Is the FDA Poised to Crack Down on E-Cigs?

Electronic cigarettes are loosely regulated, but it looks like that is about to change.

Dave Williamson
Dave Williamson and Michael Douglass
Apr 6, 2014 at 2:03PM
Health Care

Word is starting to leak out that the Food and Drug Administration is about to exert its power over the increasingly popular electronic cigarette market.

Demand for e-cigs continues to gain steam; Lorillard (UNKNOWN:LO.DL) controls half the market and saw 25% growth from its Blu brand. However, watchdog groups are up in arms over the industry's loose regulations, highlighting what they see as youth-friendly flavors like tuti-frutti and skyrocketing rates of poisonings from inhaling too much nicotine vapor. 

On this edition of Market Checkup, Motley Fool health-care analysts David Williamson and Michael Douglass discuss the FDA's coming regulatory power move, how this could affect tobacco stocks, and what they see as the long-term sales potential of e-cigs.