The Canada Border Services Agency said officers at the Point Edward port of entry in Sarnia, Ontario, seized over CAD 4.5 million ($3.2 million) in illegal tobacco and nicotine vapes over a seven-day period. The contraband was reportedly coming across from Port Huron, Michigan, in the United States. The CBSA emphasized that the seizures are part of ongoing measures to prevent illicit products from entering Canada and combat criminal networks, though no additional details were provided.
Tag: Canada
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Canada’s Vape Shops Struggle with Compliance: Report
Nearly half of Canada’s specialty vape retailers were found non-compliant during federal inspections between April 2024 and March 2025, according to a new enforcement report from Health Canada. Inspectors found 43% of 546 specialty stores breached the Tobacco and Vaping Products Act and the Canada Consumer Product Safety Act, resulting in product seizures at 235 locations — up from 38% non-compliance the previous year.
Violations most commonly involved prohibited flavor promotion, improper health warnings, and nicotine concentrations exceeding 20 mg/mL. In contrast, fewer than 1% of 2,136 gas and convenience stores inspected were non-compliant. Manufacturer oversight also revealed compliance gaps, with 45% of 343 samples collected from 119 producers failing key regulatory requirements, prompting the seizure of 286,764 non-compliant products.
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Imperial Canada Urges Action as Illicit Pouch Surge
Imperial Tobacco Canada called on the federal government to act quickly against a growing illicit market for nicotine pouches, following a CBC investigation that found widespread illegal sales in stores and online. The company says a recent Ministerial Order requiring legal pouches to be kept behind pharmacy counters has backfired by pushing consumers toward unregulated, higher-nicotine products sold without age checks.
“By restricting access to regulated products, the policy has driven consumers straight toward unmonitored, illegal alternatives,” said Eric Gagnon, Imperial’s vice-president of corporate and regulatory affairs. He warned that these illicit pouches often lack quality controls and pose risks to public health, especially for youth.
Imperial echoed public health expert David Hammond’s call for stronger enforcement, including proactive retail inspections, but said enforcement alone is insufficient. The company argues that allowing approved cessation products to be sold in convenience stores and gas stations—where adult smokers already shop—would help cut demand for illegal alternatives. Imperial’s ZONNIC, the only pouch authorized by Health Canada, is limited to 4 mg of nicotine and must meet strict standards, unlike the illicit products now proliferating across the market.
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Vaping Advocates Say B.C.’s Bill 24 is ‘Irresponsible’
British Columbia’s proposed Bill 24, the Vaping Products Damages and Health Care Costs Recovery Act, is drawing sharp criticism from harm reduction advocates, medical experts, and the vaping industry, who argue the legislation could jeopardize one of the most effective tools to help smokers quit. The Canadian Vaping Association (CVA) said the government failed to consult key stakeholders before introducing the measure, warning it could devastate small businesses and mislead the public.
“Tobacco and opioids have been proven to kill and cause irreparable harm. Vaping has not killed a single Canadian,” said Sam Tam, president of the CVA. “It would be irresponsible for the B.C. government to require vaping companies, including trade associations, to pay a fabricated cost without considering their ability to help far more British Columbians.”
The bill would allow the province to recover healthcare costs from vaping manufacturers—treating regulated vaping products like tobacco and opioids—despite federal evidence showing that vaping is far less harmful than smoking.
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CVA Urges Education Over Prohibition as Youth Vaping Declines
The Canadian Vaping Association (CVA) is calling on federal and provincial health ministers to prioritize youth prevention and education programs over restrictive vaping bans, warning that prohibitionist policies could fuel the illicit market and push adult smokers back to cigarettes. CVA President Sam Tam said measures such as flavor bans would undermine harm-reduction efforts that have helped millions quit smoking, noting that tobacco use remains the leading cause of preventable death in Canada. The group emphasized that prohibition “leaves adult smokers with nowhere to turn except back to tobacco use,” threatening Canada’s goal of reducing smoking rates below 5% by 2035.
Citing new Statistics Canada data, the CVA said youth vaping rates among Canadians aged 12–17 have fallen to 7.2% in 2025, nearly half the 2019 peak, crediting education-focused initiatives such as Health Canada’s “I Quit for Me” program. The association also highlighted research showing that flavored vaping products are crucial in helping adults switch from cigarettes, referencing studies by McGill University, Public Health England, and the Public Health Agency of Canada. The CVA warned that banning legal, regulated products would drive consumers to the black market, where unregulated, high-strength nicotine products are easily accessible to youth. Instead, the group urged governments to back evidence-based regulation, support enforcement, and expand youth cessation resources rather than pursuing prohibitionist approaches.
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U.S. Judge Grants Recognition to $23B Canadian Tobacco Settlement
A New York bankruptcy judge yesterday (August 26) approved U.S. recognition of Imperial Tobacco Canada Ltd.’s restructuring plan, a key step in a landmark C$32.5 billion (US$23.6 billion) settlement resolving decades of Canadian tobacco litigation. Judge John P. Mastando III granted Chapter 15 approval without objection, clearing the way for the settlement, one of the largest restructurings in Canadian history, to take effect across both jurisdictions.
The deal, approved by an Ontario court in March, involves Imperial, JTI-Macdonald Corp., and Rothmans Benson & Hedges Inc. It will be funded over 20 years, beginning with a C$12 billion (US$8.7 billion) upfront payment, followed by profit-sharing contributions.
The agreement resolves more than a trillion Canadian dollars in claims from class actions and provincial governments over smoking-related health costs.
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Zonnic Ban Accused of Driving Canada’s Surge in Black-Market Pouches
One year ago, Health Canada restricted the sale of Zonnic, the country’s only regulated nicotine pouch for smoking cessation, to pharmacy counters, banning convenience store sales. Imperial Tobacco Canada says the policy has backfired as cigarette purchases jumped 2.8%, and more than 500 million unregulated nicotine pouches flooded the black market.
Eric Gagnon, Imperial’s VP of Corporate and Regulatory Affairs, called the move “punishing innovation” and warned that rural smokers now face barriers to quitting while pharmacists bear added administrative burdens. He urged the government to ensure frontline access to regulated products like Zonnic to support Canada’s goal of under 5% smoking prevalence by 2035.
Imperial emphasizes that Zonnic—which is produced by Nicoventures Trading, a sister company to Imperial—remains the only nicotine pouch meeting national safety standards, and the company is pushing for collaborative solutions with Health Canada to improve accessibility while curbing illicit sales.
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$3.2M of Contraband Tobacco Seized in Canadian Traffic Stop
A traffic complaint in Ontario, Canada, allowed police to uncover a massive shipment of contraband tobacco valued at C$4.4 million ($3.2 million). Police stopped the truck after a concerned motorist reported it for speeding. Provincial police, along with Ministry of Transportation staff, discovered 17,820 kilograms of untaxed fine-cut tobacco during the inspection.
Authorities say the illicit shipment would have cost the government an estimated C$9.1 million ($6.6 million) in lost taxes. A 60-year-old man from Puslinch, Canada, has been charged with trafficking contraband tobacco.
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Canadian Tobacco Settlement a Step Closer to Complete
After years of mediation to resolve long-pending tobacco product-related litigation in Canada, the court-appointed Mediator’s and Monitor’s Plan of Compromise and Arrangement was today (March 7) sanctioned by the Ontario Superior Court of Justice in the ongoing proceedings under the Companies’ Creditors Arrangement Act (CCAA). The sanctioning was a significant step in finalizing the $22.7 billion settlement agreement with Imperial Tobacco Canada (a BAT subsidiary), JTI-Macdonald Corp., and Rothmans, Benson & Hedges (a PMI subsidiary). The settlement has been in negotiations since March 2019.
Following a judicial hearing on the proposed plan, the three companies reached a consensual resolution of all outstanding objections to it. The plan will resolve all Canadian tobacco litigation and provide a full and comprehensive release to the companies.
“We are pleased that the Court has sanctioned the Mediator’s and Monitor’s Plan of Compromise and Arrangement, a critical milestone in the CCAA process, Imperial Tobacco Canada wrote in a statement. “We look forward to the successful implementation of this plan, which maximizes value for claimants, resolves outstanding tobacco litigation, and allows us to emerge from CCAA protection. While there are still some steps that must be taken to implement the settlement, Imperial Tobacco Canada is committed to continue working with the relevant parties to complete this process as quickly as possible for the benefit of all stakeholders.”
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JTI and Others Close to Concluding Canadian Lawsuit
JTI-Macdonald Corp. (JTI-MC) announced that last week it, along with co-defendants Imperial Tobacco Canada (ITC), and Rothmans, Benson & Hedges (RBH), filed materials with the Ontario Superior Court of Justice in joint support of plans to settle all pending tobacco-related claims in Canada, subject to proposed amendments being approved by the court.
The filings stem from a 2019 class-action lawsuit, where in October 2024 the court-appointed mediator proposed the three companies pay a total of 32.5 billion Canadian dollars to settle all litigation. In January, JTI-MC reached an agreement with the other co-defendants on the terms of allocation of payments that were then filed with the Ontario Superior Court Feb. 27, which now awaits court approval.
As a result, JTI-MC intends to record a provision for litigation losses related to the payment of the settlement amount as an operating expense in fiscal year 2024, for an adjusting subsequent event.