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How Will the Pact Act Affect the CBD Industry?

The hemp market is constantly evolving, always developing new ways to deliver the highest-quality CBD into the hands of customers in a way that’s not only safe and effective, but compliant with the law.  If you have been paying attention to news in the hemp world lately, you may have heard about the Pact Act.  This is one evolution of the hemp industry that, quite understandably, has gotten many CBD-based brands, and their customers, feeling wary of the future.  The Pact Act is more commonly known as the “Vape Mail Ban”.  No matter the name, it has left hemp businesses that operate online wondering exactly what the future may hold.

We’re going to explain everything that you need to know about what this act entails.  Not only that, but what it can mean for the future of all vaping goods in general.

What is the Pact Act?

The Pact Act stands for “Prevent All Cigarette Trafficking,” which can be a bit misleading since it seemingly applies not only to nicotine-based vaping goods, which are not technically cigarettes, but all vaping products on the market.  You may remember that at the end of 2020, there was much discussion about the Covid Relief Bill.  This piece of legislation took quite some time to pass in Congress before finally being enacted back on December 27th.  What the vaping industry didn’t know at the time was that within the Covid Relief Bill was the Pact Act.  Although totally unrelated to Covid relief, it had been in the making for quite some time.

The Pact Act, according to lawmakers, was developed as a means to further prevent vaping products from getting into the hands of minors.  Its main stipulations are that all manufacturers of vaping products register themselves with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  This is to adhere to regulations, put forth onto companies that solely sell tobacco goods.  The act contained an amendment that went further to prohibit vaping products from being sent through the United States Post Office.  Of course, USPS is a government-owned and regulated industry that is ultimately controlled by United States lawmakers.

This law doesn’t prohibit USPS from shipping vaping products from manufacturers to businesses.  Meaning, the law does not affect one’s ability to buy vaping products in physical store locations.  However, the majority of vapers do purchase their goods online.  Not only because of convenience, but the wider selection of products, better prices, and the fact that it’s easier to verify the quality of a vaping product when a customer can visit a company’s website.

What Does the Pact Act Mean for Vaping Companies?

Once the Pact Act was passed, it did not take long for UPS and FedEx to follow suit.  Both shipping companies announced that they, too, would be banning the transporting of vaping products from business to consumer in the coming months.  This, understandably, poses a huge issue for companies that rely on online sales directly to customers.  As a direct result of the Pact Act, and the subsequent responses from both UPS and FedEx, vaping companies now have two options.

  • Option #1: Stop selling online altogether.
  • Option #2: Arrange deals with logistics companies that are still willing to ship vaping products across the country.

Problem with the second option is that these alternative shopping companies are more expensive.  So, what does this mean?  Well, basically,  either the business itself or the consumer will end up having to make up the difference.

What Does the Pact Act Mean for CBD Companies?

Within the literature of the Pact Act, there is no clear differentiation between nicotine-based vaping products and vaping products that are made with hemp compounds.  The wording is quite general, stating that any and all vaping products are subjected to the same restrictions.  What this means is that companies that sell CBD-based vaping products are now in the same boat as other vaping companies.  They must scramble to figure out how to maintain their businesses online; selling directly to customers.

How the Pact Act Affects Vapers and CBD Enthusiasts

If customers are unable to purchase vaping goods online, whether those products contain nicotine or hemp extracts, then they will have no choice but to shop for them in person, but this is quite limiting.  Brick-and-mortar stores do not have the wide selections that a person can find online.  Again, also verifying the quality can be quite hard without the presence of lab reports.  That, coupled with information provided by a company about how their products are manufactured.  Therefore, the large majority of  consumers will no longer be able to enjoy their favorite products.  Consumers will simply be at the mercy of local stores who may or may not stock products that customers prefer.

On a larger scale, since online revenue is the sole source of income for many of these manufacturers, a vast array of our favorite businesses may have no choice but to shut their proverbial doors.  This will all result in a market that caters less to the unique needs of individual vaping enthusiasts.

What the Future Holds for Vaping and CBD Companies

The Pact Act is now in effect.  As we speak. vaping companies from all over the country are working hard to figure out their next moves.  Best-case scenario as it stands is that our favorite manufacturers find alternative shipping sources.  These hopefully do not accompany substantially higher costs.  Businesses need to essentially operate as they always have been.  However, the true long-term effects of this new piece of legislation remains to be seen.  We will have a clearer idea of its impact on the vaping industry at large in the months ahead.  Until then, continue to support your favorite online businesses as much as you can.  Also, be patient as they transition into these new and unforeseen challenges.

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