After more than 35 states joined forces to investigate Juul Labs, Juul Labs agreed to a $438.5 million settlement, citing the company’s sales and marketing strategies as a major cause of the nation’s teenage e-cigarette crisis. I have resolved the claim that there is.
As part of the settlement, Juul Labs has denied wrongdoing, but as it awaits the U.S. Food and Drug Administration (FDA) to determine whether it can continue to market its products, it said in a statement Tuesday: said like They hoped to “solve past issues,” adding that the terms of the deal “are consistent with current business practices that we began implementing after the company-wide reset in the fall of 2019.”
Juul positions itself to help cigarette smokers quit and transition to what they consider to be less harmful alternatives. “We remain focused on the future as we continue to fulfill our mission of moving adult smokers away from tobacco, the number one cause of preventable deaths, while combating underage use. they said.
At the peak of the e-cigarette crisis a few years ago, the company stopped selling flavored pods that generally appealed to teenagers and tweaked its marketing practices to appeal to worried children. , parents, doctors and government officials.
Before being “reset” in 2019, Juul’s marketing tactics included social media campaigns, launch parties and free product samples, said Texas Attorney General Ken Paxton.
As part of the settlement, Juul Labs will make several changes, including more restrictive marketing to people under the age of 35, being completely honest about the nicotine content of its products, and not allocating funds for education in schools. Conditions must be observed. .
The study found that, as outlined by Connecticut Attorney General William Tong, Juul included mostly young models in its ads, with almost 50% of its social media followers made up of minors between the ages of 13 and 17. It turns out that the age verification system is “full of holes”. for consumers.
Other questionable behavior on behalf of the company was highlighted by Virginia Attorney General Jason Myares, which is much easier to hide than other e-cigarette alternatives.
This past June, the FDA banned Juul from selling cartridges and vape products and revoked its marketing authorization.In July, the FDA temporarily suspended the ban after Juul Labs appealed the decision. did. Previously, the institute was banned from promoting its products on Instagram or from selling flavored “pods” or cartridges. is reviewing the company and is still for sale.
The company has settled this lawsuit and several others, but there are still nine significant lawsuits pending. I am considering a lawsuit.
The $438.5 million settlement will be paid by Juul Labs over six to 10 years. At this time, states vary in how they use their share of the settlement. About $16.2 million in Connecticut stock will fund e-cigarette and nicotine prevention, education and treatment, Attorney General Ton said. Texas expected to receive approximately $43 million and Virginia approximately $16.6 million from the settlement. Other states have also expressed their intention to contribute to preventative measures related to e-cigarettes and tobacco consumption.
The states and territories involved in the settlement include Alabama, Arkansas, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Kentucky, Maryland, Maine, Mississippi, Montana, Nevada, North Dakota, Nebraska, New Hampshire, New Jersey, Nevada, Ohio, Oklahoma, Oregon, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Wisconsin, Wyoming.
