December 05, 2024
Swedish Match and Philip Morris are facing legal action regarding the pricing and marketing of Zyn pouches.
If you've been following the news in the world of nicotine and tobacco products, you may have heard about Zyn.
These small, discrete pouches are packed with nicotine but don't contain any tobacco leaf. They're part of a new wave of alternative nicotine products, marketed as a "cleaner" way to get your nicotine fix.
But now, Zyn manufacturers are facing some serious legal trouble.
According to a recently filed class action lawsuit, Swedish Match and its parent company, Philip Morris International (PMI), allegedly overcharged customers and engaged in anticompetitive practices for over a decade.
Before we get into the lawsuit, let's take a step back and look at what Zyn is and how it became so popular.
Swedish Match manufactures and promotes Zyn pouches, a product that tobacco giant Philip Morris International acquired in 2022.
The pouches come in several flavors, like Cool Mint, Citrus, and Coffee, and different nicotine strengths, ranging from 3 to 6mg per pouch.
Zyn and other oral nicotine pouches offer a discrete, supposedly "healthier" way to consume nicotine compared to smoking cigarettes or using oral tobacco products like dip or chew.
You simply place the pouch between your gum and lip, let the nicotine absorb, and discard it later - no smoke, no spit, no fuss.
Zyn's brand positioning has helped the company capture over 80% of the rapidly growing nicotine pouch market.
But as we'll see, a class action lawsuit claims that some of this success may have come through less-than-legal means.
In November 2024, lead plaintiff Allen Neumark filed legal action against Swedish Match in Virginia where the company bases its US operations.
The lawsuit alleges that Swedish Match and PMI overcharged customers for Zyn pouches and worked to stifle competition in the nicotine pouch market, effectively violating federal and state antitrust laws.
Neumark wants monetary damages for Zyn users who overpaid due to the company’s alleged illegal marketing maneuvers and an injunction to stop Swedish Match and Philip Morris from engaging in further anticompetitive conduct.
The lead plaintiff is currently asking the court to represent everyone who purchased Zyn products.
If the courts award Neumark's case class-action status, thousands, if not millions, of Zyn customers could become part of the lawsuit.
Let’s break down exactly what Numark accuses Swedish Match of doing.
The law firm representing Neumark found that Swedish Match took aggressive legal action against a competing nicotine pouch maker, Dryft Sciences, to drive them out of the market. This move allegedly included filing "baseless" patent infringement lawsuits and pressuring Dryft's suppliers and distributors.
The complaint also points to PMI's acquisition of Swedish Match in 2022, arguing that this deal eliminated all potential competitors and allowed the companies to dominate the nicotine pouch arena unfairly.
After taking out the competition, the lawsuit contends that Swedish Match and Philip Morris limited consumer choice by intentionally keeping Zyn prices high, violating the Sherman Antitrust Act and several state laws.
If Neuman can prove these allegations, it may show that Zyn users have been paying more than they should in a fair, competitive market.
The class action lawsuit also raises some health concerns about Zyn’s high-strength nicotine pouches.
Neuman claims that some Zyn varieties contain as much nicotine as a whole cigarette and that using multiple pouches per day could lead to consuming a pack's worth of nicotine or more.
The lawsuit also argues that Zyn doesn't adequately warn consumers about its high nicotine content, raising potential nicotine addiction fears, particularly among young people.
While Swedish Match North America and PMI promote Zyn as a "tobacco-free" alternative, the nicotine inside the product still carries health risks, including:
Neumark accuses the manufacturers of downplaying these risks to make Zyn seem "safer" compared to cigarettes or other tobacco products despite health experts warning that no nicotine product is entirely safe.
If you use Zyn or have used it in the past, you may be wondering what this lawsuit means for you.
First, it's important to note that the allegations in the complaint are just that - allegations. Neuman must prove his claims in court, where Swedish Match and Philip Morris will respond and present their defense.
Zyn pouches buyers may want to watch the case for any potential settlement or damages awards. This lawsuit seeks to represent all Zyn users, so it may include you even if you don't take any action yourself.
It's always a good idea to be aware of how much nicotine you consume, whether from Zyn or any other source. Pay attention to the nicotine strength listed on labels and be mindful of any symptoms of dependence, like feeling anxious or irritable without nicotine.
The class action lawsuit against Swedish Match and PMI over Zyn products raises serious concerns about unfair pricing and anticompetitive practices in the nicotine pouch markets.
Regardless of the outcome of this lawsuit, Zyn users should stay informed about the nicotine products they use, including their content and potential risks of addiction.
Finally, talk to a healthcare professional as soon as possible if you’re worried about how pouch use may have affected your health.
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