Convenience retailers and distributors, including Circle K and locations operated by FEMSA, are named in a new lawsuit for allegedly fueling youth nicotine addiction by selling flavored disposable e-cigarettes across New Mexico, the state attorney general said Tuesday.
New Mexico Attorney General Raúl Torrez said the complaint alleges the retailers and distributors willfully distributed and sold the products in blatant disregard for public health and safety.
Defendants mentioned in the lawsuit are: Circle K Stores, Inc.; TMC Franchise Corp.; Southwest Convenience Stores, LLC; Emprex Proximity LLC doing business as OXXO USA; Delek US Holdings, Inc., doing business as DK; Alon Brands, Inc.; Alexander Stearns, LLC doing business as Max Distributing; and J&M Distributors, Inc.
The lawsuit alleges that Circle K, which operates its New Mexico stores through TMC Franchise Corp., is named because it is responsible for store layout, marketing materials, product selection and the communication of product characteristics to consumers at the point of sale.
“In short, Circle K tells its franchisees what products they can purchase, who they can purchase from and carefully monitors what products are being sold and in what volume,” according to the lawsuit. “On information and belief and based on the franchise agreements, Circle K is aware that its franchisees are selling flavored disposable e-cigarettes in New Mexico, and not only has failed to stop these sales, but has approved the brands being sold.”
FEMSA-operated OXXO, Alon and DK locations are also named for having sold flavored disposable e-cigarettes near schools and youth facilities.
“These companies built a pipeline that moves illegal, addictive products from overseas factories into the hands of New Mexico’s kids,” Torrez said. “Flavored disposable e-cigarettes are not authorized for sale anywhere in the United States. They are engineered to taste like candy, designed to be hidden in a backpack and loaded with enough nicotine to create a lifelong addiction. The retailers and distributors who profit from these products will be held accountable.”
The lawsuit describes how brightly colored disposable vape products, often sold in flavors like Blue Razz Ice, Strawberry Cream and Watermelon Mint, have become entrenched in gas stations and convenience stores across the state, the attorney general’s office said in a statement.
The complaint seeks to disrupt the illegal supply chain bringing flavored disposable e-cigarettes into the state and to stop their sale in stores throughout New Mexico. The New Mexico Department of Justice is also seeking civil penalties and other relief under the New Mexico Unfair Practices Act.
Circle K, owned by Alimentation Couche-Tard, Laval, Quebec, and OXXO, owned by Monterrey, Mexico-based FEMSA, did not respond to CSP's requests for comment.
In September, Food and Drug Administration Commissioner Marty Makary urged retailers to stop selling illegal vapes.
“Too often, retailers in communities are selling illegal vaping products marketed to young people with fruit or candy flavors and even marketing gimmicks such as built-in video games and Bluetooth speakers,” Makary said.
In 2024, a group of Democratic senators sent letters to 22 top convenience-store chains and wholesalers, reminding them of their obligations and legal liability under the Family Smoking Prevention and Tobacco Control Act and highlighting “the apparent widespread violations of federal law that prohibits the sale and distribution of unauthorized tobacco products at convenience stores, gas stations and other retail outlets across the nation.”
To date, the FDA said there are 41 e-cigarettes authorized by the agency. These are the only e-cigarettes that may be lawfully sold to in the United States. It is illegal for a retailer to sell any tobacco product—including e-cigarettes—to anyone under 21.
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