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Designed to simulate smoking, electronic cigarettes continue to grow in popularity but uncertainty over possible Health Canada regulations and restrictions by other regulators are raising concerns for the industry in Canada.
Phillip Gorham, a tobacco analyst for the U.S. investment research and management firm Morningstar, says further growth of the e-cigarette industry will be dampened if regulatory bodies decide to impose controls similar to those on tobacco products. Among them, he cites increases in prices and taxes and legislation restricting advertising, store displays and rules on who can sell them.
The growth in the e-cigarette category has been driven by novelty, Gorham said, adding that if the devices are kept out of view and under lock and key it will difficult to capture new sales.
“E-cigarettes depend on marketing for growth and cigarette companies can’t generate consumer interest without that,” says Gorham. “It’s very much on trial.”
The UN health agency this week called for member countries to prohibit e-cigarette sales to minors and ban their use indoors until more evidence can be gathered about the risks, adding that the product’s expanding popularity presents a public health dilemma…

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