San Francisco Reaches $1 Million Settlement With Lucy Goods
The San Francisco City Attorney’s Office announced a $1 million settlement with nicotine pouch brand Lucy Goods, Inc., requiring the company to cease shipping illegal tobacco products to San Francisco. Previously, Rogue Holdings LLC, Swisher International, Inc., and Northerner Scandinavia, Inc. had already paid nearly $3 million to San Francisco.
Key Points at a Glance
- Location: San Francisco, California, USA.
- Lawsuit Background: Lawsuit filed in September 2024 against multiple nicotine pouch sellers, involving flavored nicotine pouches and other flavored tobacco products.
- Court Proceedings: San Francisco Superior Court issued a stipulated judgment and injunction against Lucy Goods, Inc. on January 6, 2026.
- Cumulative Result: The case has resulted in nearly $4 million in fines and fees; other defendants previously agreed to pay nearly $3 million.
City Attorney Announces Settlement
January 8, 2026 – According to the San Francisco City Attorney’s Office. San Francisco City Attorney David Chiu announced that his office has reached a $1 million settlement requiring nicotine pouch retailer Lucy Goods, Inc. to cease shipping illegal tobacco products to San Francisco.
Lawsuit Over Alleged Violations of Flavored Tobacco Ban
The settlement stems from a lawsuit filed by the City of San Francisco in 2024, alleging that multiple nicotine pouch retailers violated San Francisco’s flavored tobacco ban by illegally selling flavored nicotine pouches to San Francisco consumers.
Nearly $4 Million Collected Through Enforcement Actions
The announcement stated that the San Francisco City Attorney’s Office had already reached stipulated judgments and injunctions with other defendants in the case in October 2025. The lawsuit has cumulatively generated nearly $4 million in fines and fees in enforcing San Francisco’s flavored tobacco ban.
City Cites Youth Tobacco Use Concerns
In a statement, David Chiu said that with the rising popularity of flavored nicotine pouches. San Francisco has banned all flavored tobacco products, including nicotine pouches, and online tobacco retailers are prohibited from shipping banned products to San Francisco.
According to the 2023 California Youth Tobacco Survey. The majority of high school respondents who used tobacco reported using flavored tobacco products, and “nicotine pouches” were the second most common form of tobacco use among eighth-grade students in California.
Defendants Named in September 2024 Lawsuit
In September 2024, David Chiu sued Lucy Goods, Inc., Rogue Holdings LLC, Swisher International, Inc., and Northerner Scandinavia, Inc., alleging that they illegally sold various flavored nicotine pouches directly to San Francisco consumers through their websites, in violation of San Francisco’s flavored tobacco ban and California’s Unfair Competition Law.
Court Orders Lucy Goods to Pay Penalties and Change Practices
On January 6, 2026, the San Francisco Superior Court issued a stipulated judgment and injunction against Lucy Goods, Inc., requiring the company to pay San Francisco $1 million in civil penalties and attorney fees, and prohibiting it from using San Francisco addresses in shipping or billing fields.
The company was also required to post clear language on its website stating that flavored tobacco products cannot be sold in San Francisco.
Prior Settlements With Other Nicotine Pouch Sellers
Previously, the City of San Francisco reached stipulated judgments with the other defendants, requiring Rogue Holdings LLC, Swisher International, Inc., and Northerner Scandinavia, Inc. to pay nearly $3 million to San Francisco.
