Tag: IKE Tech

  • A vape directory is only as strong as the enforcement behind it

    A vape directory is only as strong as the enforcement behind it

    By Jason Carignan

    Pennsylvania has officially begun enforcement for its new vape directory regulation, and nicotine vapes missing from the state list are denoted as contraband subject to seizure. The state joins more than a dozen others in tying market access to a product’s federal premarket review status, and it deserves credit for drawing a clear line between what may be sold and what may not. The harder test starts now. Most of what the directory excludes was already illegal to sell under federal law, and unauthorized products still made up about 69% of e-cigarette sales at mainstream retailers in December 2025.

    Washington has put real resources behind the problem at the border. Congress required the FDA last November to direct at least $200 million toward vape enforcement, including $2 million for a multi-agency task force on illegal imports. In May, Customs and Border Protection, working with the Coast Guard and the Food and Drug Administration, announced the seizure of more than 18 million vapes valued at over $175 million. Ports matter, but a product that clears one still has to be sold somewhere, and the retail counter is where state officials are best positioned to act.

    Retail is also where enforcement is hardest. Authorized products move through a structured distribution chain that is relatively easy to inspect. Unauthorized products tend to surface in tobacco shops, liquor stores and vape retailers, which are far harder to police. Pennsylvania has about 11,000 licensed sellers of other tobacco products, a category that includes vapes, and no directory can inspect any of them. If those sellers conclude that inspections are rare and penalties are manageable, little will change. The market for unauthorized products has persisted through years of federal action, and a new list alone will not end it.

    The cost of weak enforcement falls hardest on the companies that did what the law asked. Manufacturers on Pennsylvania’s list invested tens of millions of dollars on the PMTA requirements to submit their products for FDA review, filed annual certifications, paid fees and posted surety bonds of at least $50,000. They compete against sellers of flavored disposables, which account for most unauthorized sales, and those sellers carry none of those costs. Compliance only pays when noncompliance costs more, and until unlisted sellers are out of business, there is no real growth opportunity for the companies that followed the rules.

    Pennsylvania’s law gives the attorney general real tools, including seizure of unlisted products, civil penalties that escalate to license revocation for repeat violators and unannounced compliance checks. The state should use them broadly. That means prioritizing inspections where unauthorized products are most concentrated, which is independent distributors, tobacco shops, liquor stores and vape retailers, and acting against every unlisted product rather than a handful of visible ones. Lawmakers should also look at penalty levels. A first offense can be negotiated down to the cost of destroying the seized product, which is unlikely to deter a seller who can restock the next week. Fines that exceed the profit from unauthorized sales would change that math. And because the law links the scale of enforcement to what the General Assembly budgets for it, funding will determine whether any of this happens.

    There are fair objections. Stricter enforcement can burden small retailers that are trying to comply, so inspectors should focus first on repeat offenders and high-volume sellers, and the law already requires the state to publish a list of sellers with three or more violations. Enforcement also has limits. It will not by itself stop online or cross-border sales, which is why state action has to work alongside the federal effort at the border.

    Technology can help, but only as a complement. Manufacturers can build verification into products from the factory to the point of use, and I work on that problem every day. Even so, those investments pay off only in a market where unauthorized competitors face severe consequences. Enforcement comes first, and everything else depends on it.

    When Pennsylvania’s inspectors begin their work, the directory will tell them what may be sold. What the state does next will determine whether the companies that played by the rules finally get a market they can compete in.

    Jason Carignan is a founding member of IKE Tech and chief commercial officer of Chemular Inc.

  • IKE Tech Launches Continuous Compliance Platform for Nicotine Products

    IKE Tech Launches Continuous Compliance Platform for Nicotine Products

    IKE Tech LLC announced the launch of IKE 2.0, a platform designed to provide continuous compliance controls for regulated products, initially focusing on the global nicotine category. The platform connects identity verification, product authentication, configurable policy enforcement, and compliance intelligence across the product lifecycle, including after retail sale. The company said the system is designed to verify users, authenticate products, and apply requirements based on factors such as jurisdiction, product, and SKU.

    IKE 2.0 is available through a web platform for manufacturers and brand operators and a configurable consumer application. IKE Tech said the platform uses a Human Identity Token to abstract verified personal information, with biometric processing performed on-device. The company said it is SOC 2 Type II certified and designed for GDPR and CCPA compliance. The platform is covered by 11 issued patents, with additional applications pending.

    The company said its technology was the subject of a standalone component PMTA filed with the FDA in April 2025 for interoperable age-verification technology, which the agency accepted for review in 2025. IKE Tech said a controlled Human Factors Study involving 102 participants prevented underage device activation in all attempted cases, while reporting a 91% adult ease-of-use rating and a user error rate below 1%. The study has not been peer-reviewed.

  • Charlie’s Holdings Touts Progress to Shareholders

    Charlie’s Holdings Touts Progress to Shareholders

    Charlie’s Holdings, Inc. sent out a shareholder letter today (June 8), outlining its recent progress and highlighting improved financial stability, portfolio expansion, and regulatory positioning across its premium vapor products business. The company said it strengthened liquidity and operations over the past year, including the $7.5 million sale of 16 PMTA-authorized products to a major tobacco company and the expansion of its U.S. manufacturing footprint to support domestic production, reduce costs, and meet state-level compliance requirements.

    The letter also emphasized Charlie’s strategic focus on regulatory innovation and capital market advancement. The company detailed its licensing agreement with IKE Tech to commercialize an AI-powered age-gating system for disposable vapes, which it believes could unlock significant licensing revenue and potential partnerships. It also noted steps toward a potential uplisting to a national exchange, including a clean 2025 audit, elimination of prior business lines, and shareholder approval of a reverse stock split, while reaffirming its goal of growing compliant nicotine and alternative vapor product sales amid tightening enforcement against illicit products.

  • IKE Tech Engages FDA on AI-Powered ENDS Compliance Solutions

    IKE Tech Engages FDA on AI-Powered ENDS Compliance Solutions

    Today (April 9), IKE Tech LLC participated in a formal listening session with the FDA’s Center for Tobacco Products. The company, a joint venture between Ispire Technology Inc., Berify, and Chemular Inc., presented its point-of-use compliance technology, including its patented Human Identity Token (HIT) that prevents youth access to ENDS products, and highlighted the need for a regulatory framework recognizing software as a tobacco product.

    The session focused on enforcement challenges in the ENDS market, including underage access and the spread of illicit products. IKE Tech outlined its technology platform, which integrates biometric age-gating, blockchain-based product authentication, and an AI-powered governance backend. Executives emphasized that these point-of-use systems address compliance gaps that traditional point-of-sale measures cannot.

    IKE Tech also argued that software embedded in or governing a tobacco product should be regulated under the Tobacco Control Act, noting that current PMTA frameworks do not account for continuous updates and lifecycle management of software. The engagement follows FDA guidance identifying Device Access Restrictions as critical for public health determinations, and builds on IKE Tech’s first standalone PMTA for an interoperable, blockchain-based, point-of-use age-gating solution, which demonstrated 100% effectiveness in preventing underage device activation in human factors studies.

  • IKE Tech Invited to FDA Roundtable on PMTA Submissions

    IKE Tech Invited to FDA Roundtable on PMTA Submissions

    IKE Tech LLC has been invited by the U.S. Food and Drug Administration to participate in an invitation-only roundtable discussion with small electronic nicotine delivery system (ENDS) manufacturers focused on Premarket Tobacco Product Application (PMTA) submissions. The news was announced by Ispire Technology, a founding partner of IKE Tech.

    The February 10 forum, limited to 30 companies nationwide, is designed to gather direct industry feedback on the PMTA process, with IKE Tech selected to participate in the Manufacturing Controls panel examining operational challenges and compliance practices. The company is developing a blockchain-enabled, Bluetooth-based age-gating system intended to verify legal-age access at the point of use, which has been submitted as a component PMTA for an interoperable age-verification technology. The FDA session is expected to inform future regulatory guidance and potential refinements to the PMTA review framework.

  • Charlie’s Holdings, IKE Tech Launch AI Verification for Vapes

    Charlie’s Holdings, IKE Tech Launch AI Verification for Vapes

    Charlie’s Holdings announced a licensing deal to bring what it describes as the first AI-powered, blockchain-based age-verification system for vape products to the U.S. market. The California–based company said it signed a definitive agreement with IKE Tech to commercialize the technology, which is designed to prevent underage access to vapor products while allowing compliant sales to adults.

    The company positioned the move as a response to regulatory pressure on flavored vaping products, which it said are preferred by 80–90% of adult consumers and play a key role in helping smokers switch away from combustible cigarettes. Charlie’s noted that despite broad recognition of vaping as a lower-risk alternative to smoking, the FDA has yet to authorize a single flavored vapor product, while state-level flavor bans in markets such as California and Massachusetts have reshaped the legal landscape.

    According to Charlie’s, those restrictions have contributed to growth in illicit products and reduced legal options for adult smokers seeking alternatives. The company said its age-gating system is intended to address youth-access concerns directly, potentially offering regulators a technology-based compliance tool that could support more balanced oversight of the flavored vapor category.

  • Ispire, IKE Tech Applaud FDA’s Illicit Vape Market Mandate

    Ispire, IKE Tech Applaud FDA’s Illicit Vape Market Mandate

    Ispire Technology Inc. and IKE Tech LLC issued statements welcoming the U.S. FDA’s newly funded mandate to crack down on the illicit vape market, following the passage of a continuing resolution signed by President Trump. The legislation directs the FDA to allocate at least $200 million toward electronic nicotine delivery system enforcement, including $2 million for a multi-agency task force with the DOJ and DHS to block illegal imports.

    IKE Tech President John Patterson called the strengthened enforcement a critical response to a market where “nine out of 10 vapes on shelves are illegal.” He said current border controls and tracking systems are failing, and highlighted the company’s development of blockchain-secured authentication tags and AI-driven age-verification tools to help regulators and manufacturers instantly verify product legitimacy.

    Ispire co-CEO Michael Wang said enforcement must be paired with proactive technology to protect consumers and level the playing field for compliant companies. He noted that Ispire and IKE Tech have submitted a blockchain-enabled age-verification System-on-a-Chip to the FDA as part of a PMTA, offering a potential framework for secure, verifiable, and interoperable compliance across the U.S. vape market.

  • UK Tobacco and Vapes Bill Faces Scrutiny as it Goes to Committee

    UK Tobacco and Vapes Bill Faces Scrutiny as it Goes to Committee

    The UK’s Tobacco and Vapes Bill enters its committee stage in the House of Lords today (October 27), drawing sharp focus from the vaping and retail sectors over its potential market impact. The bill aims to ban tobacco sales to anyone born after January 1, 2009, and introduces new limits on vape advertising, flavors, and packaging. While positioned as a public health milestone, industry stakeholders warn that the legislation could disrupt the legitimate vape trade and accelerate the illicit market if not implemented carefully.

    John Patterson, president of IKE Tech, said that while the government’s intent is commendable, the proposals rely too heavily on traditional retail enforcement.

    “The current proposal won’t make the vision of a vape-free youth generation a reality,” Patterson said. “The UK has a unique opportunity to set a global benchmark for responsible vaping regulation. To make a real difference, we must move beyond surface-level fixes and shift the focus to preventing access at the point of use, using robust, technology-driven age verification.”

    Retailers also voiced concern over compliance burdens and unfair competition from unregulated sellers. Kay Patel, of Best One, said responsible retailers already face rising costs and enforcement pressures, while illicit sellers continue to “flood the market unchecked.” He urged lawmakers to include manufacturer-level safeguards and coordinated supply-chain accountability. Industry figures warn that without such measures, the bill could penalize compliant businesses while failing to achieve its youth protection goals.

  • IKE Report Urges Tech-Driven Solutions to Stem Vaping Issues

    IKE Report Urges Tech-Driven Solutions to Stem Vaping Issues

    Smarter age-verification tools are urgently needed to curb youth vaping and the booming illicit market in the U.S., according to a new report from identity verification specialist IKE Tech. The study, The First Vape-Free Youth Generation, surveyed 5,000 respondents across the U.S. and U.K., including 500 teenagers. It found that while nearly half of U.S. adults believe current regulations are effective, 41% see them as ineffective or counterproductive. Despite FDA crackdowns, flavored disposables remain widely available, fueling both youth uptake and a $2.4 billion illicit vape market in 2024.

    Peer pressure, easy access, and weak age checks are driving the crisis, with 73% of respondents saying minors buy vapes online and 67% noting lax in-store controls. IKE Tech argues that technology-enabled solutions, such as biometric locks and digital age checks at the point of use, are critical to closing enforcement gaps.

    “By integrating age verification directly into the device, we go beyond packaging restrictions and sales bans to ensure that only adults can access these products, no matter where or how they’re sold,” said John Patterson, president of IKE Tech. “It’s time to complement federal regulation with innovative tools that actually work in the real world.”

    Patterson, who will be speaking at GTNF 2025 in Brussels on youth access prevention,  added that “FDA has taken bold steps in restricting flavored e-cigarettes, but enforcement gaps remain, especially with online sales and black market products.”

     Download the full report here.  

  • Study: Chips and Biometrics Protect ENDS Devices from Underage Use

    Study: Chips and Biometrics Protect ENDS Devices from Underage Use

    IKE Tech LLC announced the results from a multi-center Human Factors Validation Study evaluating its Bluetooth Low Energy (BLE) System, where 100% of users completed age verification, and no underage users were able to activate a device. According to the company, IKE System is the first interoperable biometric blockchain-based platform designed to control access to electronic nicotine delivery systems.

    IKE Tech is a joint venture between Ispire Technology Inc., Berify, and Chemular.

    The study assessed usability, safety, and effectiveness in preventing underage access to ENDS, using BLE-enabled chips and biometric authentication to control device access in real-time.

    “Our findings prove that digital access control is not only achievable but scalable—and essential to the future of ENDS regulation” said John Patterson, President of IKE Tech. “We’re not just building technology. We’re building a new regulatory framework, one that gives the FDA and manufacturers powerful tools to safeguard public health and ensure adult-only access. This is bigger than just a chip—it’s a paradigm shift.”

    Conducted with more than 100 participants, the study simulated real-world use of the IKE system. Participants downloaded the app, verified their age, paired with a test device, and interacted with BLE-based access controls. Devices could only be reactivated with biometric authentication. One hundred percent of devices deactivated after a period of inactivity or loss of Bluetooth signal, and 91% rated the app “extremely easy” or “very easy” to use.