Juul to pay $439m to settle US e-cigarette marketing probe | Business and Economy News

The e-cigarette maker also pledged to limit certain marketing practices, such as the use of cartoons and depictions of users under the age of 35.

E-cigarette maker Juul Labs Inc has agreed to pay $438.5 million to settle claims by 34 US states and territories that it downgraded its products’ risk and targeted underage buyers, several states said.

As part of the agreement announced Tuesday, Juul has agreed to restrict certain forms of marketing, including the use of cartoons, product placement and depictions of users under the age of 35.

The agreement also includes restrictions on where Juul products can be placed in stores, age verification for all sales, and limits for online and retail sales.

The payment stems from a two-year investigation led by Connecticut, Texas and Oregon. $438.5 million will be paid out over a period of six to 10 years.

Connecticut Attorney General William Tong said Connecticut’s payment of at least $16 million would go toward vaping prevention and education efforts.

“I have no illusions and cannot claim that it will stop youth vaping,” Tong said. “It continues to be an epidemic. It continues to be a big problem. But we have essentially eliminated a large portion of what was once the market leader, and by their behavior a major violator.”

The payout accounts for about 25% of Juul’s revenue in the United States, totaling $1.9 billion last year.

Song said it was an “agreement in principle,” meaning the states would finalize the settlement in the coming weeks.

Juul, which did not admit to wrongdoing, called the settlement “an important part of our ongoing commitment to resolving past issues” and said the marketing restrictions were consistent with its practice since it conducted a “company-wide reset” in 2019.

The company at the time withdrew most flavors from the market and halted much of its advertising under pressure from regulators.

“We remain focused on our future as we make it our mission to move adult smokers away from tobacco – the number one preventable cause of death,” Juul said in a statement. be – while also resisting adolescent drug use.

Juul before similar solution claims of Arizona, North Carolina, Louisiana and Washington. Several states, including New York, California, Massachusetts and Illinois, are continuing to pursue claims against the company.

Juul's products
Image of a Juul brand vape dispenser at a store in Atlanta, Georgia [File: Elijah Nouvelage/Reuters]

Teen e-cigarette use skyrocketed in the years following the launch of Juul in 2015, prompting the U.S. Food and Drug Administration (FDA) to declare an “epidemic.” vaping in adolescence. Health experts say the unprecedented rise threatens to lure a generation of young adults into nicotine.

But as of 2019, Juul has largely retreated, dropping all American advertising and pulling fruit and candy flavors from store shelves. Juul originally sold high-nicotine pods in flavors like mango, mint, and creme.

These products have become a scourge in American high schools, with students steaming in bathrooms and hallways between classrooms.

Thousands of local governments and individuals have also brought lawsuits against the company, most of which have been consolidated in federal court in San Francisco, California.

The first trial is set for November in a case brought by the San Francisco school district. The next trial, scheduled for January, will hear a case brought by the family of a Tennessee teenager who is accused of being addicted to Juul’s e-cigarettes.

FDA in June in a nutshell forbidden products, although it puts ban pause and agree to reconsider after the company appeals.

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