In a significant legal victory for public health, San Francisco City Attorney David Chiu has obtained a $1 million settlement from online tobacco retailer Lucy Goods, Inc. The agreement, announced today, puts a halt to the retailer's shipping of illegal flavored tobacco products into the city, in violation of local laws. Lucy Goods, Inc. was a defendant in a 2024 lawsuit brought by the city against several online retailers, according to a report by the City Attorney's Office.
The settlement marks a continuation of the city's efforts to clamp down on what's seen as a loophole utilized by online sellers to circumvent San Francisco’s strict flavored tobacco regulations. In October 2025, the City Attorney's Office reached a stipulated judgment with other defendants in this lawsuit, totaling nearly $4 million in penalties and fees. "The popularity of flavored nicotine pouches has skyrocketed, and we cannot risk hooking a new generation of young people on tobacco products," City Attorney Chiu stated, emphasizing the dangers posed by such products, particularly to youth, as per the City Attorney's Office.
Health concerns are at the forefront of the city's ban on flavored tobacco. According to the statement by San Francisco Health Officer Dr. Susan Philip, per the City Attorney's Office, "Evidence shows flavored tobacco pouches pose a serious threat to public health, particularly among young people, as they can impact healthy development and lead to long-term health consequences." The city has aimed to curb the attractiveness of tobacco to younger demographics, who are drawn to the fruity and minty flavors of these nicotine products.
The California Youth Tobacco Survey of 2023 illuminated this concern, demonstrating that most high school respondents who used tobacco favored flavored products. Nicotine pouches were reported as the second most common form of tobacco use among California 8th graders.
