The Federal Court of Australia has ordered- external site Vapor Kings Pty Ltd to pay $4.9 million for unlawfully advertising nicotine vaping products (NVPs), in breach of the Therapeutic Goods Act 1989.
The court has also ordered the director of Vapor Kings Amir Kandakji, to pay $100,000 in penalties for failing to prevent Vapor Kings’ breaches of the Act. Of this amount $35,000 is to be paid to the Commonwealth with the remaining $65,000 to be suspended on the condition that Kandakji complies with an injunction.
Nicotine vaping products are prescription-only medicines and it is generally unlawful to advertise them to the public.
Despite being warned about alleged unlawful advertising, the company and Kandakji continued to advertise and sell the products for some months.
"There is the significant risk of harm arising from the use of NVPs and found that the contraventions are serious which involve numerous breaches of s 42DLB of the Therapeutic Goods Act" Anthony Lawler, deputy secretary of health products regulation and head of the Therapeutic Goods Administration (TGA) at the Department of Health and Aged Care, said at court
"The TGA is working with state and territory regulators and other federal agencies as part of strong action to combat the unlawful advertising, import and supply of vaping products.
"I encourage people to report illegal or questionable practices to the TGA or their local health authority."
Vapor Kings and Kandakji have also been ordered to pay the Department of Health and Aged Care’s costs relating to the court proceedings.
This case serves as a reminder to individuals and businesses that breaching the Act can have serious penalties including fines and civil or criminal court action.
The TGA granted a legal permission allowing only pharmacies and pharmacy marketing groups to advise where a person can fill their prescription for a nicotine vaping product, without mentioning specific brands or types of products. Other individuals and businesses, such as tobacconists, vape stores and convenience stores, are not permitted to advertise these products in any way.
This outcome follows over $694,000 in infringement notices recently issued to another group of companies for the alleged unlawful import or advertising of nicotine vaping products.
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