Danish authorities are currently investigating Swedish vape shops. The reason is the suspicion that Danish roadside vendors may be buying flavoured e-juice and disposable vape pens, which are now illegal in Denmark, via Sweden.

But what does this really mean for Swedish e-cigarette retailers? Road hill has been following a case where the company iSmokeking got into trouble.

Since a year ago, all e-liquids that do not taste of either tobacco or menthol have been banned from sale in Denmark. In addition, so-called disposables or disposable e-cigarettes have been banned for some time. Since then, Danish authorities have been busy. The bans also apply to foreign online stores. But as Denmark is one of the few countries in the EU with restrictions on flavours and disposables, this means that virtually all stores that allow Danes to trade are breaking Danish law.

"We received an angry letter from the Danish Safety Technology Authority accusing us of selling illegal products to Danes. They also wanted to know which suppliers we use, and they informed us that they had forwarded the matter to the police." says Fredrik Andersson, who runs iSmokeking, which has a physical store in Uddevalla.

"Illegal marketing"

The Danish Safety Technology Authority notified iSmokeking in order to "market electronic cigarettes that were not registered and authorised in Denmark" via their website. This happened even though no direct sales had actually been made to Danish customers. However, the Danish Safety Technology Authority still believed that the company was acting illegally simply because the products were available and could thus be considered to be "marketed" to Danes.

"They threatened us directly with fines for breaking their laws. Even though we haven't sold anything to Denmark." says Fredrik Andersson.

Marketing or sales?

According to the Danish Security Authority iSmokeking Furthermore, they have not registered with the authority, which is a requirement for selling e-cigarettes and accessories in Denmark. Road hill contacted the Danish Safety Technology Authority for an explanation of the report.

Lone Hansen, Head of Communications at the authority, is not authorised to comment on specific cases, but maintains that "the offence"according to the Safety Authority's interpretation, is clear:

"Marketing something is the same as making a product available to the customer," answers Lone Hansen, as Road hill asks about the case.

"Confusing the concepts"

The case has caused headaches for both users and companies in Sweden. The fact that an authority in a single EU country can issue fines to companies simply because their website is accessible to Danes with internet access is contrary to how e-commerce works in practice.

Karl-Åke Johansson, Chairman of the consumer organisation New Nicotine Alliance Sweden (NNA Swe), reacted immediately to the Danish authority's actions.

"There is a huge difference between marketing a product and actually selling it. The Danish authorities have clearly confused the concepts here." says Karl-Åke Johansson to Road hill.

Danes are adjusting their practices

After that Road hill and NNA Sweden contacted the Danish Safety Technology Authority, there have been new announcements about what applies.

"They have admitted that their wording was wrong and will hopefully change their practice in the future. A website that is accessible to Danes and only markets e-cigarettes is actually allowed to exist - as long as it is not possible to buy anything. However, it is crucial that companies review their websites to avoid misunderstandings," says Karl-Åke Johansson.

Strict rules for e-cigarettes in Denmark

Danish regulations for e-cigarettes and accessories are very strict. In order to sell the products, a company must first register with the Danish Safety Technology Authority and then pay an annual fee. In addition, each product must be approved by the authority, which involves additional costs and restrictions on the range.

The rules in Denmark differ from the rest of the EU. Disposable models are almost completely banned (unless they are childproofed) and only "tobacco flavour" and menthol are permitted flavours in e-liquids - also for nicotine-free e-juice (shortfills).

"The law is relatively new and the Danish authorities have obviously now turned their attention to Swedish companies. At the same time, the black market for e-cigarettes and e-juice, especially disposable models, has exploded since the flavour ban was introduced last year - so it's not easy for them," says Karl-Åke Johansson.

"It's not worth selling to Danes"

Victor Bryn-Jensen, Chairman of the industry organisation The industry organisation for Electronic Cigarettes (BELC) and employed by Cigge.se, believes that it will be difficult for Swedish companies to justify selling to Danish hauliers from an economic perspective under the new laws.

"When we looked at the conditions, the costs and all the extra administration, we decided to stop ALL sales to Denmark. We took the safe route and blocked Danish IP addresses on all our sites and made it impossible to order to Denmark," Victor Bryn-Jensen says to Road hill.

"Important for companies to be proactive"

However, he emphasises that companies don't necessarily have to go that far. The most important thing is that they block the possibility of purchase.

"It's important that companies are proactive and review their websites now. If a company ignores the problem and the Danish Safety Technology Authority conducts a control purchase that for some reason goes through, then it's a criminal offence and you risk fines. Waiting and seeing what happens is a risky strategy." says Victor Bryn-Jensen.

Awaiting response from the police

For iSmokeking the next step is to wait for a response from the Danish police. Even though the company has probably not committed a direct offence, the case must still be dealt with, says Fredrik Andersson.

"The Danish Safety Technology Authority has recognised that they have formulated themselves incorrectly. They cannot prove that we have sold anything to Denmark. But the notification has already been sent and cannot be withdrawn. It's really quite absurd." Fredrik Andersson says to Road hill.