Australia’s out-of-control vape blackmarket is a warning European countries must heed, harm reduction experts have said.
Since October, vapes can only legally be bought in Australia from a chemist following a consultation with a pharmacist. Disposable and flavoured vapes (except mint, menthol and tobacco) are also banned, taxes have risen, and nicotine strength is limited.
The government introduced the strict strategy with the aim of reducing the appeal of vaping to young people.
However, experts now say Australia’s strict regulatory approach to vaping has undermined public health by restricting smokers’ access to safer nicotine alternatives. They also highlight how it has pushed the market for vapes into the hands of dangerous criminal gangs.
‘A total disaster’
Dr James Martin of Melbourne’s Deakin University said that Australia’s ban on vapes has been a “total disaster,” according to European think tank EU Policies.
He said it’s been triggered by a combination of hiking cigarette prices and severely restricting vapes, which has led to people sourcing their products on the black market.
Martin said Australia’s only option for resolving the crisis it’s found itself in is to “legalise consumer vaping products.” He warned that “if we just keep making nicotine harder to get to,” consumers will inevitably turn to illegal products.
Meanwhile, harm reduction expert Dr Colin Mendelsohn has warned that over 90 per cent of Australian vapes now circulate illegally. There have been hundreds of violent attacks on tobacco and vape retailers across the country where criminal gangs have fought for control of the black market.
Black hole in tax revenue
Australia is also suffering from a black hole in its tax revenue. Its latest federal budget, released in March, reveals tobacco excise duty has nearly halved since 2019, with cumulative losses estimated to be A$10 billion (€5.6 billion) by 2029. The Australian media have said the shortfall is the unintended consequence of the country’s excessive vaping crackdown.
Australia’s experience from introducing tight regulations on nicotine alternatives is not isolated. Flavour bans in Quebec in Canada and California in the U.S. have sparked rapidly-expanding black markets, with over 60 per cent of Quebec’s vapers sourcing products illegally just one year after restrictions began.
Europe pushes ahead with bans
Despite this, Europe is pushing ahead with similar bans. Roughly half of the European Union (EU) member states have either imposed or are exploring bans on flavoured vapes despite evidence showing these measures are likely to increase smoking rates.
Meanwhile, at the EU-level, vaping products are expected to face new rules under the upcoming revisions of the Tobacco Products Directive and Tobacco Excise Directive.
In the Netherlands, which has already banned flavoured vapes, a recent survey shows 80 per cent of Dutch vapers now purchase their products from abroad and nearly 10 per cent have returned to smoking. Meanwhile just two per cent have limited themselves to the legal ‘tobacco’ flavour.
An expert paper published last month argues that Australia’s current strategy is mirroring many of the unintended consequences historically associated with drug prohibition, and calls for a move toward a more balanced regulatory approach.
