Norway has implemented a ban on cross-border online sales of nicotine and tobacco products, meaning any orders of these products from an online shop in another country that gets delivered to Norway can be stopped and seized by customs. This ban does not apply to online sales within Norway and has been put in place as part of Norway’s tobacco control policy, with a particular objective to address youth access to nicotine products.
In support of the ban, Markus Lindblad, Head of Legal and External Affairs at Northerner, explains why the UK should follow suit.
The nicotine product market has evolved rapidly over recent years, with innovative new products such as nicotine pouches and vapes becoming an increasingly popular alternative to cigarettes. As governments have acted independently to regulate these new products, the outcome has been a disparate collection of laws and regulations pulling in different directions.
The policy objectives of different countries, and the means they use to achieve these objectives, differ considerably. For example, in some countries, such as Sweden and Finland, nicotine pouches are widely available, while others, such as Belgium and the Netherlands, have imposed total sales bans.
This fragmented regulation is an issue, especially for online sales of nicotine products. Although some countries may introduce higher taxes on specific products, or limit nicotine levels, or indeed ban them entirely, these products are still just a click away from an online store in another country. Therefore, consumers are strongly incentivised to shop across borders. This undermines the ability of governments to implement their tobacco and public policies effectively and creates unfair competition across different countries.
Why a ban on cross-border online sales of tobacco and nicotine products could be attractive to UK policy makers:
- Enforces national policy: Prevents easy circumvention of UK regulations (like nicotine limits) through foreign online purchases, ensuring domestic laws, such as the Tobacco and Vapes Bill, are effective.
- Reduces illicit trade/improves safety: A ban prevents international alternatives, which may not meet UK safety and quality standards, less appealing, helping protect consumers.
- Secures tax revenue: Ensures tax revenues remain in the UK where consumption occurs, preventing unnecessary economic loss.
- Protects UK businesses: Shields compliant, tax-paying UK retailers from unfair competition from foreign online sellers who may not adhere to the same standards or face the same operating costs.
Further to this, the Tobacco and Vapes Bill is expected to become law later this year, introducing a new framework for the regulation of tobacco and nicotine products that will help prevent youth access and regulate novel nicotine products. However, its positive effects could be undermined if consumers choose to buy online from retailers based overseas. This is where a cross-border online sales ban could play a role in safeguarding the public health objectives of legislation such as the Tobacco and Vapes Bill.
While cross-border online sales of tobacco and nicotine products represent a challenge, a well-regulated domestic online sales market can be a powerful tool for the UK government to achieve its tobacco and health policy goals.
Well-regulated Domestic Online Sales Offer Several Benefits:
- Strict Age-Gating: Online sales make it possible to use technology to create strict barriers to underage sales.
- Better Consumer Information: Online processes ensure consumers receive accurate product information, health warnings, and ingredient lists (something impossible to guarantee in unregulated sales or brick-and-mortar stores).
- Safer and Sustainable: Well-regulated digital sales can help ensure consumers access only legally authorised products that meet national standards.
If the UK government chooses to, it can follow Norway’s example and implement a similar ban. A ban on cross-border online sales of tobacco and nicotine products would strengthen the government’s capacity to deliver tobacco control and public health strategies, help protect consumers, and reduce the risks of youth access. Such a ban would be a logical accompaniment to the Tobacco and Vapes Bill.