Vape stores around the country have been caught selling non-compliant Heated Tobacco Products (HTPs) despite new regulations coming into effect on Tuesday.
An undercover sting led by grassroots volunteer group Vape-Free Kids NZ has unveiled more than 20 stores across Auckland, Wellington and Christchurch selling IQOS heated tobacco devices.
It follows calls from health leaders for the prime minister to stand down Associate Health Minister Casey Costello for her "disastrous" tobacco control policy.
Philip Morris has monopolised the HTP market in New Zealand with its IQOS product, where sticks of tobacco are heated to a vapour rather than burned.
RNZ also visited several stores in Christchurch on Wednesday afternoon, with one in Linwood selling IQOS devices and tobacco products.
Another in Papanui also had a large display of IQOS products, however, one staff member intervened on a potential sale because of the regulations.
The staff member then reconsidered a sale as long as the customer "didn't work for the government".
IQOS tobacco products are not compliant with Labour's regulations that forces devices have removable batteries and child safety mechanisms.
The rules came into effect on Tuesday.
Costello slashed the excise tax by 50 percent on HTPs in a bid to encourage people to switch to the product as an alternative to smoking.
However it was revealed earlier on Wednesday that Philip Morris was forced to pull the device from shelves as it was still classified as a vape and therefore did not have the mandatory functions.
Costello tried to have the regulations delayed for two years, however Cabinet only agreed to a six month delay from the original date of 21 March.
Vape-Free Kids NZ said many retailers claimed to be unaware that the devices could not legally be sold.
Some also expected additional deliveries of IQOS products and others stating they had received no information to stop selling or return devices back to their suppliers.
The group's co-founder Charyl Robinson said the fact most retailers were unaware of the legality of the products they were selling was "shocking".
"Illegal products are openly being sold a few streets down from the Beehive with no repercussions,," Robinson said.
"New legislation the government is proposing doesn't go far enough given the two dozen smokefree enforcement officers face the mighty task of policing 8000 vape stores.
"Having caught 20 stores in less than a day and a half attempting to sell IQOS, there could be thousands more stores selling illegal products."
In a sitdown interview with RNZ on Wednesday, Costello said she would release the independent advice she received about what she says are the merits of heated tobacco products being used to help people quit smoking.
Costello said she had never claimed HTPs were safe, "just that they were less harmful than smoking".
Health Coalition Aotearoa said Prime Minister Christopher Luxon needed to take immediate action following a sequence of pro-tobacco industry moves by Costello, at the expense of the taxpayer.
Co-chairperson professor Boyd Swinburn called for Luxon to stand down Costello and reverse the tax cuts on HTP products.
"We have a bizarre situation where the government has put aside $216 million from the health budget for lost tax revenue it would have received from a major tobacco company, Philip Morris, while the products it was intended for are no longer legal," he said.
Health Coalition Aotearoa member and tobacco control expert professor Chris Bullen said the minister had failed to listen to the health warnings of experts and her own officials.
"She has plainly failed to deliver on standards expected of a minister on transparency, integrity and now - competence," he said.
"The associate minister's plan to reduce smoking rates by making another tobacco product cheaper was a dangerous and radical experiment from the start and should never have been approved by Cabinet."