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How to Adapt Your Business for New Tobacco Laws in Texas

Vape and tobacco shop owners in Texas are facing significant business changes with new legislation. We've gathered the details and put together this post to explain exactly what's changing and how those businesses can adapt.

What's changing in Texas (SB 2024, effective September 1, 2025):

Broader product definitions:

• All vape ingredients are now regulated, not just nicotine

Protecting youth:

• Products that might appeal to minors are banned

• Cartoon characters, candy flavors, and vape disguised as toys or school supplies are now prohibited

Stricter sourcing rules:

• Vape liquids from China and certain other countries are prohibited

• Owners are responsible for checking with their suppliers to ensure compliant sourcing

Ingredient restrictions:

• The following ingredients are now banned from vape products:

  • Cannabinoids (THC, CBD)

  • Kratom

  • Kava

  • Mushrooms

  • Alcohol

Tougher penalties:

• Any vape or tobacco shop owner in violation of these new restrictions face a Class A misdemeanor charge

• There is also potential for up to one year of jail time

How to Adapt Your Business: 

These restrictions change the way vape and tobacco shop owners in Texas must to business. Here is a list of priorities to start with.

Update your product mix:

• Remove all non-compliant products from inventory (again, it is up to the owner to work with their supplier on which products not to include, owners should not expect suppliers to reach out them)

• Source vape liquids from approved manufacturers (not from China or other restricted countries)

• Offer FDA-approved alternatives (e.g., nicotine gum, patches) for customers transitioning away from banned products

Stay informed and compliant:

• Regularly check with the Texas Department of State Health Services for updates

• Secure necessary licenses: business, tobacco retail, and state-specific vape licenses

• Use SumUp's inventory management system to track and control stock, ensuring compliance 

Revamp your marketing:

• Remove all marketing materials that could appeal to minors, for example:

  • Take down posters featuring cartoon characters or vibrant, candy-like imagery

  • Replace product names like "Bubblegum Blast" or "Cotton Candy Dream" with more neutral terms 

  • Remove any vape devices shaped like toys, school supplies, or popular snack items

• Ensure all advertising follows both state and FDA guidelines

  • For Texas-specific guidelines, visit the Texas Department of State Health Services website (dshs.texas.gov) and search for "tobacco and vape regulations"

  • For FDA guidelines, visit fda.gov/tobacco-products and look for the "Marketing and Advertising" section

• Make sure your messaging is targeted and compliant. SumUp’s Connect messaging allows you to create a customer database and send relevant promotions to those most likely to act on them.

Strengthen age verification:

• Implement electronic ID checks for all customers

• Train staff on strict enforcement of age restrictions (21+)

• Use SumUp's POS system to prompt for ID checks and record verification 

Enhance customer education and loyalty:

• Create informational materials explaining the new laws and available alternatives

• Implement a loyalty program with SumUp's Connect Plus package to encourage repeat business

Streamline your operations:

• Use SumUp's point-of-sale system to manage sales, inventory, and compliance efficiently 

• Track customer preferences and analyze sales data with real-time reporting to identify trends and opportunities 

• Ensure you're using approved payment processors familiar with tobacco and vape rules to avoid transaction issues

Stay updated on regulations:

• Regularly review state legislative updates

• Join local trade associations for the latest compliance alerts

• Keep detailed records of age checks, inventory, and licensing renewals

SumUp Team