Incentive Group Sues USA Vape Lab For 9 Million Dollars
The Incentive Group Inc., a third-party supplier of employee bonus programs, is suing USA Vape Lab/Naked 100 E-Liquid for $9 million, alleging a breach of contract. You probably know USA Vape, even if you don’t know if – they’re the company behind, among others, the popular Naked 100 line of e-liquids. They’ve recently launched a new line of cigalikes. Incentive, meanwhile, is hired by other companies to create “loyalty programs” – employees are awarded “points” based on their performance that can later be traded in for unspecified merchandise.
Incentive says USA Vape offered its program to 2500 employees, agreeing to pay between $4000 and $12,500 a month and committing up to $10 million over the course of three years for the right to do so. Six weeks later, after about 70 employees had signed up and before any points were awarded, USA Vape pulled the plug on the program, citing “the clear and identified risks we are facing due to the increased attention and regulation that the FDA is placing not only on our company but on our industry as a whole” as a motivation.
Incentive says USA Vape should have known about those risks before signing up for the program, and thus is demanding the contract be honored. Naked 100 E-Liquid is one of the biggest names in vaping so this is a pretty sizable story and we look forward to seeing how it is resolved. We hope this works out in the end because this could turn ugly in court and any blemish on one company is a blemish on the entire industry, we’ll report more on this as more information becomes available.