Juul Labs will pay roughly $440 million to settle a two-year probe by 33 states into the marketing of its high-nicotine vaping products, which have long been blamed for a national increase in teen vaping.
The agreement was announced Tuesday by Connecticut Attorney General William Tong on behalf of the states and Puerto Rico that joined forces in 2020 to investigate Juul’s early advertising and claims about the safety and benefits of its technology as a smoking replacement.
The settlement eliminates one of the most significant legal risks confronting the troubled firm, which still faces nine lawsuits from other states. In addition, hundreds of individual lawsuits have been filed against Juul on behalf of minors and others who claim to have been addicted to the company’s vaping products.
According to a statement, the state inquiry discovered that Juul advertised its e-cigarettes to minors through launch parties, product freebies, and advertisements and social media posts featuring young models.
Tong stated in a press release, “Through this settlement, we have obtained hundreds of millions of dollars to assist reduce nicotine use and forced Juul to adopt a series of stringent injunctive restrictions to prohibit adolescent marketing and crack down on underage sales.”
JUUL aggressively advertised vaping goods to minors, altered their chemical makeup to make them more attractive to novice users, implemented an insufficient age verification mechanism, and deceived consumers about the nicotine level and addictiveness of its products.
— Assistant Attorney General William Tong (@AGWilliamTong) on September 6, 2022
The $438,500,000 will be disbursed over a period of six to ten years. Tong stated that at least $16 million of Connecticut’s contribution will go toward vaping prevention and education activities. Juul has settled cases in Arizona, Louisiana, North Carolina, and Washington in the past.
Juul eliminates sweet and fruit flavors
The majority of the restrictions imposed by Tuesday’s settlement will have little impact on Juul’s tactics, which have ceased using parties, giveaways, and other promotions after years of scrutiny.
The U.S. Food and Drug Administration declared a “epidemic” of underage vaping among adolescents following the 2015 launch of Juul, when teen e-cigarette use soared. According to health experts, the unprecedented surge posed a risk of addicting a generation of young people to nicotine.
Juul has mostly retreated since 2019, ceasing all U.S. advertising and removing its fruit and candy flavors from shop shelves.
The FDA’s decision earlier this summer to ban all Juul e-cigarettes from the market was the heaviest blow. This verdict was challenged in court by Juul, and as a result, the FDA has reopened its scientific examination of the company’s technology.
After years of regulatory delays, the FDA’s inquiry is part of a comprehensive effort by authorities to scrutinize the multibillion-dollar vaping sector. The EPA has allowed a small number of electronic cigarettes for adult smokers seeking a safer alternative.
Initially, Juul marketed its product to urban youth, but the business has recently turned its focus to older users as an alternate nicotine supply.
The firm stated in a statement, “We remain focused on our future as we fulfill our purpose to transition adult smokers away from cigarettes — the leading preventable cause of death — while preventing underage usage.”
No cartoons
As part of the settlement, Juul has agreed not to engage in a number of marketing techniques. They include not employing cartoons, not paying social media influencers, not showing persons under the age of 35, not promoting on billboards and public transit, and not posting advertisements in any medium unless 85 percent of the audience is comprised of adults.
The agreement also includes restrictions on the placement of Juul products in stores, age verification for all purchases, and restrictions on online and retail sales.
Juul’s initial high-nicotine pod tastes included mango, mint, and cream. Students vaping in toilets and halls between classes became an epidemic in American high schools.
The results of a recent federal study indicate, however, that adolescents are migrating away from the corporation. The majority of adolescents now prefer disposable e-cigarettes, some of which are still available in delicious flavors.
As a result of the pandemic, many adolescents were compelled to learn vaping at home, resulting in a nearly 40 percent decline in the teen vaping rate. Officials from the federal government cautioned against interpreting the findings because they were collected online for the first time, rather than in classrooms.
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