July 1, 2016

Judge Rules Indiana's E-Liquid Regulations Constitutional

Indiana’s new e-liquids regulations will go into effect July 1. - stock photo

Indiana’s new e-liquids regulations will go into effect July 1.

stock photo

Indiana’s new e-liquids regulations will go into effect July 1 after a federal judge upheld the law Thursday.

Though challenged in court by several Indiana vaping companies, both a local judge and federal Judge Sarah Evans Barker ruled the law constitutional.

Andy Shatara, owner of Vapor World in Indianapolis, says the law will make e-cigarette and vape businesses in Indiana less competitive.

“Essentially what’s going to happen is that now I’m going to be limited on who I can purchase my e-liquid from to sell to my customers,” Shatara says. “My competitive edge of carrying different things and always being able to shift and change inventory according to the demand is going to go away.”

The judge sided with the state and denied the plaintiffs’ motion for an injunction and motion for summary judgment.

The law regulates the sale of e-liquids. It forces vape shops to purchase it from manufacturers that fit the standards set by the law.

Opponents of the bill argued that the legislation will not only kill competition, but also make it nearly impossible to find a manufacturer.

According to Shatara, now every vape shop will end up selling the same e-liquid from the same four manufacturers.

Despite the hurdles, Shatara still believes that Vapor World will be able to remain competitive.

“You’re going to have to do extremely well on customer service,” he says. “Be very competitive in pricing as far as hardware goes.”

He predicts that because there are less options for “juice,” prices will increase by 15 to 30 percent. He hopes that more aggressive marketing will continue to bring old, and new customers into the store.

Shantara says even though the regulations will make the vape business more difficult to operate in Indiana, he has no plans to leave.

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