Relating to a prohibition on marketing, advertising, offering for sale, or selling certain e-cigarette products; increasing a criminal penalty; creating a criminal offense.

Contracts

Existing supply agreements are insufficient. You must immediately amend Master Service Agreements (MSAs) with all hardware and e-liquid vendors to include:

• Origin Warranty: A clause explicitly warranting that *no component* of the product was manufactured in China or a designated foreign adversary.
• Criminal Indemnification: Language requiring vendors to cover legal defense costs and criminal fines resulting from false claims regarding country of origin.
• Buy-Back Provisions: Terms requiring vendors to repurchase inventory that becomes legally unsellable on September 1, 2025.

Hiring/Training

• Personal Liability Training: Store managers and purchasing agents must be trained that violations are criminal offenses, not civil infractions. Individual employees can be arrested.
• Visual Inspection Protocols: Staff must be trained to identify and reject prohibited form factors (devices resembling school supplies, toys, or electronics) and prohibited imagery (cartoons) upon delivery.

Reporting & Record-Keeping

• Certificates of Origin: You must obtain and file a Certificate of Origin for every SKU in your inventory. This document must trace manufacturing locations for both final assembly and internal components.
• Ingredient Verification: Maintain lab reports confirming products do not contain prohibited substances (cannabinoids, kratom, kava, etc.) if the packaging is ambiguous.

Fees & Costs

• Inventory Liquidation: Expect a high cost impact regarding the write-off of Chinese-manufactured hardware, which currently dominates the global market.
• Legal Defense Reserves: Retainers for criminal defense counsel should be reviewed, as standard General Liability insurance policies typically exclude coverage for criminal acts.