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Licensing scheme could ban legitimate shops from selling vapes, warns ACS

Retailers have also expressed concern at the potential scheme

A licensing scheme for stores selling vapes, which has been proposed in the republished Tobacco & Vapes Bill, may impose a limit on the number of convenience stores in an area that can sell vape products, the ACS has warned.

The scheme “includes the potential to limit the number of businesses in an area based on their proximity to other retailers in the area as well as other conditions determined by local authorities”, said the ACS. These restrictions could prevent some responsible retailers from selling vape products at all.

ACS chief executive James Lowman has called for “detailed consultation with local shops and other stakeholders” to prevent legitimate sellers being locked out of the important category.

He said: “We now need proper discussion of the detail as regulations are drafted, or we fear that this legislation will significantly impact investment, growth and service provision in our sector.

“Unless properly structured, the licensing scheme could also prevent legitimate traders from operating based on the presence of other outlets in the area, or the specifics of where that store is located.”

Retailers have also expressed concerns about a licensing scheme, with Maqsood Akhtar, owner of Blackthorn Newsagents in Rotherham, warning that it “may be an extra cost to the retailer”, adding that “responsible retailers are being punished”.

Within the Bill, details of the licensing scheme include the possibility that “regulations may authorise a licensing authority to charge a fee in respect of an application for the grant of a licence”. It also specifies that a provision of a Bill may “enable a licensing authority to attach conditions to a licence”.

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Akhtar continued: “It could be in addition to what we already have to bear. We’d probably have to apply and meet certain criteria, then pay a price for it. If it’s a case of fulfilling certain criteria and being given it, that’s great, or even paying a one-off small price.”

He added that if the licence scheme involves renewing at a cost, “that’s another thing”, with the Bill stating that “the regulations may make provision about the duration, renewal, variation, suspension or revocation of licences”.

“I am supportive of it, but licensing will not stop illicit trade,” he continued. “Products having an ECID number hasn’t stopped the illicit trade, so what good will a licence do? It will carry on, some may even sell dodgy vapes to afford the scheme and its renewal. I’d say 95% of us retailers across the country are responsible, but because of that 5-10% we’ll all get hit.”

Retailers suggest alternatives to the licensing system could prove more effective

Akhtar said instead of a licence scheme, there should be a “strike system”.

“I saw Retail Express and JTI’s recent investigation of the illicit vape and tobacco market, and I say these retailers should have their keys taken – shut down the store’s location, not their name. If you shut down a store under a name, another one can pop up under a new name.”

Meanwhile, Julie Kaur, of Jules Convenience in Telford, Shropshire, told Better Retailing that a licensing scheme will be beneficial only if “independent stores are given an advantage”.

“We should get the licence scheme for free for five years, and then after a review those that have been trading illicitly should be charged. We as indies need someone lobbying the government to support small shops, the big shops make more than us.

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“We were so good during Covid, and we’ve since been hit by a vaping ban, plus previously having the tobacco display ban and a sugar tax. If they want us to close, they should just tell us to. We’re providing a lot for local communities. We deserve the scheme for free or at a reduced rate.”

However, Abdul Arain, of Al-Amin Stores in Cambridge, does not sell vaping or tobacco products, and thinks the scheme is a “positive” step. He believes it will “help the population move away from products that only damage health”.

Jet Sunner, of Michael’s Supermarket in Billesley, Birmingham, said the scheme is a “very good idea”, but the government should also implement “a similar track and trace system to cigarettes”.

“The scheme could get rid of the riff raff – the rogue traders – and get some regulation in. I presume the licence scheme will be the same as the cigarette one, where you don’t have to pay, but it may be different. Even if we are charged for a vaping licensing scheme, I still think that’s a good idea, as long as it’s a not stupid price, but something like £20 a year.”

He added that the “more people” the government consult “the worse it gets, because everyone gives their views and ideas”.  

“They need to look at the ultimate goal: get rid of illegal vapes. The ones any Tom, Dick and Harry are selling. Register a licence scheme and set up a similar track and trace system to cigarettes.”

Retailers to make ‘significant changes’

Other measures in the Bill include a ban on vape advertising and sponsorship, as well as powers to restrict the flavours, display and packaging of all types of vapes, as well as other nicotine products. A ban on the sale and manufacturing of snus has also been levied.   

Lowman added that the Bill will “require retailers to make significant changes in their businesses, both on age restricted sales processes and the way that their stores are stocked and managed”.

“It is essential that the government provides retailers with clear guidance on the rules, and communicates the changes not just with retailers, but with the public as well,” he said.

“The introduction of £200 fines to act as a deterrent for retailers selling products to underage customers is welcome, but we are concerned that there is not enough enforcement right now to deal with the rogue operators in the tobacco and vaping market. Trading standards need significantly more funding to be able to make a difference through targeted local enforcement, not just against those selling to young people, but also those who sell illicit products.”

Read more Tobacco & Vapes Bill news

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