Task Force Report Finds Rise in Illegal Tobacco Market in Massachusetts
BOSTON — State legislation that took aim at what tobacco products Massachusetts retailers can and cannot sell — and at what price — appears to be having unintended consequences, according to a new report.
Pointing to a recent report, the New England Convenience Store & Energy Marketers Association (NECSEMA) said that "Massachusetts' extreme tobacco taxes and sweeping flavor ban are fueling a booming illegal tobacco market, costing the state hundreds of millions in lost tax revenue while devastating law-abiding local retailers and flooding the state with uninspected and potentially harmful nicotine products."
It added that additional restrictions on legal tobacco product sales — namely nicotine-free generation proposals and adult-only store sales — will exacerbate the problem.
For example, according to the latest "Massachusetts Multi-Agency Illegal Tobacco Task Force Annual Report," vape seizures by the Massachusetts State Police increased nearly 21,000% in just one year, jumping from 1,326 units to 279,432 illegal products in fiscal year 2024.
"These numbers are absolutely staggering and prove what NECSEMA has warned from the start — Massachusetts has created the perfect environment for illegal smuggling," said Peter Brennan, executive director of NECSEMA. "Our members are losing customers to the illicit market every day, and the state is bleeding tax revenue because criminals are filling the void created by excessive taxes and product bans."
[Read more: Massachusetts Flavor Ban Fails to Move the Needle on Menthol Smoking Rates]
The Massachusetts ban on the sale of all flavored tobacco products — including menthol — went into effect on June 1, 2020, seven months after then-Gov. Charlie Baker signed the ban into law. His signature made Massachusetts the first in the country to enact a ban statewide.
Despite increased enforcement, the illicit market is costing Massachusetts, which has lost nearly $240 million in excise tax revenue since 2018, NECSEMA added.
"This report is also clear evidence of just how misguided additional prohibitions would be," Brennan said. "Ideas like creating a so-called nicotine-free generation or limiting sales of nicotine products to adult-only stores will only make a bad situation worse — driving even more consumers to illegal sellers, costing even more tax revenue and putting even more pressure on our small businesses."
The New England Convenience Store & Energy Marketers Association represents more than 7,000 convenience stores and energy marketers across New England, advocating for policies that support local businesses, protect consumers and strengthen the regional economy.