A seventh person has died in the U.S. from what appears to vaping-related causes — but a growing regulatory pushback could have the opposite effect of helping consumers, according to ex-Canopy Growth Corp CGC CEO Bruce Linton.
What Happened
If state or federal authorities start cracking down on the vaping industry, it could make dangerous products more prevalent in the market, Linton said on CNBC's "Squawk Box" Tuesday.
"My worry is that when regulators say we're going to try to stop vaping, what really is going to happen is more of those products that don't come from a regulated source will get in the market."
Vape products from questionable sources can contain vitamin E and other chemicals that pose health problems when heated to a certain level in a vape.
Regulators shouldn't be "cracking down" on vaping, Linton said. Instead, they can play a role in dictating aspects like the temperature at which a vape heats up, he said.
This is a role the federal government can play, and it is likely the U.S. Food and Drug Administration has already looked into this, he said.
"The more you regulate this area and the less you ignore it, it's bad for criminals, better for public safety," Linton said.
Why It's Important
Good companies prefer more rules, and less capable companies will disappear from the market, the former cannabis CEO said.
Companies that are "science-driven" and "regulation strong" are also appreciated by the capital markets, he said.
What's Next
The Trump administration appears poised to ban flavored e-cigarettes to help stop teens from vaping, and former FDA commission Scott Gottlieb told CNBC there is a case for a "federal reckoning."
"These are falling within a regulatory gap," Gottlieb told CNBC a week ago.
"People who are vaping nicotine and having these reactions probably are vaping illegal products that are counterfeit."
Related Links:
Bruce Linton Joins Cannabis Pet Market, Becomes Special Advisor To Better Choice Company
The Dark Truth Behind The Recent Outbreak Of Vaping Related Illnesses
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Click on the image for more info.
Cannabis rescheduling seems to be right around the corner
Want to understand what this means for the future of the industry?
Hear directly for top executives, investors and policymakers at the Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9.
Get your tickets now before prices surge by following this link.