CCTV footage has caught the moment when an e-cigarette exploded next to a barmaid Laura Baty's head. Courtesy LiveLeak

YES, e-cigarettes are bad for you.

In a world-first, Australia’s consumer watchdog is taking two e-cigarette makers to court for claiming their products did not contain toxic chemicals — after independent tests proved otherwise.

The Australian Competition and Consumer Commission has commenced separate proceedings against Social-Lites Pty Ltd and Elusion New Zealand Limited for allegedly making false and misleading claims.

It alleges that from at least August 2015, both online retailers claimed their products did not contain carcinogens or toxic chemicals and did not contain any of the chemicals found in conventional cigarettes.

Independent tests commissioned by the ACCC found e-cigarette products sold by both companies in fact did contain carcinogens and toxic chemicals found in conventional cigarettes, including formaldehyde, acetaldehyde and acrolein.

The World Health Organisation has classified formaldehyde as a Group 1A carcinogen, meaning there is sufficient evidence to show it causes cancer in humans.

Acetaldehyde is classified as a Group 2B carcinogen, meaning it is possibly carcinogenic. The WHO classified acrolein as a toxic chemical, and it is listed as a dangerous poison under the Therapeutic Goods Act.

ACCC Chairman Rod Sims told news.com.au he hoped the allegations would “send an immediate warning message to people who are using these products to take a bit of care”.

“This is an emerging market here and a big market overseas. All of the global tobacco companies are moving into e-cigs, so we really felt it was important to get the facts out as quickly as possible,” he said.

“We’re guessing this is a world-first and certainly we’re not aware of any other action like this around the world.”

Mr Sims said the ACCC had identified health claims in advertising as a priority area for its proactive investigations this year.

“We could see fairly strong claims being made, particularly that e-cigarettes were a safer alternative to tobacco smoking — so we decided to look,” he said.

“There were two parts. One was to test the products, and the other was to ask them to substantiate their claims, which I think it’s fair to say in large part we allege they can’t.”

Mr Sims said there was an increasing level of concern among international, national and state authorities regarding the composition of e-cigarettes, and the likely effects of their use.

“It is imperative that suppliers have scientific evidence to support claims that their products do not contain carcinogens and toxic chemicals such as formaldehyde and acetaldehyde,” he said in a statement.

“This is particularly important when, as here, products are designed to be inhaled and are being differentiated from conventional tobacco cigarettes because they are claimed not to contain toxic chemicals.

“The ACCC will continue to work with its local and international counterparts to ensure consumers are receiving accurate information about these products.”

The ACCC also alleges both the chief executive of Social-Lites and the director of Elusion were “knowingly concerned in the alleged contraventions”.

The watchdog is seeking penalties, declarations, injunctions, orders for an Australian Consumer Law compliance program, publication orders and costs.

A spokesman for Social-Lites told news.com.au the statement in question was contained in the text of a video which said “no carcinogens, no tar and no smoke”.

“Although we regret the statement made, we are led to believe that using low-voltage electronic cigarettes like our Premium Electronic Cigarette Starter kit does not produce carcinogens,” he said.

“It’s only when people use higher-voltage vaporisers do carcinogens form. Our Australian e-liquids only contain vegetable glycerin, propylene glycol, Australian food flavouring and no other additives.

“They obviously do not produce smoke or tar as there is no burning of tobacco unlike regular cigarettes.”

The spokesman said Social-Lites was a “very small independent company that realistically cannot afford to fight” the case. “We will be getting some trials done on our Premium Starter Kit and take it from there,” he said.

News.com.au has contacted Elusion for comment.

frank.chung@news.com.au