HARRISBURG – Attorney General Dave Sunday led a bipartisan coalition of 24 other Attorneys General and the City of New York in urging major credit card companies and payment processors — including American Express, Capital One, Citi Group, Mastercard, Visa, PayPal, Stripe, Sezzle, and Block (operator of Square, Cash App, and Afterpay) — to take stronger action to prevent their payment networks from being used to facilitate sales of illegal vaping products.
In letters sent to the corporate leadership of each company, Attorney General Sunday and the coalition called for immediate collaboration to block unlawful transactions that enable the widespread distribution of illegal vaping products, particularly to young people.
The action is the latest taken by Attorney General Sunday to protect Pennsylvanians from harmful vaping products. Last month, the Pennsylvania Office of Attorney General recently commenced with the oversight of e-cigarette manufacturers distributing products in the Commonwealth.
“Electronic cigarettes, or vaping devices, are often advertised in ways that appeal to children and teens, and oftentimes, these young people are accessing these vaping devices through unmonitored online purchases,” Attorney General Sunday said. “E-cigarettes are highly addictive and pose significant health risks, especially to young people. We are asking these payment processors and credit card companies to crack down on the illegal sales of vaping devices through the internet.”
Federal law requires that all e-cigarette products receive authorization from the U.S. Food and Drug Administration (FDA) before they can be legally marketed or sold in the United States. To date, the FDA has authorized only 41 e-cigarette products, none in flavors other than tobacco or menthol, meaning the vast majority of vaping products sold are illegal. Products that have not received FDA authorization are considered “adulterated” under federal law and cannot legally be sold or shipped in interstate commerce.
In addition, the federal Prevent All Cigarette Trafficking (PACT) Act imposes strict requirements on online sellers, including age verification, registration, and compliance with all applicable state and local laws. The coalition argued that many online retailers are failing to comply with these laws, as investigations show that most online sellers violate these requirements, including basic safeguards meant to prevent youth access. Many of these sales are also illegal under state and local laws, including in Pennsylvania. Despite these restrictions, unauthorized e-cigarettes continue to be sold in vape shops or online and shipped directly to consumers, with transactions frequently processed through major payment networks.
The Office of Attorney General has taken several recent actions to crackdown on e-cigarette and vaping devices including:
- E-Cigarette/Vape Manufacturers Now Required to be Certified with Office of Attorney General, with Act 57 of 2025 Now in Effect
- Attorney General Sunday Sends Bipartisan Letter to Feds in Support of Continuing the National Youth Tobacco Survey
- The Office of Public Engagement offers a training program for school staff to equip educators with the basic knowledge about e-cigarettes, how nicotine impacts a developing brain, why youth are especially vulnerable to addiction, and how to identify vaping devices. Interested parties can book a session online.
States have taken enforcement actions against illegal businesses, including litigation and referrals to federal authorities seeking their placement on the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Noncompliant List. However, the coalition emphasizes that enforcement against vape sellers is not enough, and that payment processors play a critical role in stopping illegal sales at their source.
Attorney General Sunday and the coalition are calling on the credit card companies and payment processors to take meaningful steps to prevent their services from being used to process illegal e-cigarette transactions. Specifically, they are requesting a meeting to discuss solutions, including prohibiting merchants and payment processors that violate federal, state, and local laws from using their networks. The coalition explains collaboration between government and the private sector has successfully reduced illegal tobacco sales in the past and is essential to addressing the current surge in unlawful vaping product distribution.
Attorney General Sunday, along with the Attorneys General of New York, California, and Illinois, took the lead on sending these letters. Joining them are the Attorneys General of Arizona, Connecticut, Delaware, Hawaii, Indiana, Maine, Maryland, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Tennessee, Vermont, Washington, Wisconsin, Puerto Rico, and New York City.
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