Health authorities have seized $450,000 worth of illegal e-cigarettes, or 'vapes', in the past year.
In NSW, the sale of e-cigarettes that contain nicotine is illegal, as is the sale of any type of e-cigarette to children under-18, regardless of whether they contain nicotine.
NSW Health has undertaken 928 inspections of retail premises since liquid nicotine compliance activities commenced in late 2015. These inspections include covert visits and formal inspections.
The recent year-long blitz saw eight retailers across Sydney successfully prosecuted.
NSW Health has warned retailers caught doing the wrong thing face fines of up to $1100 per offence.
NSW Health's acting director of population health strategy and performance Carolyn Murray said inspectors continued to target stores, seizing more than 26,000 e-cigarettes and e-liquids either containing nicotine or labelled as such since January.
"Don't be fooled by their aroma. E-cigarettes are particularly dangerous to young people as most contain nicotine, which is highly addictive, as well as other toxic chemicals," Ms Murray said.
Despite a ban on sales of e-cigarettes that contain nicotine, NSW Health has seen an increase in new products that contain nicotine.
These include disposable e-cigarettes, such as 'Cuvies' and 'Stigs', and pod devices, such as JUUL.
"Alarmingly, these items often look like innocuous household items such as lipsticks, highlighter pens and even asthma puffers, making it easier for children and young people to use them in public," Ms Murray said.
NSW Health inspectors routinely monitor and enforce compliance including spot checks on retailers. They can seize e-cigarettes or e-liquids that contain nicotine or which are labelled as containing nicotine.
Retailers can be prosecuted after having products seized and can be fined up to $1100 per offence.
NSW Health has increased the number of inspectors with powers to seize e-cigarettes, and has written to retailers across NSW to remind them of their obligations under the law.
The NSW Government is committed to reducing the prevalence of smoking, including the use of e-cigarettes, and will invest $17.3 million on tobacco and e-cigarette control this financial year.
This includes public awareness and education campaigns, quit-smoking support, compliance and enforcement of strong smoke-free and retailing laws, and targeted programs for vulnerable groups with high smoking rates.
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