Agreement holds online retailers accountable for violating local flavored tobacco bans by selling flavored nicotine pouches including the popular ZYN brand
SAN FRANCISCO, CA (October 24, 2025) — City Attorney David Chiu announced today that his office secured a nearly $3 million settlement that requires online tobacco retailers to prevent sales of illegal tobacco products in San Francisco. The settlement stems from a 2024 lawsuit the City brought alleging that several online tobacco retailers flouted San Francisco’s flavored tobacco bans by unlawfully selling flavored nicotine pouches, commonly referred to as “Zyns,” to San Francisco consumers.
The stipulated judgment requires Defendants, Rogue Holdings LLC, Swisher International, Inc., and Northerner Scandinavia, Inc. to post clear language on their websites stating that flavored tobacco products may not be sold in San Francisco. The companies must also prohibit the use of San Francisco addressees in shipping or billing address fields. The judgment also requires the companies to pay $2,985,000 in civil penalties and attorneys’ fees.
“We cannot risk hooking a new generation of young people on tobacco products,” said City Attorney Chiu. “Due to the alarming health risks, San Francisco banned all flavored tobacco products, including flavored Zyns. Online tobacco retailers are not above our San Francisco laws and cannot ship banned products into our city. We take protecting our community’s health seriously and selling these products will not be tolerated.”
“Flavored-tobacco products are harmful because they appeal to our youth who are developing habits that affect their long-term health,” said San Francisco Health Officer Dr. Susan Philip. “This settlement sends a strong message that San Francisco will continue to be diligent in enforcing its laws that protect the health of San Franciscans.”
“San Francisco took bold action to ban flavored tobacco products because we saw how these companies were deliberately targeting our young people,” said Supervisor Shamann Walton. “This settlement is a reminder that our laws have teeth. If you break our laws and endanger our community, you will be held accountable. Protecting our young people from addiction and holding corporations accountable is how we build healthier, stronger communities.”
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 and that “nicotine pouches” are the second most common form of tobacco use among California 8th graders.
Nicotine pouches are commonly referred to as “zyns” or “nics,” 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 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 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 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, Supervisor Shamann Walton, former City Attorney Dennis Herrera, and former Supervisor Malia Cohen led the successful effort to enact laws prohibiting the sale or distribution of flavored tobacco products to any person in San Francisco.
In September 2024, City Attorney Chiu filed a lawsuit against Rogue Holdings LLC, Swisher International, Inc., and Northerner Scandinavia, Inc for unlawfully selling a variety of flavored nicotine pouches directly to San Francisco consumers via their websites. The lawsuit alleged violations of San Francisco’s ban on flavored tobacco products as well as violations of California’s Unfair Competition Law.
The stipulated judgment, approved by the San Francisco Superior Court yesterday requires Rogue Holdings LLC and Swisher International, Inc. to pay San Francisco $485,000 and Northerner Scandinavia, Inc. to pay $2.5 million.
City Attorney’s Office employees Rhonda Andrew, Sara Eisenberg, Miguel Gradilla, Nancy Harris, Christine Hoang, Ronald Lee, Chris Manitsoudis, and Yvonne Meré worked on this matter to protect public health and hold these online retailers accountable.
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, No. CGC-24-617804. The judgments can be found here and here.
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