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A national online "mega-raffle" run by a group of about 66 electronic cigarette businesses has been shut down by NSW authorities because it breached state laws.

The group "Aussie Vape Vendors" was raising funds for Australian Tobacco Harm Reduction Association (ATHRA), a charity lobbying for the legalisation of e-cigarettes containing nicotine, which had been "actively seeking donations" ahead of a campaign to coincide with the rise in the tobacco excise on September 1.