As the U.S. Supreme Court gears up for its next term, a fresh battle over regulatory power looms large, with the vape industry and tech giants like Meta and Nvidia at the heart of the fight. This term, starting October 7, could reshape how businesses interact with federal regulations, continuing the court’s recent trend of curbing agency authority.
One case set to test this dynamic involves the U.S. Food and Drug Administration (FDA) and its rejection of flavored vape products. Companies like Triton Distribution and Vapetasia, which create e-cigarette liquids with names like “Strawberry Astronaut” and “Bunny Season,” challenge the FDA’s decision to deny their applications, sparking debate over the agency’s role in regulating consumer products. The FDA argues these flavored products pose a significant risk to youth, citing health concerns, while only approving a limited number of tobacco and menthol options.
This case is part of a broader effort to dismantle federal agency power, a movement gaining momentum after a June ruling that overturned the 40-year-old Chevron deference, which allowed federal agencies to interpret ambiguous laws. With conservative justices now in the majority, there’s an appetite to further strip agencies like the FDA, Environmental Protection Agency (EPA), and Securities and Exchange Commission (SEC) of their regulatory clout.
Beyond vaping, the court will also tackle securities fraud lawsuits that could impact how private citizens sue corporations. Nvidia and Meta’s Facebook both face class action suits, with plaintiffs alleging they misled investors. These cases could redefine the threshold for such lawsuits, potentially making it more difficult for investors to hold companies accountable for fraud. Facebook’s case revolves around the misuse of user data between 2017 and 2018, while Nvidia is accused of misleading investors regarding its involvement in the cryptocurrency market. Both cases could result in increased liability for companies if the court rules in favor of the plaintiffs.
Legal scholars are closely watching this term, predicting that the business community will be left adjusting to a landscape where regulatory oversight continues to shrink. The Supreme Court’s decisions in these cases will likely set a lasting precedent for the relationship between corporations and federal agencies, with significant consequences for both.
