Moral dilemma

I reckon just leave the kid alone. It's not like she was doing heavy stuff like ice or worse. It's normal for kids to push the boundaries. She knows that you know and might be stressed that you might say something to her parents thus imagining what the consequences might be.
 
Both Smoking and drinking are not a phase habit. They can be addictive and difficult to kick the habit.

Tell your friend for your friend and her daughter's sake.
 
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