Canadian e-commerce company Shopify (SHOP) says it will ban the sale of vape products from its platform due to pressure from a group of U.S. state attorneys general.
The American states are aiming to curb the sale of illegal e-cigarettes online and had singled out Shopify’s platform.
The Ottawa-based company provides the infrastructure that lets merchants operate and scale their online businesses and e-commerce sales channels.
Shopify said that It has been in talks with a coalition of 25 state attorneys general, who have pushed the company to clamp down on vapes that lack licences for U.S. sales.
Unlicensed vapes, usually made in China, are widely available in the U.S. both online and in vape shops, convenience stores, and at gas stations despite being illegal to import or sell.
The illegal U.S. market for vapes is currently estimated at $9 billion U.S., according to British American Tobacco (BATS).
It’s not clear if Shopify’s vape ban applies to jurisdictions beyond the U.S. Some countries, such as India, have banned vape sales entirely.
In the U.S., the Shopify ban will apply to all vapes and related products regardless of whether they have regulatory authorization or not.
SHOP stock has declined 31% this year to trade at $107.98 U.S. per share.
