Vermont officials describe online enforcement gains, but say problem persists for youth vaping
May 09, 2025 | Commerce & Economic Development, HOUSE OF REPRESENTATIVES, Committees, Legislative , Vermont
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State and enforcement officials told a joint House Commerce & Economic Development and House Human Services hearing on May 8 that Vermont has used existing laws to pursue online sellers of electronic nicotine delivery systems (ENDS) and secured more than $1.3 million in civil penalties, but that youth access and online marketing remain a continuing problem.
Rose Kennedy of the Office of the Attorney General said the office has pursued roughly 34 online sellers since 2020 and reached settlement resolutions that “have now resulted in approximately $1,300,000 in civil penalties plus injunctive relief.” She cited an October 2024 settlement with Amazon that included a $400,000 payment to Vermont and injunctive relief requiring Amazon to provide the state with a list of sellers who circumvent tobacco controls beginning January 2025 for four years.
That enforcement relies in part on state law the witnesses described as a delivery-sales ban (referred to during testimony as “7 BSA 10 10”), and on the Vermont Consumer Protection Act. “Vermont is one of 17 states that have a ban like this,” Kennedy said, and the office has used those authorities to pursue online sellers and seek civil penalties and injunctive relief.
Skyler Genest, chief investigator and senior director of licensee operations at the Vermont Department of Liquor and Lottery (DLL), told the committees the department has expanded both brick-and-mortar and online compliance checks and now visualizes compliance data in a publicly available dashboard called Project Rabbit. DLL reported about 4,500 brick-and-mortar compliance checks since 2020 with 382 sales to minors, and roughly 600 online compliance checks since 2020; year-to-date in 2025 DLL had conducted 23 online checks with nine sales reported.
Genest said DLL deploys 12 field investigators statewide and is exploring use of artificial intelligence, in partnership with the Agency of Digital Services, to automate surveillance and flag likely online sellers. That AI system was described as not yet operational; Genest said the department is building “lawful mechanisms” to run such surveillance without violating internet-protection rules.
Committee members pressed both witnesses on practical impacts. One committee member described a 14-year-old who avoids school bathrooms because of pervasive vape odor; the law enforcement witnesses acknowledged that youth access remains a problem and encouraged reporting. Kennedy said the attorney general’s office recently added a web reporting form to gather tips about online and underage sales and will coordinate reports with DLL for investigations.
Members also asked about platform responsibility, marketing on social media, flavor bans and menthol, and whether similar enforcement covers flavored nitrous-oxide products cited by an intern. Kennedy said social-media platforms and imagery raise separate challenges and that some platform and manufacturer responses vary; she said the office is reviewing related issues and will report back. Genest said DLL is monitoring product placement, “commingling” with look-alike nonalcohol products, and new ready-to-drink items, and has piloted direct-to-consumer alcohol compliance checks that showed poor compliance.
Both witnesses described education and retailer training as central to compliance: DLL’s training program covers lawful sales, the delivery-sales ban, and licensee obligations; Genest said the department’s training team runs seminars and online modules and trains roughly 10,000 people a year. Project Rabbit, DLL said, helps direct enforcement and education resources to locations with lower compliance; the dashboard reported a long-term compliance rate of about 90.94 percent since 2017.
No new state law or formal policy change was adopted at the hearing. Officials said they are continuing investigations, coordinating with other agencies (Department of Health, Department of Tax) and community groups, and expect to return to the committees with updates later in the year about online sales and platform-monitoring work.
Ending: Committee chairs said the two committees will continue joint oversight of online sales enforcement and work with the attorney general’s office and DLL on next steps to protect youth and enforce existing laws.
Rose Kennedy of the Office of the Attorney General said the office has pursued roughly 34 online sellers since 2020 and reached settlement resolutions that “have now resulted in approximately $1,300,000 in civil penalties plus injunctive relief.” She cited an October 2024 settlement with Amazon that included a $400,000 payment to Vermont and injunctive relief requiring Amazon to provide the state with a list of sellers who circumvent tobacco controls beginning January 2025 for four years.
That enforcement relies in part on state law the witnesses described as a delivery-sales ban (referred to during testimony as “7 BSA 10 10”), and on the Vermont Consumer Protection Act. “Vermont is one of 17 states that have a ban like this,” Kennedy said, and the office has used those authorities to pursue online sellers and seek civil penalties and injunctive relief.
Skyler Genest, chief investigator and senior director of licensee operations at the Vermont Department of Liquor and Lottery (DLL), told the committees the department has expanded both brick-and-mortar and online compliance checks and now visualizes compliance data in a publicly available dashboard called Project Rabbit. DLL reported about 4,500 brick-and-mortar compliance checks since 2020 with 382 sales to minors, and roughly 600 online compliance checks since 2020; year-to-date in 2025 DLL had conducted 23 online checks with nine sales reported.
Genest said DLL deploys 12 field investigators statewide and is exploring use of artificial intelligence, in partnership with the Agency of Digital Services, to automate surveillance and flag likely online sellers. That AI system was described as not yet operational; Genest said the department is building “lawful mechanisms” to run such surveillance without violating internet-protection rules.
Committee members pressed both witnesses on practical impacts. One committee member described a 14-year-old who avoids school bathrooms because of pervasive vape odor; the law enforcement witnesses acknowledged that youth access remains a problem and encouraged reporting. Kennedy said the attorney general’s office recently added a web reporting form to gather tips about online and underage sales and will coordinate reports with DLL for investigations.
Members also asked about platform responsibility, marketing on social media, flavor bans and menthol, and whether similar enforcement covers flavored nitrous-oxide products cited by an intern. Kennedy said social-media platforms and imagery raise separate challenges and that some platform and manufacturer responses vary; she said the office is reviewing related issues and will report back. Genest said DLL is monitoring product placement, “commingling” with look-alike nonalcohol products, and new ready-to-drink items, and has piloted direct-to-consumer alcohol compliance checks that showed poor compliance.
Both witnesses described education and retailer training as central to compliance: DLL’s training program covers lawful sales, the delivery-sales ban, and licensee obligations; Genest said the department’s training team runs seminars and online modules and trains roughly 10,000 people a year. Project Rabbit, DLL said, helps direct enforcement and education resources to locations with lower compliance; the dashboard reported a long-term compliance rate of about 90.94 percent since 2017.
No new state law or formal policy change was adopted at the hearing. Officials said they are continuing investigations, coordinating with other agencies (Department of Health, Department of Tax) and community groups, and expect to return to the committees with updates later in the year about online sales and platform-monitoring work.
Ending: Committee chairs said the two committees will continue joint oversight of online sales enforcement and work with the attorney general’s office and DLL on next steps to protect youth and enforce existing laws.
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