Earlier this month, we reported on the growing use of shipping restrictions as a policy tool to regulate tobacco products, and the likelihood that these efforts would accelerate during the 2026 legislative cycle. We highlighted previous examples of this in Hawaii and Connecticut and pointed to Illinois as an early example this year, where lawmakers introduced legislation that would make it more difficult for premium cigars to be shipped directly to consumers.

Vermont has now taken that trend a step further.

Senate Bill 198 – A Ban on Direct Shipment of Premium Cigars to Consumers

Lawmakers in Montpelier have introduced Senate Bill (SB 198), which would prohibit the direct-to-consumer shipment of cigars into Vermont. Under the bill, cigars and other covered tobacco products purchased online or through the mail could only be shipped to a Vermont-licensed wholesaler or retail dealer, effectively ending direct shipment to consumers.

While SB 198 includes a number of additional regulatory and enforcement provisions, the core impact is clear, the elimination of access for premium cigar consumers and the loss of an important lawful sales channel.

The Broader Legislative Outlook

Taken together, Hawaii’s restrictions in 2023, Connecticut’s push last year, Illinois’ approach this session, and now Vermont’s SB 198 reflect a broader legislative pattern in which shipping restrictions are increasingly used to regulate premium cigars without explicitly labeling the policy as a ban.

As more states convene for the 2026 legislative session, similar proposals are likely to emerge in varying forms. CRA is closely monitoring these developments and will continue to engage with lawmakers to protect adult consumer access, ensure premium cigars are clearly distinguished within evolving regulatory frameworks, and prevent the fragmentation of the national retail marketplace for premium cigars.

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