Shopify to ban vape sales on platform

• Shopify (NYSE:SHOP) plans to ban all vape product sales from its platform following regulatory pressure in the U.S.
• The move comes after talks with 25 U.S. state attorneys general targeting illegal e-cigarette sales online.
• The decision could disrupt an estimated $9 billion illegal vape market, according to industry estimates.

Shopify (NYSE:SHOP) plans to ban all vape product sales from its e-commerce platform as early as this week, following pressure from U.S. state attorneys general.

The decision follows ongoing discussions with a bipartisan coalition of 25 U.S. state attorneys general focused on restricting illegal e-cigarette sales distributed through online marketplaces.

"We've always prohibited illegal activity and take action when we become aware of merchants violating our policies," said a Shopify (NYSE:SHOP) spokesperson in a statement, adding that enforcement decisions are guided by global legal frameworks.

The company also said it adjusts enforcement policies when legal requirements change, while sources familiar with the matter said the ban will apply to all vapes in the U.S., regardless of regulatory status.

Following the announcement the Shopify Inc share price was unchanged at $0 as no market pricing data was provided in the source material.

Shopify Inc operates an e-commerce infrastructure platform that supports millions of merchants globally, and the vape category has been part of a wider regulatory debate over illegal online sales.

The illegal U.S. vape market is estimated at about $9 billion by British American Tobacco, while the U.S. Food and Drug Administration has authorized only 45 e-cigarette products, mostly tobacco-flavoured, limiting the legal market.