VDX Distro v. FDA

Court of Appeals for the Fifth Circuit·Decided June 24, 2026·No. 24-60537·Published

Opinion

United States Court of Appeals for the Fifth Circuit

____________ United States Court of Appeals Fifth Circuit

FILED

No. 24-60537 June 24, 2026

Lyle W. Cayce

VDX Distro, Incorporated; Vapetastic, L.L.C., Clerk

Petitioners,

versus

United States Food & Drug Administration; Marty Makary, Commissioner, U.S. Food and Drug Administration; United States Department of Health and Human Services; Robert F. Kennedy, Jr., Secretary, U.S. Department of Health and Human Services,

Respondents.

On Petition for Review

of an Order of the Food & Drug Administration Agency No. PM0002351

Before Elrod, Chief Judge, Smith, and Wilson, Circuit Judges. Cory T. Wilson, Circuit Judge:

Use of e-cigarettes has been on the rise in recent years, especially among young people. This case is one of numerous disputes between the United States Food & Drug Administration (FDA) and e-cigarette companies contesting the agency’s efforts to balance between discouraging youth adoption of e-cigarettes and encouraging adult cigarette smokers to switch to relatively less harmful e-cigarettes—all in view of the public health

No. 24-60537

policy preferences enacted by Congress in the Family Smoking Prevention and Tobacco Control Act (TCA). Petitioner VDX Distro, Inc. (VDX) is one such company. It manufactures e-cigarette products and sells them to retailers including Vapetastic, LLC, also a petitioner here.

Under the TCA, e-cigarette manufacturers cannot market their products without FDA approval. So VDX applied to FDA to obtain marketing authorization for VDX’s menthol-flavored e-cigarette products.

In FDA’s view, non-tobacco-flavored e-cigarettes are especially dangerous for minors because those e-cigarettes are more enticing than tobacco-flavored ones. So under the agency’s “comparative-efficacy standard,” marketing applicants for non-tobacco-flavored e-cigarettes must show an advantage over tobacco-flavored e-cigarettes in encouraging adult cigarette smokers to “go digital”—i.e., to switch to e-cigarettes—or to quit altogether. FDA denied VDX’s application after determining that the benefits of VDX’s menthol-flavored e-cigarette products to adult smokers did not outweigh the countervailing risks to youths. VDX and Vapetastic petition our court for review of that decision. We deny the petition.

I. A.

Through the TCA, Congress gave FDA “the power to regulate the manufacturing, marketing, sale, and distribution of tobacco products.” FDA v. Wages & White Lion Invs., LLC, 604 U.S. 542, 551 (2024). The TCA granted FDA authority over “cigarettes, cigarette tobacco, roll-yourown tobacco, and smokeless tobacco,” as well as any other product that FDA “by regulation deems” to be a tobacco product. Id. (citing 21 U.S.C. § 387a(b)). In 2016, FDA issued a rule deeming e-cigarettes to be tobacco products. Id. at 555; 81 Fed. Reg. 29028 (May 10, 2016).

No. 24-60537

The TCA prohibits manufacturers from marketing tobacco products without FDA authorization. 21 U.S.C. § 387j(a)(2)(A). A manufacturer can obtain authorization by submitting a premarket tobacco product application. Id. § 387j(c)(1)(A)(i). 1 The application process is “onerous, requiring manufacturers to gather significant amounts of information.” Big Time Vapes, Inc. v. FDA, 963 F.3d 436, 439 (5th Cir. 2020). There are a few ways that FDA can deny a premarket application, but only two are relevant here.

First, FDA can deny applications via the TCA’s rulemaking provision. The TCA empowers FDA to promulgate “tobacco product standards.” 21 U.S.C. § 387g(a)(3). And FDA “shall deny” a premarket application if the proposed product does not conform to any “tobacco product standard in effect under section 387g.” 21 U.S.C. § 387j(c)(2)(D). The TCA itself contains two tobacco product standards: The statute bans cigarettes that contain “artificial or natural flavor[s] (other than tobacco or menthol),” and it prohibits manufacturers from using tobacco that “contains a chemical pesticide residue level greater than is specified by any tolerance applicable under Federal law.” 21 U.S.C. § 387g(a)(1). Before adopting any other tobacco product standards, FDA must publish a notice of proposed rulemaking and invite comments. Id. § 387g(c).

The second mode is through the TCA’s adjudicatory framework.

FDA “shall deny” a premarket application that does not indicate that marketing the tobacco product would be “appropriate for the protection of the public health” (APPH). 21 U.S.C. § 387j(c)(2)(A). To determine whether a product is APPH, the TCA requires FDA to consider “the risks and benefits of the population as a whole, including users and nonusers of the

1 The TCA “establishes a handful of other authorization pathways for new tobacco products,” but those alternatives are irrelevant here. Wages, 604 U.S. at 551 n.1.

No. 24-60537

tobacco product.” Id. § 387j(c)(4). The TCA further clarifies that FDA must consider “the increased or decreased likelihood that existing users of tobacco products will stop using such products and . . . [that] those who do not use tobacco products will start using such products.” Id. In plain English, the TCA aims to maximize the chances that smokers will quit and minimize the risk that non-smokers will start.

B.

In 2017, FDA noted an “alarming increase” in the use of e-cigarettes by “middle and high school students.” FDA responded by investigating reports of e-cigarette sales to minors. FDA also issued warning letters to various manufacturers, distributors, and retailers that sold e-cigarette products with “advertising that resemble[d] kid-friendly food products, such as juice boxes, candy, or cookies.” However, in 2018, “FDA continued to receive information underscoring the problem of youth use of [e- cigarettes].” By 2019, “two of the largest surveys of tobacco use among youth found that e-cigarette use ha[d] hit the highest levels ever recorded.”

In April 2020, FDA published a guidance document laying out the agency’s enforcement priorities for e-cigarettes (the 2020 Guidance). The 2020 Guidance stated that FDA would “exercise its enforcement authorities with respect to particular products . . . on a case-by-case basis, informed by the enforcement priorities described in this Final Guidance.” FDA was especially concerned with the popularity of flavored e-cigarette products with youth because “[r]esearch has long shown that flavors increase youth appeal of tobacco products, including [e-cigarettes].” The 2020 Guidance noted that youth use of menthol-flavored e-cigarettes was not as high as youth use of other flavored e-cigarettes (such as mint- and fruit-flavored), and that young people preferred cartridge-based e-cigarettes as opposed to other types. Therefore, the 2020 Guidance stated that FDA would prioritize

No. 24-60537

enforcement against “[a]ny flavored, cartridge-based [e-cigarette] product (other than a tobacco- or menthol-flavored product).” In particular, FDA would prioritize e-cigarettes that were “targeted to minors or whose marketing is likely to promote use of [e-cigarettes] by minors.”

By October 2022, internal memoranda indicate that FDA’s approach to menthol-flavored e-cigarettes had shifted. The agency had hoped that menthol-flavored e-cigarettes would have less appeal to youth than other flavored e-cigarettes and would provide a suitable substitute for adults who smoke menthol-flavored combustible cigarettes. But after further study, FDA noted a “lack of robust evidence of the actual differential use of menthol-flavored [e-cigarettes]” in reducing cigarette use per day. For menthol cigarette smokers who sought to quit or switch to e-cigarettes, the “nationally representative data” had not shown that they preferred menthol- flavored e-cigarettes to tobacco-flavored ones. Therefore, FDA stated that its approach to menthol-flavored e-cigarettes should be the same as with other non-tobacco-flavored e-cigarettes “with respect to the evidence of adult benefit.” 2 C.

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