Chinese vape manufacturer Heaven Gifts Technology, the company behind the popular Elf Bar brand, has agreed to withdraw all flavored vaping products from California, following a settlement with NJOY LLC, a subsidiary of U.S. tobacco giant Altria Group. The agreement effectively ends nearly two years of litigation over alleged violations of state and federal vaping laws.
Settlement Ends Prolonged Legal Battle
According to a joint filing submitted on October 9 in the U.S. District Court for the Southern District of California, Heaven Gifts and NJOY have requested a permanent injunction that would formally prohibit Heaven Gifts and its affiliates from selling, distributing, or shipping any flavored disposable vapes to customers or businesses within California.
The injunction would also apply to any shipments originating outside the state if Heaven Gifts “knows or should know” the products could enter the California market. Once approved, the order would permanently end Elf Bar’s presence in California’s flavored vape segment.
In the filing, Heaven Gifts denied all allegations and admitted no wrongdoing but agreed to the injunction as part of a confidential settlement. Any future violations could be treated as contempt of court, according to the motion.
NJOY’s Complaint: Unfair Competition from Unauthorized Products
The lawsuit, brought by NJOY in early 2024, accused Heaven Gifts of illegally marketing flavored vapes without FDA authorization and violating California’s statewide ban on flavored tobacco products.
NJOY argued that brands like Elf Bar and Lost Mary gained unfair market advantage by offering a wide range of sweet and fruity flavors at lower prices, while NJOY was limited to its FDA-cleared tobacco-flavored NJOY Ace device.
“California’s flavor ban is clear, and FDA authorization is required for any product sold in the U.S.,” an NJOY spokesperson said in a prior filing. “Companies that ignore these rules harm both consumers and legitimate manufacturers.”
Legal Context and Background
The dispute is part of a broader industry-wide crackdown on unauthorized vaping products in the U.S.
In 2023, Altria’s NJOY launched a nationwide lawsuit against more than 30 vape brands—including Elf Bar, Puff Bar, Esco Bar, Lost Mary, and Breeze—alleging widespread violations of federal and state laws. Most defendants were later dismissed, but Heaven Gifts remained central to the California case.
The court previously issued preliminary injunctions against several brick-and-mortar retailers in late 2024 and made them permanent in June 2025. Negotiations between NJOY and Heaven Gifts intensified later that year, leading to the latest settlement.
Conditional Clause and Future Implications
The injunction includes a conditional clause stipulating that if California’s flavored tobacco ban is repealed or amended, the order would automatically lapse.
While financial terms were not disclosed, the settlement marks one of the most significant state-level legal outcomes involving an international vape brand.
Legal experts say the case reflects an emerging strategy by major tobacco companies: using targeted litigation to restrict unauthorized competitors and enforce flavor bans through court-supervised agreements rather than prolonged trials.
“This type of injunction-based settlement allows plaintiffs to secure compliance without needing to prove liability,” said one U.S. attorney familiar with tobacco regulation. “It’s becoming a model for future enforcement efforts.”
What It Means for the Industry
The exit of Elf Bar’s flavored lineup from California—one of the largest vape markets in the U.S.—could reshape local retail dynamics and signal broader compliance challenges for foreign vape brands operating in states with strict tobacco control laws.
California’s ban on flavored tobacco, upheld by voters in 2022, has been one of the toughest in the nation and is increasingly being enforced through civil and commercial litigation.
As regulators and industry leaders tighten control over unapproved nicotine products, the settlement underscores a new phase of legal and commercial pressure on the global vaping supply chain.
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