A Canadian health group says major vape product manufacturers have dramatically slashed their prices, and are worried B.C.’s plans to raise taxes on those products won’t be enough to curb youth vaping.
Physicians for a Smoke Free Canada (PSFC), a group of lung health advocates based in Ottawa, recently looked at the prices of some vape “starter kits” sold in convenience stores and online.
They found three of those manufacturers, including Juul, have lowered their prices from 33 per cent to 75 per cent in recent months.
“It’s a concern, because the lower the price, the higher the demand,” said Dr. Stuart Kriesman, a member of PSFC.
The group found Juul’s starter kit is now retailing at $29.99 in some Canadian stores. When it was introduced to the market in August 2018, it had a retail price 54 per cent higher, at $64.99.
Other products have seen similar drops since their own launches. Japan Tobacco’s Logic Compact kit started selling in February 2018 at $19.99, but has since fallen 45 per cent to $10.99.
The sharpest decline was for British American Tobacco’s Vype ePod. When it hit the market in January of this year, it was selling for $40. Now, it’s for sale in some stores for just $10, including tax.
Kriesman says with prices this low, young smokers can’t help but be attracted to these products.
He thinks the manufacturers know this, too.
“The hypothesis is they’re intentionally taking a loss in order to build their market, and specifically the youth market,” he said.
In a statement, Japan Tobacco International Canada said retailers set their own prices based on the manufacturer’s recommendation, and that there is a “wide variety of pricing” in the vaping product market.
“Whatever the price, it remains critical that youth do not have access to vape products,” a spokesperson said, “which is why we support rigorous age verification, health warnings, clear ingredient and nicotine disclosure and the existing ban on the use of advertising, images and flavours that appeal to youth.”
Not all store owners are taking the bait on lower prices. Sherman Brown, who runs the VaperDome in Coquitlam, sets higher prices and also asks customers for ID.
He says the less expensive products can be problematic.
“It brings up other health concerns, because you’re buying cheaper products, you’re also inhaling off of cheaper quality materials,” he said.
The B.C. government is hoping to make vaping more restrictive to youth by increasing the provincial sales tax on products from seven to 20 per cent.
The plan, released by the ministries of finance, health and education, will require legislation to enact and would take effect Jan. 1, 2020.
If passed, it would be the first tax hike of its kind in Canada.
But Kriesman says the plan won’t be enough to make prices out of reach, particularly if manufacturers keep lowering their prices.
Under the tax increase, a Juul nicotine cartridge that sells for $5.88 with the seven per cent tax would rise to $6.56 — hardly keeping it out of the hands of youth.
The $10 Vype starter kit would rise to $12.
When asked if the province would consider setting a minimum price for vape products, a spokesperson said it’s up to the federal government to make that decision.
— With files from Nadia Stewart
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