RLX seized millions of fake vapes last year

Chinese vape manufacturer RLX Technology has said it intercepted 60m fake cartridges in 2023, which shows the scale of the challenge posed by counterfeiting to the sector.

RLX set up an anti-counterfeit programme – called Golden Shield – in 2019 to try to disrupt criminal networks infringing its trademarks. Last year, along with the fake cartridges, the Shenzhen-headquartered company also assisted the authorities in 187 anti-counterfeit cases and seized 77,000 e-cigarette devices.

"Our Golden Shield programme to combat the proliferation of counterfeit vaping products was one of the year's major success stories," said chief executive Ying (Kate) Wang, who noted that last year's haul was a "substantial increase" from the 35 cases, 49,000 cartridges, and 5,600 devices intercepted in 2022.

"This programme not only protects our consumers but also upholds the integrity of the vaping industry by ensuring that only safe, high-quality products reach the market," added Wang.

RLX business is otherwise accelerating fast, with sales of more than $86m in the second quarter of this year, up from around $53 million in the same period of 2023, after suffering a steep decline in the wake of regulatory crackdowns on flavoured vapes that agencies say are targeted at teenagers.

The global e-cigarette and vape market size was valued at $28.2bn in 2023 and is expected to grow at a compound annual growth rate (CAGR) of more than 30 per cent from 2023 to 2030, according to market analysis firm Grand View Research. With such high growth expected, despite regulatory restrictions, it is almost inevitable that counterfeiters will try to cash in.

Counterfeit and unapproved vaping products pose a very serious health concern to users as they are likely manufactured in unregulated facilities with unverified ingredients. That is particularly concerning given the outbreak of e-cigarette, or vaping, product use-associated lung injury (EVALI) in the US that peaked in 2019.

Like other vape manufacturers, RLX products has rolled out security labels to try to help users verify its products before use. The labels contain a scratch-off panel that reveals a 14-digit serial number that can be inputted into a website and a QR code that can be scanned with a mobile phone.