Rules released by the FDA on May 5th are devastating to small electronic cigarette manufacturers. Small businesses are important to the American way of life. It’s evident how destructive these FDA guidelines will be when you look at entrepreneurs in Indiana.
- Why are Small Businesses Important in the United States?
- Frustrating New FDA Guidelines: Impact in Indiana
- Make the Switch
New rules have been passed by the US Food and Drug Administration (FDA) that will effectively gradually ban vaping through expensive product clearing with the agency. Even if you don’t agree with the sound evidence that it’s irresponsible to lump vaping in with smoking, one thing is certain: these regulations are favorable toward big tobacco and unfavorable toward small vaping companies. Small electronic cigarette manufacturers and shops will be driven out of business. Let’s look at why it’s important that laws not be instated that make it harder for small businesses to compete and then review the scientifically unjustifiable FDA regulations themselves.
Why are Small Businesses Important in the United States?
Many people want to get ahead through entrepreneurial means – by starting their own small business. Sure, there’s a part of it that isn’t as romantic: people are trying to make money and beat out their rivals. But small business owners are fulfilling the American dream. Let’s look specifically at three reasons why small business is generally important:
- Top Job Creator in the Country
“Small businesses represent 99.7 percent of all employer firms, employ half of all private sector employees and pay 45 percent of total U.S. private payroll,” notes the National Federation of Independent Business (NFIB). “Small business has generated 60 to 80 percent of net new jobs annually over the last decade.”
- Small business’s impact on politics
An above-average portion of small-business owners, 95%, are registered voters. 84% say they vote in most elections.
- Effect on the community
Do you think business owners are detached? Well, that’s not true of most small business owners. Nine in ten either give money, in-kind donations, or volunteer for a charity in their local area. The total charitable giving by small business annually is $40 billion, says the NFIB.
Frustrating New FDA Guidelines: Impact in Indiana
Electronic cigarette store owners have been hit with a barrage of politically motivated regulatory changes lately. There is an Indiana law (similar to ones popping up in other states), not yet put into place, that hinders what e-cigarettes shop owners will be able to sell. To make matters worse, FDA rules now make it possible that there won’t be any products to sell at all. FDA rules make it unlawful to sell these devices to minors, which is a debatable issue since many e-liquids don’t contain nicotine. The really devastating aspect of the regulations, though, is that they also require all new devices, along with ones released in February 2007 or after, to go through long approval processes costing (in total expenses) more than $1 million per vaporizer or e-cigarette. “It’s the final coffin nail,” explains Hoosier Vapers Chairman Evan McMahon. “Everybody universally understands that this is not a regulation. This is a prohibition.” There are about 200 to 250 vaporizer and e-cigarette realty stores in Indiana, many of which are small, family-run establishments. It’s common for small shops to make their own e-liquids, some of which contain nicotine and some of which don’t. That won’t be possible anymore under these new laws. The industry has sued to overthrow the law in Indiana; but most shops won’t be able to handle the FDA rules anyway, once they’re fully in effect in 2018. “I don’t normally give recommendations to businesses, but I’m making one now,” McMahon says. “When your lease runs out, don’t renew.” David Cohn, who owns Irvington-based World of Vapor Indy, planned to remain open via an exception in the state law that allows you to stay open if you have a contract with a security firm meeting particular parameters. However, the FDA rules make staying in business borderline impossible. Again, the approval processes for devices is estimated at more than $1 million per product (by the American Vaping Association). Cohn says he will probably stay open until 2018. That’s probably the end, though. “I had plans on expanding and opening up more stores and hiring more people,” he says. “I don’t think that’s a realistic goal at this point.” Mark Davidson, owner of Shelbyville’s Red Crane Vapors, says he’s upset both because his shop is how he makes a living and because he used vaping to quit smoking. In 2012, he quit after more than two decades as a smoker. He doesn’t believe he could have done it without e-cigarettes. There are numerous studies showing that these products are not the dangerous device the federal government and media reports are making them out to be – prompting the United Kingdom to offer them as a tool to quit smoking.
Make the Switch
Are you interested in quitting smoking with vaping? Use this safe and effective cessation method while you still can. Our Ecig Starter Kits come in all different sizes and finishes to fit any personality. Make the switch.