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Electronic Cigarette Users Can't Be Happy About This

Image source: Flicker user Lindsay Fox.

The FDA has been weighing whether or not to classify electronic cigarettes as a tobacco product for some time now. Doing so would allow it to regulate the industry, including the chemical composition of the vaping liquid produced. This isn't to say that liquid vaping producers would need to change anything so much as they'd need to disclose any known harmful chemicals on their packaging. Additionally, the FDA would work hard to ensure that there's consistency in the chemical composition of the liquids produced from one batch to the next.

However, if the FDA gets involved you can almost count on slower growth for the industry. Each new flavor would need to go through extensive testing to be approved for retail sale. Further, increased levels of transparency and the use of potentially harmful components in vaping liquid and/or the vaping process could harm sales.

For investors this is cause for more concern regarding tobacco giants Altria and Reynolds American. It's possible the electronic-cigarette industry will succeed over the long run, but the current lack of transparency and threat of FDA regulation make optimism nearly impossible. This is a sector I suggest avoiding with your investment dollars.

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The article Electronic Cigarette Users Can't Be Happy About This originally appeared on Fool.com.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insights makes us better investors. The Motley Fool has adisclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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