Zyn Lawsuit: Swedish Match Accused of Overcharging for Nicotine Pouches

Case Overview: A class action lawsuit claims Swedish Match overcharged U.S. customers for Zyn nicotine pouches by using its monopoly power to inflate prices.

Consumers Affected: U.S. consumers who purchased Zyn nicotine pouches.

Court: U.S. District Court for the Eastern District of Virginia

Swedish Match North America, a subsidiary of Philip Morris International, is facing a class action lawsuit accusing the company of overcharging U.S. customers for its popular tobacco-free Zyn nicotine pouches.

The lawsuit, filed by Allen Neumark in federal court in Richmond, Virginia, alleges that Swedish Match violated federal and state antitrust laws by attaining a monopoly in the market for "modern oral nicotine pouches" and using that dominance to inflate prices, Reuters reports.

Neumark, a Florida resident, claims that Swedish Match achieved its dominant market position through a series of anticompetitive actions, including an effort to eliminate its rival, Dryft, from the market. He alleges that Swedish Match now controls approximately 80% of the market for nicotine pouches, which it sells in various flavors and strengths for around $6 per tin.

Allegations of Anticompetitive Conduct and Price Gouging

The lawsuit claims that Swedish Match engaged in several anticompetitive practices to gain control of the nicotine pouch market. For example, it points to Philip Morris International's $16 billion acquisition of Swedish Match in 2022 as an anticompetitive move that solidified the company's dominance in the market.

Swedish Match is also accused of filing frivolous lawsuits against Dryft, a competitor in the nicotine pouch market, to stifle competition and drive the company out of business. Furthermore, the lawsuit alleges that Swedish Match entered into exclusive dealing arrangements with retailers, preventing them from selling competing nicotine pouch products.

These actions, the lawsuit argues, allowed Swedish Match to achieve a monopoly in the nicotine pouch market and to charge artificially high prices for its Zyn products. Consumers, it is claimed, have been forced to pay inflated prices for Zyn pouches due to the lack of competition in the market.

Other Legal Challenges Facing Zyn

This lawsuit is not the first time Zyn nicotine pouches have faced legal scrutiny. In March 2024, a class action lawsuit was filed against Philip Morris International, alleging that the company intentionally marketed Zyn pouches to young consumers, contributing to nicotine addiction among youth.

A similar lawsuit filed in August 2024 also alleged that Philip Morris International deceptively marketed Zyn nicotine pouches to young people.

In the Zyn antitrust class action lawsuit, Neumark seeks to represent all U.S. consumers who purchased Zyn nicotine pouches. He demands damages of more than $5 million and requests that the court order Philip Morris International to divest Swedish Match to restore competition in the nicotine pouch market.

An injunction is also sought to prevent Swedish Match from engaging in further anticompetitive conduct.

Case Details

• Lawsuit: Neumark v. Swedish Match North America LLC
• Case Number: 3:24-cv-00821
• Court: U.S. District Court for the Eastern District of Virginia

Plaintiffs' Attorneys

• Lee Floyd (Breit Biniazan)
• Jeffrey Brown (Leeds Brown Law)
• James Ferraro (The Ferraro Law Firm)

Do you use Zyn nicotine pouches? What are your thoughts on this lawsuit? Share your opinion in the comments below.