I opened two ecig shops about 5 years ago. Early on people would come in and hug me for changing their lives. Today it seems like there's a shop on every corner.
We mix our own juices and have about 100 flavors. To register each one with the FDA would cost several fortunes, somewhere in the ballpark of $50 million. But that's just part of the story.
We sell 3 different bottle sizes and each size requires a separate FDA registration. Plus, we offer 5 different nicotine strengths and here again each strength would need it's own registration. The math gets a little mind blowing.
$50 million x 3 x 5 = 750 million
I take special care to ensure each product we sell is high quality. Customers both appreciate and reward us for taking that special care and tell us we have the best juices in Austin. But no good deed goes unpunished with the U.S. government.
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Operation Choke Point has been in operation since 2013 with the stated intention of combating fraud and money laundering. In reality it is nothing but raw abuse of power. Perfectly legal businesses such as mine were placed on the list of "undesirables" and targeted for extinction by the Obama administration. The reason - they just don't like us.
Here's how it works. All banks are under FDIC control as well as Dodd/Frank. And all credit card merchant accounts are underwritten by a bank somewhere in the U.S. The Justice Department contacted these banks with the list of undesirable companies such as ecigs, firearms, payday loans, and dating services. Overnight our credit card merchant accounts were yanked. My ability to sell online or take credit cards in my stores came to a screeching halt.
Some business had their bank accounts closed and their outstanding loans called. Did I mention these are all perfectly legal businesses?
Rep. Sean Duffy (R-WI), a congressional opponent of Operation Choke Point, states, “This is the greatest abuse of power that no one is talking about. You’ve got vigilante bureaucrats taking down lawful businesses without any due process simply because they don’t like them."
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Ever seen those nasty little egics for sale in convenience stores? They are low quality, overpriced, and just happen to be owned by big tobacco companies.
Want to take a guess which products are exempt from the new FDA regulations? Follow the money.