As you may have heard, a new Texas law is about to be rolled out (Senate Bill 97) that will mandate all businesses (online & retail), selling Electronic Cigarettes & Vape products, to have extra precautionary requirements if they plan on continuing sales to Texas residents. Beginning on October 1st, 2015, Online Retailers selling products such as E-Cigs, Vapor & E-Juice Products, and Tobacco & Cigars will require additional age certification prior to shipping out any products within this category.
Normally business owners would ask the question of “What will happen if I do not implement age verification on my online store”? The answer is simple, the state will penalize businesses for each transaction that is not properly verified prior to shipment. And further disciplinary actions will be taken for merchants who continue to operate without becoming compliant, including monthly database audits by the Texas Comptroller.
Penalties: Merchant can be prosecuted if they do not comply with the regulations. Selling these products to a minor can lead to a Class C Misdemeanor &/or a $500 Fine.
As we all know, it is not difficult to order anything online these days and in order to prevent underage consumer purchasing, additional requirements have been implemented.
Now you may be thinking, “I do not operate my business in Texas, so why should I care about these changes?”
Well, if you ever plan on selling, or continuing to sell, any Electronic Cigarettes & Vape products to a consumer in Texas, you too have guidelines to follow.
Out of State Retailers Selling and Shipping to Texas
- Must verify that the prospective purchaser is at least 18 years of age through a commercially available database regularly used for the purpose of age and identity verification.
- Must use a method of mailing or shipping that requires an adult signature
- Shipping Requirements for All Retailers Include shipping document that states:
“e-cigarette sales to individuals younger than the age prescribed by Section 161.082 are illegal under state law;
and e-cigarette sales are restricted to individuals who provide verifiable proof of age in accordance with
Section 161.453. E-CIGARETTES: TEXAS LAW PROHIBITS SHIPPING TO INDIVIDUALS YOUNGER THAN 18 YEARS OF AGE AND REQUIRES PAYMENT OF ALL APPLICABLE TAXES.”
Another question business owners are already asking include, “What do I need to do in order to stay compliant with the laws”?
The few ways to keep your business compliant is by 1) requesting a government-issued identification bearing a photograph of the prospective purchaser and stating the date of birth or age of the prospective purchaser OR 2) utilizing a commercially available database to cross-reference the prospective purchaser’s information to confirm the age. Unlike option #1, option #2 allows for an easier purchasing process for both the consumer and the business owner. More information regarding Age Verification Services for online vape and electronic cigarette stores can be found at www.bestratemerchantservice.com/age-verification or call an Account Expert at (866) 577-1593.
SECTION 36. Section 161.453
(2) makes a good faith effort to verify the
information contained in the certification provided by the
prospective purchaser under Subdivision (1) against a commercially
available database or obtains a photocopy or other image of a
government-issued identification bearing a photograph of the
prospective purchaser and stating the date of birth or age of the
prospective purchaser.
The Full Bill Can Be Seen Here: http://www.legis.state.tx.us/tlodocs/84R/billtext/html/SB00097I.htm
