Zyn Halts Online Sales Amidst Regulatory Scrutiny (Business Insider)

Zyn Halts Online Sales Amidst Regulatory Scrutiny

Wednesday, June 19th, 2024 Legislation & Regulation Liability Life & Health Technology

Zyn, the popular nicotine pouch brand, has stopped online sales after receiving a subpoena from the District of Columbia’s attorney general regarding sales of flavored products. This follows DC’s ban on flavored tobacco products, including nicotine pouches, enacted in October 2022. Although online sales constitute a minor portion of Zyn’s overall sales, this halt could exacerbate existing shortages in stores.

Zyn’s parent company, Philip Morris International (PMI), stated that it is investigating the sales of flavored nicotine pouches in DC, which primarily occurred through online platforms and independent retailers. PMI plans to comply with the subpoena and has acknowledged the potential for significant liability.

In 2023, PMI shipped nearly 385 million cans of Zyn pouches in the U.S., marking a 62% increase from 2022. Despite the suspension of online sales, PMI expects to resume shipments soon.

Zyn has faced scrutiny over underage sales, with the FDA issuing numerous warning letters and civil complaints. Medical experts caution that nicotine, including in pouches, can be addictive and harmful to cardiovascular and respiratory health.

The suspension of online sales may worsen the current shortage of Zyn pouches, which are already in high demand. PMI is addressing supply chain issues and aims to resolve shortages by the end of the year.

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