Having been cleared by the US Postal Service (USPS), Greenlane now has the opportunity to ship B2B Electronic Nicotine Delivery Systems (ENDS) products. As a result of news like this, more than 97% of the company’s shipments are now said to be considered eligible to be carried by major carriers.
This approval is definitely news that gets the global brand house and one of the largest sellers of premium cannabis accessories off on the right foot in 2022. Through this thumbs-up, a regulatory and commercial exception to the Prevention of Cigarette Trafficking Act (“PACT Act”) is made. This allows the company the ability to ship vaporizers and accessories classified as electronic nicotine delivery system products to other companies as long as the relevant requirements are met.
The PACT Act, like other provisions, prohibits ENDS products from being shipped via USPS, causing other private carriers to be subject to similar restrictions. However, having received USPS approval, Greenlane is now able to return shipments containing such products to the USPS, which reduces costs and improves the customer experience. In addition, the company, through this approval, can now also offer its logistics capabilities to distribute ENDS products from other companies.
“We are thrilled to secure this approval from USPS to ship ENDS products business to business,” said Nick Kovacevich, CEO of Greenlane. “We continue to believe that in a highly regulated industry-which is only going to be subject to stricter regulation over time-that companies with significant size, scale, resources, and robust compliance programs will be able to successfully comply with regulatory requirements. As evidenced by the approval, Greenlane is well-positioned as a Nasdaq-listed market leader with a demonstrated history of compliance to navigate this ever-changing regulatory landscape and continue accelerating our business.”