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Vaping industry up in smoke over new regulations

INDIANAPOLIS (WISH) – New tobacco and e-cigarette regulations have some businesses in Indiana questioning what will happen next.

“Things just got really hard for over 200 vape shops in Indiana and their 2,500 employees,” said Evan McMahon, the chairman of Hoosier Vapers, Inc., an e-cigarette advocacy group.

The FDA and Health and Human Services sees it differently

“We owe it to ourselves to do better. We can do better,” said HHS Secretary Sylvia Burwell.

New tobacco regulations announced Thursday apply to e-cigarettes, cigars, hookahs and pipe tobacco.

The FDA says this is about helping children not get addicted to tobacco.

But those in the tobacco and e-cigarette industry say these regulations will wipe them out.

“Within two years, 99 percent of the vaping industry will be shut down,” said McMahon. “$5 million per product. That’s per flavor, per nicotine level. That’s unreachable for any e-liquid manufacturer.”

E-cigarette manufacturers will now have to pay $5 million to the FDA to review their products.

“We cannot let the enormous progress that we have made towards a tobacco-free generation be undermined by products that impact our health and economy in this way,” said Burwell.

E-cigarette manufacturers and distributors say they help people quit. The FDA says e-cigarette use among high school students grew 900 percent from 2011 to 2015. While federal law doesn’t currently have an age requirement for e-cigarettes, Indiana does.

“You have to be 18 to come into my store, so I don’t market to children,” said David Cohn, the owner of World of Vapor.

Cohn and his business partner have been in business for two years. The Irvington shop sells every e-cigarette accessory the FDA will now be able to regulate, including liquids, atomizers, batteries and flavors.

“I understand some regulations, but sometimes when they just become crushing, it’s going to be interesting,” said Cohn.

Before Thursday, federal law has never regulated the sale of cigars to people under 18. While smoking rates are down, the FDA said today high school boys smoke cigars at the same rate as cigarettes. Cigar makers would also have to pay for the $5 million review.

“With this rule the FDA will be able to prevent misleading claims and provide consumers with information to help them better understand the risk of tobacco use,” said Dr. Rob Califf, of the FDA.

These rules go into effect in 90 days, but manufacturers have two years to come into compliance. A House committee passed a bill last month that would ease some of these rules.