopoly breakup, are pending court approval.
New York Attorney General Letitia James, joined by 16 other states, sued the U.S. Department of Education over a new survey requiring colleges to submit extensive student data, arguing it violates the Administrative Procedure Act and threatens student privacy. The lawsuit seeks to block the mandate and prevent penalties for non-compliance.
A bipartisan coalition of 35 state attorneys general led by New York Attorney General Letitia James sent a demand letter to xAI on January 26, 2026, requiring the company to address its Grok chatbot’s creation and sharing of nonconsensual intimate images, including child sexual abuse material. The AGs demand that xAI implement safeguards to prevent Grok from generating such content, delete existing harmful content, suspend offending users, and give X users control over whether their content can be edited by Grok. No monetary penalty has been imposed as this is a pre-enforcement demand for action.
New York Attorney General Letitia James sent a letter to Instacart demanding information about its use of algorithmic pricing, after a study found users were charged up to 23% more for identical products. The AG warned that Instacart’s pricing disclosures are non-compliant with New York’s Algorithmic Pricing Disclosure Act, which requires prominent notices near product prices when personal data is used to set prices. Instacart must provide details on its pricing experiments, automated tools, and compliance efforts with the state’s disclosure requirements.
$500K
New York Attorney General Letitia James secured a $500,000 settlement with orthopedics practice OrthopedicsNY, LLP for failing to implement adequate data security measures, leading to a 2023 cyberattack that exposed personal and health information of approximately 656,000 patients and employees. The settlement requires OrthopedicsNY to pay the penalty, fund one year of free credit monitoring for affected individuals, and adopt enhanced data security practices including multifactor authentication, encryption, and annual risk assessments.