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"
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.
New York Attorney General Letitia James issued a consumer alert on May 18, 2026, warning businesses against engaging in price gouging on transportation services during the Long Island Rail Road strike. The alert reminds businesses that New York’s price gouging laws prohibit unconscionable price increases on essential goods and services during market disruptions, with potential penalties of up to $25,000 per violation. No specific enforcement action against a particular entity was announced, only a general warning for businesses and a call for consumers to report suspected price gouging.
New York Attorney General Letitia James issued a consumer alert on May 18, 2026, warning residents of potential price gouging by transportation service providers during the Long Island Rail Road strike. The alert reminds businesses that New York’s price gouging laws prohibit unconscionable price increases on essential services like transportation during market disruptions. No specific privacy violations or enforcement actions against individual entities were announced in the alert.
This press release announces New York Attorney General Letitia James leading a coalition of 21 state attorneys general, the District of Columbia, and Pennsylvania’s Governor in filing an amicus brief with the U.S. Supreme Court to stay a Fifth Circuit ruling that would reinstate in-person dispensing requirements for mifepristone, a medication used for abortion. The coalition argues the ruling is scientifically unsupported, would restrict telehealth access to reproductive care, and undermines state sovereignty over abortion policy post-Dobbs. This is not a privacy-related enforcement action, as the content addresses reproductive health policy rather than data privacy violations.
$5.0M
New York Attorney General Letitia James secured a $5 million settlement from cryptocurrency platform Uphold HQ, Inc. for promoting Cred’s fraudulent CredEarn investment product as safe and reliable, when Cred was making risky loans to uncreditworthy borrowers in China. Uphold also falsely claimed Cred had comprehensive insurance and promoted the product without registering as a broker or commodity broker-dealer under New York law. As part of the settlement, Uphold will pay $5 million to harmed investors, remit $545,189 from Cred’s bankruptcy to customers, improve due diligence policies for third-party products, and register as a broker with the OAG.
New York Attorney General Letitia James announced the conviction of tax preparer and insurance agent Miles Burton Marshall for operating a decades-long Ponzi scheme that defrauded 988 investors out of more than $50 million. Marshall pleaded guilty to Grand Larceny in the Second Degree, Securities Fraud under the Martin Act, and Scheme to Defraud in the First Degree, and faces four to 12 years in prison plus approximately $90 million in restitution to victims.