Tobacco and Vaping Products Act review exposes gaps as illicit market grows

Rothmans, Benson & Hedges Inc. says federal leadership can protect Canadians from illegal and non-compliant products

TORONTO, May 25, 2026 /CNW/ - Rothmans, Benson & Hedges Inc. (RBH) says Health Canada's third legislative review of the Tobacco and Vaping Products Act (2018), released last week, exposes weaknesses and overlooks key realities as illicit nicotine product sales continue to expand in Canada. The review follows a December 2025 evaluation that found Health Canada's dated IT systems limit its ability to track compliance, manage enforcement effectively, and analyze emerging trends.

Canada's illicit tobacco and nicotine trade exceeds that of many peer jurisdictions with similar income and development levels, including those in the European Union. A recent KPMG report found that non-regulated and illegal products now make up 38% of the Canadian tobacco market and account for up to $2.1 billion in uncollected tax revenue for governments across Canada. By comparison, a 2025 KPMG report covering 38 European countries estimated the continent's illicit market at about 10%. Of the 38 countries, 37 had smaller contraband markets; the one exception was tied with Canada.

Illicit tobacco and nicotine products are a public health concern because there are no controls on product quality, ingredients, packaging, or youth access. By focusing solely on legal industry actors, the TVPA review misses the mark on keeping Canadians safe and ensuring regulatory compliance. It fails to address--or acknowledge--that contraband sales exceed those of any individual regulated industry actor and that these illicit products disregard government health regulations, taxes, criminal law, and Health Canada's own tobacco cost-recovery charges, which fund important cessation programming, research, education campaigns, TVPA enforcement activities, and support for First Nations, Inuit and the Métis Nation.

Health Canada's TVPA review found that online sales of vaping products have grown since the TVPA took effect in 2018 and are expected to continue rising, requiring "robust" and "innovative" compliance strategies and expanded enforcement tools to address online non-compliance in a "digital era." This acknowledgement appears only in the third review of the TVPA, even though the legislation was introduced, debated, and passed in the digital era. The review also does not recognize the growth of online contraband tobacco sales by organized criminal groups.

Besides this TVPA review, Canada's enforcement approach to illicit and non-compliant tobacco and nicotine products has seen few visible public updates in more than a decade. The last public RCMP report on coordinating the fight against illicit tobacco was released in 2011. The legislative review identifies a need for stronger enforcement tools, but it stops short of calling for what is truly needed: federal leadership and action using existing regulatory, legal, and enforcement powers to tackle the massive illicit market that ignores the TVPA and threatens public health.

Quotes

"Effective law and regulatory enforcement are not optional; they are the foundation of our legal system and of any credible regulatory system. Right now, that foundation is under significant strain, given Canada's massive illicit market. Addressing these gaps, along with federal leadership on Canada's contraband problem, must be an immediate priority." – Milena Trentadue, Managing Director, Rothmans, Benson & Hedges Inc.

"Health Canada's review makes clear that enforcement has not kept pace with the growth of Canada's illicit market. Without enforcement, regulations and laws fail to protect Canadians, leaving a country where criminals and illegal actors face too little risk and have too much opportunity." – Kory McDonald, Head, Corporate Affairs, Rothmans, Benson & Hedges Inc.

About Rothmans, Benson & Hedges Inc.

Rothmans, Benson & Hedges Inc. (RBH), an affiliate of Philip Morris International Inc., is one of Canada's leading tobacco and nicotine companies and is working to deliver a smoke-free future. RBH is committed to sustainability and creating a positive impact on communities, the economy, and the environment. Currently, RBH employs nearly 800 people across the country, with its headquarters in Toronto and a factory in Québec City. Discover more about the company at https://www.rbhinc.ca/ and stay updated on RBH's transformation by following Twitter and LinkedIn.

SOURCE Rothmans, Benson & Hedges Inc.

Media inquiries: Brayden Akers, Manager, Media Relations and Issues Management, Rothmans, Benson & Hedges Inc., Email: [email protected]