The ACS has slammed government regulations outlining its plans to ban disposable vapes, stressing the huge financial impact it will have on retailers.
The regulations, published this week, confirmed the implementation date as 1 April 2025.
Its impact assessment found the cost of the ban was estimated to be over £1bn per year for a several years, with a total estimated financial impact of more than £9bn.
The vast majority of that impact is calculated to be the loss of profits by retailers who currently sell disposable vapes, with an average 24% margin.
ACS stressed, however, that this was a not an accurate representation, with the figure actually closer to 45%, undermining the financial impact it will have on convenience stores.
The trade body said government was also “naïve” to underestimate the effect on illicit trade post-ban.
It carried out research, in partnership with Yonder, and found 24% of existing vape users intended to continue using disposables – meaning the illicit trade will be the only place where they will be able to get those products.
The illicit market already accounts for around a third of disposable vapes used in the UK. After a ban, ACS said “there is likely to be a significant increase for the rogue sellers that will have no qualms about selling illegal, dangerous product to both adults and children”.
Further detail on how the government is planning to tackle illicit trade is not provided.
“The government is at best being incredibly naïve about what is going to happen after the disposable vapes ban comes into force, convincing themselves that banning something will mean it ceases to exist,” said ACS CEO James Lowman.
“There are a wide range of fundamental problems with the impact assessment, chief of which is a drastic underestimation of the financial impact of a disposable vapes ban on retailers. Using the overall turnover figure for retail businesses to calculate the profit loss of a ban on disposables marks a complete failure in understanding the category.
“The impact assessment also incorrectly refers to out of date waste electrical and electronic equipment regulations and thresholds on vape recycling that already changed in January this year. Given that these are regulations based on environmental concerns, it would seem important to be able to make an assessment that is accurate based on rules that are in force already to increase recycling rates of vapes.
“There is nothing in the regulations or the impact assessment that will deter criminals and rogue traders, who will carry on regardless. To pretend that this will do anything but boost the illicit trade is fantasy policymaking.”
A detailed definition of what a disposable vape is, in terms of the features of the product, has yet to be distinguished.
The regulations extend to England and Wales, but currently only apply to England. The Welsh government is yet to set out its approach on the ban.
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