Lawsuit alleges online retailers violated city law intended to protect youth from harmful tobacco use by selling flavored nicotine pouches like “Zyns”
SAN FRANCISCO (September 4, 2024) — San Francisco City Attorney David Chiu announced a lawsuit today against four online tobacco retailers for unlawfully selling flavored nicotine pouches to consumers in San Francisco. The lawsuit, filed against Rogue Holdings LLC, Swisher International, Inc., Northerner Scandinavia, Inc., and Lucy Goods, Inc., alleges the retailers violated state and local law established to prevent youth nicotine addiction and tobacco use, which is unlawful conduct that also violates the state Unfair Competition Law.
“It is appalling the length tobacco companies will go to reinvent their products to addict a new generation of young people,” said City Attorney David Chiu. “The nicotine pouches sold on these sites are dangerously addictive and come in a variety of sweet flavors clearly meant to appeal to young people. We will not allow these companies to flagrantly disregard the law and unravel decades of progress reducing youth tobacco use. These products are not welcome here, and we are taking decisive action against these online retailers for selling these products in San Francisco.”
“Online retailers who undermine our laws put the health of San Franciscans, and especially our youth, at risk,” said San Francisco Health Officer Dr. Susan Philip. “We must remain diligent to ensure that the industry is held accountable to prevent young people from purchasing products that can ultimately lead to nicotine and tobacco addiction.”
“San Francisco has been at the forefront of preventing tobacco products, particularly flavored tobacco products, from getting in the hands of young people,” said Supervisor Shamann Walton. “We need to go after bad actors who violate our local laws by selling flavored nicotine pouches in our city. I stand with City Attorney Chiu on this effort.”
“We applaud City Attorney Chiu for his leadership in enforcing laws prohibiting the sale of flavored tobacco products,” said Alexandria Felton, Southwest Regional Advocacy Director for the Campaign for Tobacco-Free Kids. “His efforts are critical to ensuring these laws work as intended to stop tobacco companies from addicting another generation of kids with flavored products – including nicotine pouch products that are sweetly flavored, highly addictive and heavily promoted on social media. We need strong action now to prevent youth use of these products.”
“Youth leaders across San Francisco are prepared to support any action against the aggressive and pervasive marketing of a new generation of tobacco products to youth,” said Fahad Qurashi, Chief Program Officer of Youth Leadership Institute. “While the products evolve, the strategy is the same: targeting young people to be their next generation of consumers using bright colors and sweet flavors. Youth Leadership Institute stands strong with our city officials, community-based organizations, government agencies and community members in creating a healthy and thriving community, free from the negative impacts of tobacco, and building on our city’s legacy of strong health equity efforts.”
Background
The proliferation of flavored tobacco products has threatened decades of progress in reducing youth tobacco use. Tobacco products are much more attractive to young people when they are flavored. The 2023 California Youth Tobacco Survey found that most high school survey respondents who were currently using tobacco reported using flavored tobacco products. The industry skillfully keeps up with evolving youth trends, now offering tobacco products in flavors like raspberry lemonade mint, berry citrus, mango, and peppermint.
The latest flavored tobacco product to gain traction among young people is “nicotine pouches,” commonly referred to as “nic pouches” or “Zyns,” with the ZYN brand dominating the U.S. market for flavored nicotine pouches. Nicotine pouches are small water-soluble packets containing nicotine powder or salts that users place between the gum and lip, allowing the nicotine to be absorbed into the bloodstream. The pouches, which are typically packaged in small round plastic canisters, are sold in a variety of fruity, minty, and other flavors.
Nicotine pouches are cheaper than cigarettes or vapes and perhaps even more addictive than cigarettes. A user of nicotine pouches absorbs twice as much nicotine versus a cigarette smoker. Nicotine pouches are particularly appealing to youth given the low cost and attractive flavors, and recent studies have found that more children are trying and using nicotine pouches. The 2023 California Youth Tobacco Survey found nicotine pouches are the second most common form of tobacco use among California 8th graders.
The consequences of hooking a new generation on tobacco and nicotine products are dire. Nicotine exposure during adolescence can harm the developing brain and adversely impact learning, memory, and attention. Nicotine is a highly toxic substance, especially in concentrated forms like that found in nicotine pouches. Ingesting even a small amount can lead to nicotine poisoning in children.
Due to the alarming public health risks of flavored tobacco products, San Francisco enacted laws prohibiting the sale or distribution of flavored tobacco products to any person in San Francisco. Supervisor Shamann Walton, former City Attorney Dennis Herrera, and former Supervisor Malia Cohen spearheaded San Francisco’s successful efforts to prohibit the sale of flavored tobacco products, such as e-cigarettes and nicotine pouches.
Defendants Rogue Holdings LLC, Swisher International, Inc., Northerner Scandinavia, Inc., and Lucy Goods, Inc. are U.S.-based companies that sell a variety of flavored nicotine pouches directly to consumers via their websites. These companies are flouting City laws by selling flavored tobacco products to consumers in San Francisco.
A November 2023 report from researchers at UC San Diego suggests that as California and local jurisdictions have taken action to prohibit the sale of flavored tobacco products against brick-and-mortar retailers, online sales of flavored tobacco products have increased. Enforcing these laws against online retailers to stop their sales in San Francisco is key to protecting our youth from these dangerous products.
The lawsuit, filed on behalf of the People of the State of California and the People of the City and County of San Francisco, alleges violations of San Francisco’s ban on flavored tobacco products as well as violations of California’s Unfair Competition Law. The People seek injunctive relief, civil penalties, and attorneys’ fees. The office filed a similar enforcement action against online retailers of e-cigarettes in December 2023.
The case is People of the State of California and People of the City and County of San Francisco v. Rogue Holdings LLC., et al., San Francisco Superior Court. The complaint can be found here.
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