Federal Court Rules FDA’s Tobacco Fine Authority is Unconstitutional

From CDA News

On Feb. 2, 2026, the Federal District Court for the Northern District of Texas issued a decision ruling that the U.S. Food and Drug Administration's (FDA) authority to impose civil money penalties (i.e., fines) for tobacco regulation violations is unconstitutional. Specifically, the court held that the civil money penalties violate the U.S. Constitution’s Seventh Amendment, which guarantees the right to a trial by jury. The pending lawsuit was brought by Vaping Dragon LLC against the FDA.

The FDA has the authority to impose civil money penalties on companies, including manufacturers, distributors and retailers, that violate federal tobacco regulations under the Family Smoking Prevention and Tobacco Control Act. This includes selling unauthorized tobacco products or failing to comply with premarket review requirements. The current maximum civil money penalty amount for a single violation relating to tobacco products is $19,192. However, for retailers, the FDA can seek fines of $20,678 for selling unauthorized e-cigarettes. Read more here.