Despite regulatory hurdles, sales of Zyn have soared in the US. Photo credit: Aphis Marta, CC4.0.
Philip Morris International’s subsidiary, Swedish Match North America (SMNA), agreed to pay US$1.2 million to settle allegations of violating Washington, D.C.'s flavored tobacco ban. The District's attorney general's office determined that SMNA enabled the sale of tens of thousands of flavored Zyn nicotine pouches to D.C. residents through online platforms between October 1, 2022, when the ban took effect, and June 30, 2024.
Following the settlement, PMI is required to enforce stricter oversight of its distributors, including quarterly compliance reviews. It must also halt the sale of flavored Zyn products through its official e-commerce site, Zyn.com, and affiliated online retailers. The company had already suspended these sales earlier in 2024 after receiving a subpoena from the attorney general.
Swedish Match has shifted its focus toward physical retail outlets, according to a PMI statement, as part of its compliance strategy.
Despite the regulatory hurdles, sales of Zyn have soared, reflecting a 41.1% growth in PMI's latest quarterly report. In response to increasing demand and reports of a black market for nicotine pouches, PMI has expanded production capacity in the US as part of its broader strategy to diversify beyond traditional cigarettes. This settlement underscores the growing regulatory attention on non-combustible nicotine products amid their rising consumer appeal.