Today the Erie Vapor Cabana Lounge announced that they will be shutting down shop following a recent bill that has gone into effect.
Governor Josh Shapiro had signed House Bill 1425 in December 2025. This is a state law that focusses on the regulation, licensing, and possible costs associated with tobacco products. This was Act 57 of 2025.
Two major changes were slated to begin 60 days after the Bill was signed. These changes will affect several businesses that operate businesses that sell tobacco or nicotine products.
The first change includes a price increase to the “Cost of the Retailers.” This means that under this current law all retailers who sell cigarettes will be required to pay their basic costs plus the cost of selling the product or doing business. On March 1 the expected cost for cigarette retailers raised from 7% to 8.5%. It is expected that by March 2027 the cost will increase to 9.5%.
Retailers can provide evidence that proves that the cost of selling is below the governing rate. If approved the rate will be effective for 12 months before the retailer will have to provide evidence again otherwise the governing rate will return.
Those purchasing cigarettes from retail manufacturers directly will be subject to all updated provisions as a stamping agent, wholesaler, and retailer.
The second change went into effect on Feb. 20 and affects Electronic Nicotine Delivery Systems (ENDS) by instating a state-maintained directory that will identify approved nicotine vapor products and manufacturers.
Businesses that sell electronic cigarettes that contain nicotine that are sold for retail within Pennsylvania must be directly certified by the Attorney General by April 21 and each year following.
Manufacturers of these products will need to obtain a tobacco manufacturer license and a tobacco wholesaler license to sell to other licensed retailers.
Products that are not on the directory will be seized on Oct. 18 by the Commonwealth.
A directory of approved ENDS will be released publicly on June 20 and will be published here. This will be updated monthly.
The following penalties will be implemented to those who sell or offer e-cigarettes that contain nicotine without being approved in the directory:
A civil penalty of $500 for each product offered for sale until the product is removed or is properly listed on the directory.
A second violation within a 12-month period will result in a civil penalty of at least $750 to $1,000 per day per product, and the license of the licensee will be suspended for at least 14 days.
A third violation within a 12-month period will result in a civil penalty of at least $1,000 but not more than $1,500 per day per product, and the license of the licensee shall be revoked.
Violators will be responsible for the costs, which can be greater than the civil penalty, for the destruction of seized products.