LONDON, July 10 (Reuters) - Shopify ( SHOP ) has told
customers using its web-hosting services to remove vape products
from their online stores, according to a notice seen by Reuters
and confirmed by the company on Friday.
Reuters reported in June that the Ottawa-based company, which
provides the infrastructure that enables millions of merchants
to run and scale e-commerce businesses, was planning the move
after pressure from a coalition of U.S. state and city law
enforcement authorities over widespread sales of illegal vapes
through websites hosted on Shopify's ( SHOP ) platform.
Shopify's ( SHOP ) new policy, however, applies to all vape
products.
"Due to changes in legal restrictions on the sale of
Electronic Nicotine Delivery Systems (ENDS), Shopify ( SHOP ) no longer
supports the sale of these products," the June 24 notice said,
instructing merchants to remove all e-cigarette products by July
8 or risk product suspension or store termination.
Shopify ( SHOP ) confirmed the notice was authentic, but did not
comment further. Earlier in June, the company told Reuters it
prohibited illegal activity and that enforcement decisions were
based on its assessment of legal requirements across
jurisdictions.
The move follows pressure from attorneys general from states
including California, Illinois and Arizona, as well as
authorities in the City of New York, the District of Columbia
and Puerto Rico. The same coalition has also pushed for policy
changes at other companies, including Mastercard.
"This change will help significantly reduce the sale of illegal
nicotine products. We will continue to hold companies
accountable and protect public health," California Attorney
General Rob Bonta said. Bonta led the coalition alongside the
City of New York.
A spokesperson for Bonta told Reuters that Shopify's ( SHOP )
decision applies globally.