The Prevent All Cigarette Trafficking (PACT) Act was originally passed in 2009 to crack down on untaxed cigarette sales across state lines. In 2021, Congress amended the law to include "electronic nicotine delivery systems" (ENDS) — basically, all vaping products.
The PACT Act applies to anyone who sells or ships vaping products across state lines. If you're an online retailer selling to customers in other states, you have to comply with all of its requirements.
📋 PACT Act Requirements for Vape Retailers
| Requirement | What It Means |
|---|---|
| Age Verification | Must verify buyer is 21+ using government database at checkout, AND require ID check at delivery |
| Tax Collection | Must collect all state, county, and city tobacco/vape taxes for the buyer's location |
| Registration | Must register with ATF and with each state's tax authority where they sell |
| Reporting | Must file regular reports with state tax authorities showing sales and taxes collected |
| Delivery Method | Must use a delivery service that checks ID at the door (USPS is banned for vape products) |
| Labeling | Packages must clearly state they contain tobacco products and require adult signature |
Penalties for Violating the PACT Act
The PACT Act has teeth. Retailers who violate the law can face:
- Civil penalties: Up to $5,000 per violation for a first offense
- Repeat violations: Up to $10,000 per violation
- Criminal charges: Up to 3 years in prison for intentional violations
- Product seizure: Authorities can seize shipments that violate the law
- Loss of license: Retailers can lose their state and federal licenses
For consumers, the consequences are less clear but still real. Depending on your state, ordering from a non-compliant retailer could result in package seizure, and in some states, you could technically owe unpaid use tax on the products.
