E-Cigarette Distributor Makes Bogus Claims, Oregon Suit Says

The state of Oregon has sued electronic cigarette distributor Smoking Everywhere Inc. for allegedly making false health claims about its products and marketing the devices to children.

Electronic cigarettes, or e-cigarettes, are an alternative to traditional tobacco cigarettes. They are powered by batteries and use vapors to deliver nicotine to smokers.

Oregon Attorney General John Kroger wants the company to pay various penalties and to stop selling the devices in the state until they are approved by the Food and Drug Administration.

With this lawsuit, Oregon becomes the first state to sue an electronic cigarette retailer to block distribution of the devices.

Recently, the state reached settlements with several other electronic cigarette vendors to bar the sale of their products until various state and federal standards are met. Smoking Everywhere declined a similar settlement offer.

In April the company sued the FDA for blocking the import of e-cigarettes into the United States. Smoking Everywhere v. FDA et al., No. 1:09-cv-00771, complaint filed (D.D.C. Apr. 28, 2009).

That suit is pending.

Florida-based Smoking Everywhere imports electronic cigarettes from China and sells and distributes them throughout the United States.

The company's "deceptive sale and promotion of electronic cigarettes causes immediate harm to public health, safety and welfare."

Specifically, Oregon says Smoking Everywhere misrepresents that its e-cigarettes are safer than traditional cigarettes and safe in general when it has no evidence to back up these claims.

Further, FDA testing has revealed that the company's claims that the devices do not contain carcinogens or that its "no nicotine" cartridges do not contain nicotine are false, the suit says.

The complaint also takes issue with the labeling of Smoking Everywhere's e-cigarettes. Besides failing to accurately disclose the device's potential health risks, some of the cartridges are marketed as "dietary supplements" that contain vitamins.

No evidence suggests that vitamins will be absorbed into the body through the use of an e-cigarette, the complaint says.

Finally, Oregon maintains that Smoking Everywhere "employed unconscionable sales tactics" in marketing its products to children. It points out that e-cigarettes come in kid-friendly flavors like bubblegum, chocolate, fruit punch and "cookies n' cream."

The company promoted its products on shock jock Howard Stern's radio show, which targets a younger audience, according to the suit.

Marketing these products to underage consumers "likely will function as a gateway to tobacco abuse and nicotine addiction in young people," the state says.

The lawsuit says Smoking Everywhere violated Oregon's Unlawful Trade Practices Act.

In addition to injunctive relief, the state is seeking civil penalties of up to $25,000 for each UTPA violation, as well as attorney fees and costs. Each product misrepresentation constitutes a separate infraction, it says.

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The state is represented by Senior Assistant Attorneys General David A. Hart and Merrill A. Maiano in Salem, Ore.