Imperial Tobacco Canada is calling on Ottawa to use its ongoing review of the Tobacco and Vaping Products Act (TVPA) to tighten enforcement against the growing illicit market for tobacco, vaping products, and nicotine pouches.
In a submission to the government’s third legislative review of the TVPA, the company warned that weak enforcement and poor coordination between provinces are fuelling the spread of illegal products, which it says now make up a significant share of the market.
Eric Gagnon, vice-president of corporate and regulatory affairs at Imperial, said Canada has “a unique opportunity” to strengthen oversight while ensuring adult smokers have access to legal alternatives.
“Illegal cigarettes continue to flood the market. Illegal vapour products are growing. And now illegal nicotine pouches are available from coast-to-coast,” said Gagnon in a statement. “Without decisive and coordinated action, the problem will only accelerate—posing serious risks to youth, public health, and government revenues.”
Imperial says illicit tobacco accounts for nearly 30% of the Canadian market, while illegal vaping products make up about 20%. The company also blames the removal of ZONNIC — a Health Canada-approved nicotine pouch — from convenience stores for leaving space for unregulated products sold online, on social media, and on the street.
The company’s recommendations include creating a national enforcement body, launching public education campaigns, empowering inspectors with digital tools, introducing digital excise stamps, and harmonizing provincial vaping rules to close loopholes.
Imperial argues the measures would help Canada reach its goal of becoming a smokeless country by 2035, while curbing the influence of organized crime in the sector.
“The TVPA review shouldn’t just be another regulatory exercise,” Gagnon said. “It is a critical opportunity to close enforcement gaps, tackle the illicit market, protect youth, and achieve the public health objectives set out in the Act itself.”
