We know our customers are anxiously awaiting word on how the PACT Act is going to affect delivery of their vape juice orders. We have been working diligently to find solutions and are finally ready to provide an update.
For those who don't know, the PACT Act was snuck through on page 5,136 of the so-called coronavirus relief bill in December of 2020. It is best described by its nickname, the "vape mail ban." The bill prohibits the mailing of vape products to customers through the United States Postal Service (USPS), adds crushingly intricate, frequent and voluminous reporting requirements which represent a nearly insurmountable burden to small and medium sized businesses, and adds sales and delivery requirements that will greatly increase the cost of vaping.
Like many other vape companies, we at Kai's Virgin Vapor had initially hoped that FedEx, UPS and other private carriers would step in to keep vape order deliveries flowing. However, FedEx quickly bowed out voluntarily, announcing that the company would no longer ship vape products due to the onerous reporting requirements and restrictions imposed by the PACT Act. Unfortunately, UPS has now followed suit as has DHL and all other major carriers.
With these doors now closed, Kai's Virgin Vapor has turned to the smaller private sector and, after weeks of frustration and futility, we are now cautiously optimistic that we will be able to find a solution that will enable us to continue to ship to most of our customers after the USPS ban goes into effect on April 26th.
We will be announcing full details of the program as soon as we have them (keep an eye on our PACT Act Compliance FAQ page), however, we can say this. Even though we anticipate that we will be able to continue to ship, there will undoubtedly be some zip codes that will be excluded, at least initially. Shipping costs will almost certainly go up. Adult I.D. with signature on delivery will be required for every order, which means an adult will have to plan to be available when the order is delivered. Moreover, the first few months of PACT Act compliance will undoubtedly be a bit of a bumpy ride.
We urge our customers to plan ahead. Plan for possible temporary delivery interruptions. Plan for an increase in shipping costs. Stock up now so that you can get through any bumpy transition period without running out of e-juice.
The PACT Act was clearly designed to kill the vape industry. It is difficult to over state the drain on vape companies that this act represents. Companies will be forced to hire a full time individual or outsource to the tune of tens of thousands of dollars per year just to keep up with the onerous and complex monthly reporting requirements. Many companies are finding that they will have to buy a van and hire a driver to make the daily round trip with customer orders to the insertion point for the only private carrier they can find who will still ship vape products. Many companies are also facing complex state and local tax and delivery requirements that most online stores are just not built for. For many vape companies, these challenges will be too great. We expect that many, many companies are going to be put out of business by the PACT Act.
Make no mistake, that was the intention. This Act was meant to destroy an industry--and for no good reason. USPS has for years offered adult signature verification on delivery for $6.70 with any order. Nothing is gained by forcing vape companies through these ridiculous hoops. Moreover, the extremely short period granted for companies to figure out how to comply was clearly intended to force as many as possible to give up.
While exact details are coming soon, we can say this now: Kai's Virgin Vapor will not be one of them.