Prohibition of the sale and supply of single-use vapes Full Business and Regulatory Impact Assessment

Competition Assessment

Explain here whether your proposals will have an impact on competition ensuring you provide evidence to back up any statements you make.

• Will the measure directly or indirectly limit the number or range of suppliers?

205. The policy will directly limit the number and range of suppliers in Scotland through an outright ban on the sale or supply of single-use vapes in the course of business. As the vast majority of single-use vapes are manufactured outside Scotland, it is unlikely there will be significant effects on domestic manufacturers, and as such they are excluded from this assessment. While it is possible that the policy will limit the number and range of imported vaping products available to importers and suppliers in Scotland, they can choose to switch to selling reusable alternatives and associated consumables. It is also possible that the policy will limit the number and range of domestic retailers of vaping products in Scotland, but retailers can also choose to switch to selling reusable alternatives and associated consumables. Although there could be barriers to entry for news businesses entering the market in the form of higher costs of the alternative material items, this may be short lived as these items become more popular and economies of scale begin to take form.

• Will the measure limit the ability of suppliers to compete?

206. As the policy bans the sale of single-use vapes, suppliers who sell exclusively or predominantly single-use vapes will encounter limitations in their ability to compete, unless they switch to a reusable alternative or associated product. There could be positive competition impacts in alternative products, such as reusable vapes and ancillary equipment including e-liquids and coils, through increased demand for these products encouraging new entrants into the market.

207. The policy will apply restrictions to all businesses (importers, re-branders, retailers and wholesalers) equally. The proposals will not limit businesses’ ability to compete on quality, geographical location, price, advertisement or other grounds on which businesses frequently compete. However, businesses in the supply chain which solely import single-use vapes for domestic sale and/or those solely selling single-use vapes will no longer be able to do so.

• Will the measure limit suppliers' incentives to compete vigorously?

208. No, since the ban on the supply of single-use vapes is expected to be applied uniformly across Scotland (along with England, Wales and Northern Ireland) it will create a level playing field for all businesses. Therefore, it is not expected that there will be competition issues with consumers switching to a different retailer to request these items. Businesses will also be on a level playing field as they will not be able to undercut each other by offering cheaper single-use vapes as those will be banned.

• Will the measure limit the choices and information available to consumers?

209. Yes, consumers will no longer be able to purchase single-use vapes, but will not be restricted in the information they are able to receive. However, consumers will be able to switch to alternative products if they wish to. It is expected that some consumers will quit vaping entirely as a result of the policy proposal.