Development of E-Cigarettes and Vaping Regulations

Table of Contents

Why do we need Economic policies? Why in every aspect, government needs to intervene in the market to have regulation?

Evolution of E-Cigarettes

Why there is a need to have regulations?

Downsides of e-cigarettes

Legislation

How is the Industry Regulated?

Cost and benefit Regulation

Costs

Benefits

Losers and winners from regulation

Other regulatory reforms

Industry association and its role

One-for-One rule

Regulatory Cooperation and alignment

Conclusion

Appendix

References

Why do we need Economic policies? Why in every aspect, government needs to intervene in the market to have regulation?

Canada faces serious issues of health, social security, and strengthening of Canadian economy in terms of investments, innovation and trade (J, 1994). Economic policies act a steppingstone for the economy growth and social welfare. Economies need to be developed with rapid evolution in technology, integrated market, and highly dynamic economies (J, 1994). This will foster the economic growth ultimately (J, 1994). But, when we talk about social security, what does this incorporate? Does this mean it’s hazardous to go outside during certain hours of the day? It is because there is more easy access to drugs that create violence in the community. With the globalization and increased competition, the scope for jobs and capital widens (J, 1994). There is need to take an opportunity, for self-improvement and growth and boost the economy. People are making their societies better and government is making its best efforts to provide facilities to people in the community. Some concern from masses is required. People including the teens are taking drugs in higher quantity. They’re educated, then why do they choose wrong paths in building their career. One of the drugs are e-cigarettes. It seems like a trend, that people smoke Vape for the status especially, the high school children. Government legalised Marijuana, what was the huge need of legalising it. Government has other sources as well to earn revenue. There has been increased health risk factors associated with these aids. With Vaping, though it is better than combustible smoking, but it still has some harmful effects. This overall reduces the efficiency and effectiveness of working. Capital Assets are being used up for the feeling that does not prompt production efficiency (J, 1994).

Figure 1: Courtesy of Editorial Cartoon of Ottawa Citizen

Being considered good, then why does government need to make regulations? Are those regulations strictly enforced to avoid people’s usage of e-cigarettes? Then why has the government in Canada has legalize Cannabis.  In comparison to Canada, why U.S.A has legal age of 21 to drink. As per the recent study, San Francisco is making vaping ban (L, 2019). There always has been treaty signed between Unites States and Canada, then why is Canada not stopping people to vape. People like me, who doesn’t even drink or smoke, suffer a lot. There is massive population of people who falls into the category where they are more concentrated on remaining healthy. Release of toxic substances from not only electronic devices, but cigarettes, vape, Hookah, is also harmful to the environment. It is the government need to understand the market situation and deal with such circumstances. 

Evolution of E-Cigarettes

E-cigarettes devices available in the market have evolved since they were first introduced d in the early 2000s (A Historical Timeline of Electronic Cigarettes, 2019). Over the years ago, e-cigarettes have evolved from simple devices that closely resembles traditional cigarettes to more complex devices with enhanced features. Attempts were made to enhance the performance and nicotine content and variability in term of the efficiency of vaporization (A Historical Timeline of Electronic Cigarettes, 2019) (A Historical Timeline of Electronic Cigarettes, 2019). At that time in US, youth accounted for the major proportion in market share with the increase in popularity (National Institute on Drug Abuse, 2016). Many other companies begin buying smaller manufacturers and wide variety of promotional techniques were used (National Institute on Drug Abuse, 2016). With this transformation, the market expanded to Canada with the emergence of new products of nicotine (E-Cigarettes in Canada, 2018).

Vaping is defined as the act of inhaling and exhaling an aerosol produced by a vaping product, such as electronic cigarette (E-Cigarettes in Canada, 2018). These electronic devices contain special substance called Nicotine, which increases the airborne concentration of particles (E-Cigarettes in Canada, 2018). These vaping devices use electrical power from a battery to heat a liquid solution (Government of Canada , 2019). Government is trying to reduce the number of people smoking. There are increased number of youth and young adults smoking these days. This is the reason people are more influenced by e-cigarettes use and subsequent smoking initiation (Beebbaum, Olaman, H, B, & N.d., 2018) Yes, it is considered e-cigarettes are better than combustible cigarettes as these produce chemicals at less level, do not contain tobacco, do not involve burning of smoke (Beebbaum, Olaman, H, B, & N.d., 2018). However, e-cigarettes contain toxicity like formaldehyde, acrolein etc (Beebbaum, Olaman, H, B, & N.d., 2018).

Figure 2: The different types of E-cigs during the course of history

Why there is a need to have regulations?

Use of such substances can be harmful to the people as they might take wrong advantage of it. Especially youth take the maximum advantage of these devices and release their stress but in the long run they’re affecting their mental health. Every person in the country pay taxes, the questions arises, why government thinks the revenue can only be earned through by promoting such devices, which affect the growth of the economy. Flavours are available in Vape, why not available in traditional smoking. Well, it can be good substitute of the person who wants to quit smoking, but according to me this does not restrict the person to stop smoking but influence to use other ways of smoking that can ultimately affect the mental and physical health of an individual.

Not only restrictions to those under 18, but in February The Tobacco and Vaping Products Act also aim to minimize the visibility of vaping ads to young people (Zafar, 2019). According to the health minister, Various measure were introduced such as restriction on advertising of vaping, a public education campaign to be organised, and limiting the display of vaping products in retail location (Zafar, 2019). The issue of excessive vaping was also addressed by Canadian cancer society (Zafar, 2019). According to the society, study will be undertaken examining the flavours, nicotine concentration, and design of the products. The current scenarios imply the control for regulation is under provincial which is further moving to Federal Government. With the government effect, the government begin to make ads while using social media to know the side effects of vaping (Zafar, 2019). The major impact is on the brain development and lung damage at small age (Zafar, 2019).

Figure 3: Display for vape products at a local store.

From the recent study that was based on high school children, the conclusion drawn were surprising. It was observed that there exists a relationship between those who were moderate and daily e-cigarettes users (Kathleen Case, B, Lazard, & Mackert, 2016). The major proportion of this was from the retail stores among adolescents (Kathleen Case, B, Lazard, & Mackert, 2016). The moderate users were girls as compared to boys who almost smoked 3-5 day per week (Kathleen Case, B, Lazard, & Mackert, 2016). The sudden change in their behaviours was also noticed by their parents. This wasn’t hard for masses to obtain these devices online as well. Being easily accessible from retails stores, youth laws were implemented. Although adolescents’ e-cigarettes use has been recognised as a public health concern, reduction is unlikely without adequate public health policy and enforcement (Kathleen Case, B, Lazard, & Mackert, 2016).

Downsides of e-cigarettes

The nicotine present in vapes, leads to insulin resistance and type 2 diabetes. Nicotine, that is inhaled increases heart rate and blood pressure (E-Cigarettes in Canada, 2018). Not only this, one gets addicted to another types of drugs as well (Government of Canada , 2019). The liquid present in is also hazardous for household. The liquid can cause lung disease called bronchiolitis, causing permanent damage to the Bronchioles (E-Cigarettes in Canada, 2018). Hence, these are facts that one should take care of if someone does not smoke. For teenagers, it leads to brain impairment. 

Figure 5: Image showing a person holding epen and smoke.

  Even after strict regulations, it is impossible to stop drink and driving. Number of accidents increased when people drink when they are drunk. It become the role of Police to look after people late night if driving recklessly. This is the first step to stop people from acidents. Even that is the reason ICBC has strict regulario for getting a locense so that people are aware of the rules. Nowadays, people smoke traditional cigarttes in their car, which does not only affect others in the car and their own health, but also makes one feel uncomfortable after certain period to drive making them lethargy. Promoting e-cigarettes will encourage people to use in their cars as well. Though it acts as a stimulant that boost the central nervois system, arousal for activity, and boosts energy, but in the long term, affects overall population. It will get hard to stop people from smoking no matter what kind it is.

Legislation

Bill S-5 establishes a new legislative framework for regulating vaping products in Canada (Government of Canada , 2017). These products can be classified into two broad categories i.e. recreation use or therapeutic purpose. The market was regulated by TVPA that regulates manufacturing, sales, labelling and promotion of products (Government of Canada , 2017). Still the question remains outstanding, what is the purpose of using e-cigarettes? Can something be produced by not using nicotine which still interests people. will the results be effective, if government uses such substances that are not harmful to the environment and not affecting people?

Figure 6 Cartoon Credits: Editorial cartoon by Malcolm Mayes

There have not been specific regulatory policies or laws in the past for electronic cigarettes as known e-cigarettes. E-cigarettes should be the way that do not make health claims. Though they’re safer in terms that they do not burn and are smokeless. The government main intention is to stop people smoking. Similarly, e-cigarettes will not help achieve government this goal by switching their use to other ways of smoking.

Apart from Canada, research was conducted by the ministry on health, web searched etc. and almost of them had to amend the law and make new laws. The policy revolves around, what was influence people. out of 68 countries, 25 countries had to make new regulations and otherwise, all countries have the same legislation (Kennedy, Awopegdba, Leon, & Cohen). Such as minimum age of purchase, indoor-use-bans and marketing restrictions (Kennedy, Awopegdba, Leon, & Cohen).  Introducing heavy duty on these products will not affect the overall scenario. People who want to use e-cigarettes, will definitely use them. There is nothing that can be done to stop them.

The government in Australia was on a mission: Stop smoking start repairing (Australian Government , 2019). This was started to raise awareness of the health benefits of quitting smoking (Australian Government , 2019). People demanded more because it was easily available as manufacturers and sellers do not require license for tobacco and nicotine. Apparently, disputes in public areas raised as some people ought to believe that public areas are not meant for smoking (Australian Government , 2019). For the policy, areas that restrict smoking are also the location that does not the use E-Cigarettes (Australian Government , 2019).

How is the Industry Regulated?

Nicotine found is addictive and several children have been harmed by its excessive use. Hence, there is need for regulations. The market is regulated by the Tobacco Control Act which revised to include e-cigarettes (Government of Canada , 2019). Due to health and Safety Reasons, incorporated of some restrictions into this act to reflect the regulations involving all vapour products regardless of the presence of nicotine. These cannot be sold to under 19 and there are prohibitions on the display of tobacco and vapour products (Government of Canada , 2017).

Governments see them pushing smokers away from tobacco, and lost revenue must be made up (J., 2019). It seems attractive target for tobacco tax- addicted politicians, to earn revenue. Tobacco products have long been a target for excise tax. Harm of smoking impose costs on the whole society, consumers should foot the bill (J., 2019). But because the government becomes dependent on the revenue, if smoking decreases there’s a financial shortfall that must be made up with some other source of income, or government should reduce the spending. In 2019 bill was introduced in House of Representatives would impose taxes at the same rate as cigarettes and other tobacco products (J., 2019).

One of the reasons for regulating e-cigarette is the Social objective which is to promote higher values. Other reasons would be opportunity cost, asymmetric information, marginalism, negative externalities and paternalism which require the government to regulate the industry (Brander, 2013). Opportunity costs seems to be high as due to high health care costs and other physical and mental injuries for second-hand smokers and first-hand, there is a need of regulation for e-cigarettes. Asymmetric information arises when consumers are not aware of the effects of using e-cigarettes. Negative externalities result when other individuals are affected. For example, children or individuals from negative externalities refers to those who don’t smoke. Otherwise, net cost on the economy could be very high. Also, if we look at the ethical principles of Kant and Mill, the use of cigarettes should not be promoted as it will bring more harm than benefit to people and economy of a country.

Cost and benefit Regulation

E-cigarette industry has been so far self-regulated by electronic cigarette trade association of Canada. The cost and benefit analysis are commissioned by Health Canada in March 2018. The result was formulated in comparison to the year 2016, considering it as the base year.

Costs

There are negative benefits effects of smoking e-cigarettes including mouth and throat irritation, nausea, headaches, and dry cough. Since e-cigarettes were not regulated and can be used in public please, it’s been reported that youth have been placing marijuana oil into the vials and smoking more freely in and around schools. There is also no regulatory control over how the liquid is considered substitutes for regular cigarettes, but the impacts of its long-term use have not been evaluated. Therefore, some cautions need to be taken before the situation us uncontrollable. E-cigarettes do not leave an odour, in fact these come in flavours, which is the first thing teens are attracted to, like other tobacco products; therefore, it Is not easy for parents to know if their kids are vaping. E-cigarettes are also attracting non-smokers. There has been an increasing trend of nicotine poisoning which has led to accidents particularly among the teens and kids because they do not have enough knowledge. These accidents result in rising costs on the Canadian healthcare system and therefore a burden on the economy. If the sale and use of e-cigarettes can be administered, its cost will go up.

Additional costs are incurred to the government as on the one side, they increased taxes or penalties for vaping products, on the other hand, government to provide better medical services for such treatments. The excessive use can be fatal. Consequently, the propensity to buy cigarettes among individuals increases. This makes it hard to explain why people choose such products over their own health. Apparently, Government is the only regulating body that is trying to maintain balance between the consumption and selling, which according to the scenarios seems impossible.

 The cost is associated not only in terms of health but other costs such as, labelling, child-resistant refills and stand-alone containers are also noticeable. The government use labelling techniques to stop people from the intake of nicotine. Such as with the proportion of the content, warning symbols are sued just to bring in notice of people and the costs for such type is $75,000 for 6000 products (Canada Gazette, Part I, Volume 153, Number 25: Vaping Products Labelling and Packaging Regulations, 2019). The product being compliance in the market, the costs associated on annual basis was $3million (Canada Gazette, Part I, Volume 153, Number 25: Vaping Products Labelling and Packaging Regulations, 2019)

Benefits

Being this industry growing at an increasing rate, some believe that government is regulating to make money through vape rather than tobacco industry. Collecting money from e-cigarette’s administration can be one benefit if this industry can be regulated. Many smokers report that the use if e-cigarettes has helped them quit smoking but also, the costs associated in term of benefits would give greater advantage by using the word of mouth for not sing nicotine. E-cigarettes making these kinds of health claims are banned in Canada.

 The major benefits to the e-cigarette manufacturing companies is that they are making good profits while addicting consumers on the use of vapour products. The addiction works like need to the users making it more like a commodity product creating an inelastic demand which may be hard to shift afterwards. Determining the costs and benefits above, costs seems to be higher due to its unknown but unavoidable future consequences (Canada Gazette, Part I, Volume 153, Number 25: Vaping Products Labelling and Packaging Regulations, 2019).

Losers and winners from regulation

 Many losers after the regulation would be the manufacturers, retailers and suppliers of cigarettes. Their sales will be affected due to the price increase of products after the regulation. Overall sales will also decrease due to the vapour products with nicotine not being allowed to be sold in Canadian markets. Restrictions on the advertising and display of the product will also result in decreased demand. Higher price needs to be paid by those who think, they can benefit from e-cigarettes or smoke cessation. This will also make it hard for people to quit smoking as the substitute, which was available, is now being restricted. Government making money out of the sales of these products like, cigarettes, tobacco and other harmful substances will have to face a cut in the regular sales and therefore face the decrease in tax revenue as well.

 Winners here are the users who stop or decrease their consumption of e-cigarettes and related products. These users will not be prone to any kind of health-related issue as they’re not addicted to the extent that makes it harder to quit smoking. Once again, tobacco companies, whose sales have decreased due to the introduction of e-cigarettes, will benefit as the sales of regular cigarettes go up. The government will be the winner as it will earn in the form tax money. Mostly, it is the goal of the social interest groups to gather people and create a sense of where they can show togetherness and strength, this could be possible with such kind of environment and impact of decreased sale of such products. On the other hand, companies that make regulated nicotine products will see increase in the sale of its products. There may be hand of the special interest groups such as pharmaceutical companies in trying to regulate or stop the use of e-cigarettes. These pharmaceutical companies are worried about their sale of drugs treating the people affected from smoking such as expensive drugs related to chemotherapy.

Other regulatory reforms

Since e-cigarettes have electronic parts, they should have been legislated separately from other tobacco products or more regulations should be assigned with the use vaping products. Many incidents were reported with the explosion of e-cigarettes that have caused several damages and burns. Otherwise, consumers may end up assuming e-cigarettes to be excluded from the laws that are not clear or vague or can find ways around to deal with the violation of laws. Online sales of e-cigarettes should be regulated as well since this can be the route to by-pass laws. People should be educated on its use, pros and cons so that they can make the right decisions. To govern this, the government has to go through intensive research to understand the psychology of the human on taking these kinds of drugs. Flavoured e-cigarettes should be banned if the government wants to protect youth and middle school children as this is one of the marketing tactics that is affecting youth adversely.

Surprisingly, Availability of e-cigarettes or other products like Nicotine are easily accessible in the market. The government may be from developing, developed countries need to have regulations for supply of such products. There needs to have regular checks on the amount and the supply of e-cigarettes related products. By this there will be some limitations assigned for the supply of the product. Easy access to these products, will increase the demand as well. This is the concept that needs to be controlled. The main concept here will revolve around scarcity be like secrease in supply will increase the price of the product and demad either reamins the same or continiuous tonrise seeing present scenarios. This also means prices will be increawed to the greater extent that is the utility deriving from the consumption of e-cigarettes will began to get low as compared to the rise is proprtion of price. The major offset would be to the suppliers but consequently, givernment will be providing some proportion of advantage in term of earnings by giving them quoats. This will regulate the market and influence suppliers to switch industries and build social responsisbility by not apply negative externalities. Egative externalities would arise for the one who does not smoke, even being flavoured.

Industry association and its role

The electronic cigarettes trade association of Canada has been formed and self-regulated e-cigarettes vendors for the purpose of informing themselves of recent Canadian rules, regulations, research, safety standards, and audit results etc. pertaining to the use and trade of e-cigarettes (E-Cigarettes in Canada, 2018). The role of this association is to provide all the legal information and links to other informative sites in order to educate consumers and businesses. This way the association is trying to persuade the Canadian government that they are actively taking care of safety standards and complying to existing laws so that there is no need for specific regulation on this industry. They believe in the free market with no restriction because restrictions with a price and that price is eventually passed on to the end consumers. Even though their statements could be subjective on nature, but the site has some very good links and information.

One-for-One rule

The rules apply an incremental increase in the burden for businesses with the new regulations being introduced (Canada Gazette, Part I, Volume 153, Number 25: Vaping Products Labelling and Packaging Regulations, 2019). Under the new legislations, business are queries to keep track of the amount of vaping containers being imported and meet the protocol test (Canada Gazette, Part I, Volume 153, Number 25: Vaping Products Labelling and Packaging Regulations, 2019). The test requires manufacturers and importer to obtain testing of the facility (Canada Gazette, Part I, Volume 153, Number 25: Vaping Products Labelling and Packaging Regulations, 2019)

Regulatory Cooperation and alignment

European Union and United states require vaping products to have specific information on the labelling side of the product (Canada Gazette, Part I, Volume 153, Number 25: Vaping Products Labelling and Packaging Regulations, 2019). The list of ingredients and information on toxicity of nicotine . Warning, addictiveness statement to be displayed on the product (Canada Gazette, Part I, Volume 153, Number 25: Vaping Products Labelling and Packaging Regulations, 2019). This will prevent poisoning. Though the descriptive requirements are different, but the procedure stays the same.

I have always heard from my friends that vapes are not harmful for us since they are just flavours. Never agreed to the fact because there were some cases where children were introduced to these e-cigarettes have lost their appetite and got addicted to it, started doing it regularly. China is the most populated country in the world and the statistics say that most of the Asian countries are still at under ten percent use of marijuana and vapes, but the western countries including America and Canada has faced a major rise in the number of customers and users. Also, it is interesting to know that scientists claim that marijuana smell lasts way more than a cigarette and could even have impact on the person who smells it.

Talking about the long-term effect of marijuana and e-cigarette we can’t really forget talking about the way it is particularly used these days. Hotbox is the term that describes when smoke is collected in a small area while smoking and in order to get high, they use the smell that lasts for more than any other smell. In this situation vehicles are driven, and it is natural to see accidents happen. These car accidents are later blamed on the way roads are built or any other reason. In the end burden is still being laid on the government for dealing with such accidents. Not only road accidents but in a lot of cases with the use of such drugs, youngsters have gone missing after partying with their friends and were found later, in the forest areas or in quite areas of the town or the city.

Medicinal use of Marijuana is useful and effective as well. This is proven to the government of Canada and helped them come to a decision of legalizing its use. It is not a trouble when it is only used for the reason it has not been restricted anymore. Flavours of Vapes are easily available in the market and a lot of shops have recently open in every town to provide with the supplies of such products. If the use is limited and only the ones who are supposed to use these products are having them, there is no trouble, but it starts getting worse when most of the young children are seen smoking outside their schools/colleges.

 Forty percent of the consumption of tobacco is seen in the form of pan masala and chewing of tobacco itself in north eastern countries like India, Pakistan, Srilanka and Nepal. But compared to that western countries like Canada have not shown any interest in usage of such products to reduce the consumption of e-cigarettes and marijuana which adds up to the air pollution mainly effecting the people around.

Conclusion

E-cigarette use is expanding its prominence every year depicting that this industry will sure bring some costs and benefits to the country. Since there are no specific regulations on e-cigarettes, BC Government passed a bill to regulate e-cigarettes under the tobacco control act to proactively deal with the growth in this industry. Regulation for E-cigarettes industry are the same as the other tobacco industry with some specific conditions and laws pertaining to e-cigarettes. The major concern is the presence of carcinogenic and unregulated chemicals such as nicotine. Other concern is its widespread consumption in youth, especially the middle school kids which could normalize the trend of smoking again. All the past efforts by the government towards creating social interest group will go in vain if people continue to behave this way.

Observing the cost and benefits of devices, especially future costs can be higher than the benefits from it. The winner is also the strong group such as manufacturers and retailers. There is an asymmetric information to consumers. Therefore, the government need to intervene in this matter otherwise the results will be damaging if the government will not intervene at this point and tobacco industry will be the witness of the condition been continued from past several years. This is the start of legislation of this industry, but there is need for regulations specific to the e-cigarettes and just not be incorporated under the Tobacco Control Act due to differences in the devices and its ingredients.

Appendix

Table 1. Main issues, findings and differences of the Clearing the Air and OTRU e-cigarette studies

(Canada Gazette, Part I, Volume 153, Number 25: Vaping Products Labelling and Packaging Regulations, 2019) 

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