MADISON, Wis. — A new Wisconsin vape law is making its impact felt across the state as officials announced massive fines against multiple retailers, including one smoke shop that now owes nearly $13 million for allegedly selling products not authorized under the state’s restricted vape directory.
The enforcement effort marks one of the most aggressive regulatory crackdowns since the law took effect on Sept. 1, 2024.
A Sweeping Crackdown on Unauthorized Vape Sales
The state Department of Revenue (DOR) confirmed that Exclusive Tobacco, a four-store smoke shop chain with a location in Oshkosh, was issued fines twice in October after investigators determined the retailer was selling vape products outside Wisconsin’s approved list. The directory, which includes only 303 authorized items, limits sales to major brands such as Juul, Blu, Vuse, and Crossbar.
Following consumer complaints about the Oshkosh location, DOR inspectors conducted an in-person compliance check. What they found led to one of the largest single retail penalties in state history. Inspectors reported that Exclusive Tobacco not only carried unauthorized vape products, but also had been operating with an expired municipal license, prompting a full product seizure.
During the inspection, authorities confiscated 1,244 illegal vapes, triggering a fine of $1,000 per device under the new law. Because the items remained on the shelves for 10 days after the state issued a warning, the daily fines accumulated, resulting in a staggering total of $12,440,000 owed to the state.
Second Inspection Leads to Additional Penalties
Despite the initial enforcement, officials say that Exclusive Tobacco continued selling non-compliant items. A second inspection led to another round of citations, this time totaling roughly $431,000, bringing the business’s total penalties to nearly $13 million.
A second retailer, Dave’z Smoke N Vape LLC in Green Bay, was also fined $450,000 after being found in violation of both product rules and licensing requirements. Neither business responded to media outlets seeking comment.
In total, DOR reports issuing 42 orders to remove illegal products, 27 seizures, and multiple warnings to retailers statewide. Officials note that the expired licenses did not affect fine amounts; instead, the penalties were tied solely to the sale of vape products not listed on Wisconsin’s approved directory.
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Retailers Struggle as Appeals Case Moves Forward
While some shops quickly removed unapproved inventory and began relying more heavily on other product categories, others have struggled to survive the new regulations. The owner of a vape shop in Antigo, where 90% of sales were tied to vape products, said the new law forced him to shut down.
“We had six employees, and every one of them lost his job,” he said, adding that he is now stuck with $40,000 in unsellable inventory.
Industry groups argue that the law unfairly benefits major tobacco companies, pointing to lobbying efforts recorded in 2023. Wisconsin store owners also note that similar regulations in other states have seen mixed results: Iowa’s vape directory law was blocked by a federal court, while Utah’s was upheld earlier this year.
The organization Wisconsinites for Alternatives to Smoking and Tobacco (WiscoFAST) has appealed the Wisconsin law, and the 7th Circuit Court of Appeals heard arguments on Dec. 10. A ruling is expected in late January.
Questions Remain About Public Health Impact
Public health advocates have raised concerns that restricting only some vape products may not go far enough to curb youth access or reduce nicotine addiction. Meanwhile, state officials defend the law as a necessary “measured approach” to an exploding industry.
Milwaukee-area retailers told reporters that hemp-based products have helped offset financial losses so far, but many fear additional regulations — or federal changes — could soon eliminate those items as well.
For now, business owners are watching the appeals process closely. Even if the court strikes down the law, some shops say the damage is already done.
What do you think about Wisconsin’s strict vape enforcement? Share your thoughts in the comments — how should states balance public safety with business survival?
