Wisconsin regulators imposed some of the largest penalties yet under the state’s new vape-sales restriction law, fining Exclusive Tobacco nearly $13 million and issuing a separate $450,000 penalty to Green Bay–based Dave’z Smoke N Vape. The Department of Revenue said Exclusive Tobacco’s Oshkosh location was found selling vape products not included on the state’s approved directory and operating with an expired municipal license. Inspectors seized 1,244 illegal vapes, and because the law carries a $1,000-per-device-per-day penalty, the fine totaled more than $12.4 million. A follow-up inspection triggered an additional $431,000 fine. Both cases are under appeal.
The state has stepped up enforcement since the law took effect September 1, issuing 42 removal orders and conducting 27 product seizures, including actions against shops operating without valid licenses. Regulators say the directory system—allowing only 303 approved products—is intended to standardize the market and reduce youth access. Store owners counter that the rule has wiped out much of their inventory, with some retailers reporting severe losses, employee layoffs, and even store closures.
A legal challenge is underway, with the industry group Wisconsinites for Alternatives to Smoking and Tobacco appealing a federal judge’s refusal to block the law. The Seventh Circuit Court of Appeals began hearing arguments this week, and a ruling is expected early next year. Shop owners argue the law unfairly benefits large tobacco companies, while state officials maintain it is a measured approach to regulating a rapidly expanding market.
