April 28, 2026 – New York Attorney General Letitia James is leading a bipartisan coalition urging major credit card companies and payment processors to do more to stop illegal vaping products from being sold using their payment networks, warning that the transactions are helping fuel youth access to unauthorized e-cigarettes.
James, along with 24 other attorneys general sent letters to corporate leaders at American Express, Capital One, Citi Group, Mastercard, Visa, PayPal, Stripe, Sezzle, and Block, the operator of Square, Cash App, and Afterpay, calling for immediate collaboration to block unlawful transactions tied to illegal vaping sales.
Attorney General James said, “Right now, vape sellers are using mainstream payment systems to sell products that shouldn’t be on the market in the first place to kids. Our nation’s children need to be protected from these addictive and dangerous products. If you are helping process the payment, then you are part of the pipeline. These companies have the power to shut this down, and they must act accordingly.”
Federal law requires e-cigarette products to receive authorization from the U.S. Food and Drug Administration before they can be legally marketed or sold in the United States. The FDA has authorized 41 e-cigarette products, none in flavors other than tobacco or menthol, meaning most vapor products sold are illegal, according to the coalition. Products without FDA authorization are considered “adulterated” under federal law and cannot legally be sold or shipped in interstate commerce.
The coalition also pointed to the federal Prevent All Cigarette Trafficking Act, which imposes requirements on online sellers, including age verification, registration, and compliance with state and local laws. James and the other attorneys general argue many online retailers are not complying, and investigations show most online sellers violate those requirements, including safeguards intended to prevent youth access.
The letters also cite state and local restrictions, including flavor bans in states like New York and prohibitions on direct-to-consumer shipping in several states. Despite those limits, unauthorized e-cigarettes continue to be sold in vape shops and online and shipped directly to consumers, with transactions often processed through major payment networks, the coalition said.
States have taken enforcement actions against illegal businesses, including litigation and referrals to federal authorities for placement on the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Noncompliant List. But the coalition said enforcement against sellers alone is not enough and argued payment processors play a critical role in stopping illegal sales at their source.
James and the coalition are requesting a meeting with the companies to discuss solutions, including prohibiting merchants and payment processors that violate federal, state and local laws from using their networks. The coalition said government-private sector collaboration has reduced illegal tobacco sales in the past, noting that in 2005 New York led a similar bipartisan effort with credit card companies to reduce illegal online cigarette sales.
James’ office highlighted several actions it has taken related to vaping enforcement, including a February 2025 lawsuit against what it described as the nation’s largest vape distributors, lawsuits filed in January and October 2025 seeking to shut down two vape shops in Herkimer County and Otsego County for reportedly violating public health laws and selling vapes to minors, and a $462 million settlement secured in April 2023 from Juul Manufacturers for its role in the youth vaping epidemic. The office also cited a bipartisan coalition effort in August 2021 calling on the FDA to regulate e-cigarettes and oral nicotine products, and a December 2020 order directing dozens of retailers across the state to stop selling e-cigarette products to underage customers and to stop selling flavored vaping products in violation of New York state law.
The attorneys general joining James in sending the letters are from Arizona, California, Connecticut, Delaware, Hawaii, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Tennessee, Vermont, Washington, Wisconsin, and Puerto Rico, along with the City of New York.
By Felix Day, CBS 6 Albany
Read More Here