Washington D.C. AG Schwalb Announces Zyn Manufacturer Will Pay $1.2 Million In Fines
SMNA will also be required to monitor its distributors
Attorney General Brian L. Schwalb today announced that the makers of Zyn nicotine pouches will pay $1.2 million to resolve allegations that the company facilitated the sale of tens of thousands of flavored products in DC in violation of the District’s 2022 ban on flavored tobacco and nicotine products. After the Office of the Attorney General (OAG) opened an investigation, Swedish Match North America LLC (SMNA), a subsidiary of Phillip Morris International, quickly halted nationwide sales of its products from its website, shop.zyn.com. Now, as part of the settlement agreement with OAG, SMNA will also be required to monitor its distributors and take affirmative steps to ensure they comply with the District’s ban on flavored tobacco products.
“Flavored tobacco products like Zyn pouches are banned in the District precisely because they are dangerous, addictive, and threaten to reverse the enormous progress we’ve made in reducing tobacco use amongst young people,” said Attorney General Schwalb. “Manufacturers, distributors, and retailers should be on notice that my office is aggressively enforcing this ban and will always step in to safeguard our children’s health and safety.”
Zyn is a small pouch that contains tobacco-derived nicotine, an addictive chemical. Users tuck the pouches inside their lips or cheeks, and the pouches deliver nicotine orally. Zyn comes in multiple flavors, including mint, citrus, and coffee and is packaged for sale in a colorful round tin.
Sales of nicotine pouch products, including Zyn, have increased dramatically in the US in recent years, despite established health risks, including addiction and risks to cardiovascular and oral health. Growing use by young people has also sparked concern, and 2024 data from the CDC indicates that 3.5%—about 890,000—of all US middle school and high school students report having used nicotine pouches. This includes 1.8% of kids in grades 6, 7, and 8.
In 2024, OAG opened an investigation into whether sales of flavored Zyn products violated the District’s ban on flavored tobacco and nicotine products. The investigation uncovered evidence indicating that from October 1, 2022 (when the flavor ban was enacted) until June 30, 2024, SMNA facilitated the sale of tens of thousands of flavored tobacco products to DC consumers through its website shop.zyn.com, in violation of the ban and of the District’s Consumer Protection Procedures Act (CPPA).
After OAG issued an investigative subpoena, SMNA took action to stop the sale of flavored tobacco products in the District, including by halting all sales of Zyn products on shop.zyn.com. SMNA cooperated fully with the District’s investigation. Now, under the terms of a settlement agreement that resolves the investigation, SMNA must:
- Pay $1.2 million to the District.
- Monitor Zyn distributors and take steps to ensure compliance with DC’s flavor ban. SMNA will be required to monitor distributor compliance with DC’s flavor ban on a quarterly basis. If SMNA identifies sales of flavored tobacco products to DC retailers or consumers, it will take affirmative steps to end those sales and notify OAG. If a distributor demonstrates a pattern of three or more violations of the flavor ban in a calendar year, or five violations in the aggregate, SMNA must take reasonable steps to ensure compliance, up to and including exercising its right to terminate its relationship with that distributor.
- Send annual compliance reminders to DC distributors and retailers. Each year, SMNA will send communications to its distributors and retailers notifying them of DC’s flavor ban and reminding them to comply with all applicable federal and local laws.
- Prohibit the future sale of flavored tobacco products in DC through shop.zyn.com or any other e-commerce shop associated with zyn.com.
A copy of the settlement is available here.
This matter was handled by Assistant Attorney General Meryl D. Grenadier and former Assistant Attorney General Anna Rosenfeld, under the supervision of Deputy Director of the Office of Consumer Protection Kevin Vermillion, and Director of the Office of Consumer Protection Adam Teitelbaum.
Source: Office of the Attorney General of D.C.
