Juul Will Pay States Close to $440 Million in Vaping Settlement
The agreement is a result of a two-year investigation into Juul's marketing and sales practices.
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Juul, an electronic cigarette maker famous for its vape pens, is set to pay $438.5 million to 34 states in a settlement over an investigation into Juul's marketing toward young people, according to different announcements Tuesday from state attorney general offices.
As part the arrangement, Juul has also agreed to stop funding education programs, to no longer depict people under the age of 35 in advertisements, to not use paid influencers in ads and more.
"Youth vaping is an epidemic, and from the get-go Juul has been a leader in the e-cigarette industry," Virginia Attorney General Jason Miyares said in a news release. "But Juul targeted young people with deceptive social media advertising campaigns and misled the public about the product's dangers."
E-cigarettes were initially marketed toward former smokers to help them avoid the harmful effects of real cigarettes; they work by converting liquid nicotine into vapor. But experts have warned that the smooth delivery of a high nicotine content, packaged in a sleek design, may promote nicotine addiction in younger people. Juul specifically has been reprimanded by the FDA in the past for promoting the company's products as safer than other tobacco products.
Juul said in a statement Tuesday that the settlement is a "significant part of our ongoing commitment to resolve issues from the past" and that the agreement is aligned with current business practices which the company started implementing in 2019.
"We remain focused on the future as we work to fulfill our mission to transition adult smokers away from cigarettes – the number one cause of preventable death – while combating underage use," Juul said.
Juul has been fighting hard to stay on the market in the US. In June, the US Food and Drug Administration denied Juul's application to sell in the US. Following a temporary stay on the order by a federal appeals court, the FDA put its ban on hold, allowing Juul to sell in the US while the health agency reviews the "scientific issues" unique to Juul's application to stay on the market.
Last summer, North Carolina won a $40 million settlement against Juul, also centered on the e-cigarette's company appeal to teenagers. The New York Times reports that major lawsuits including some from California and New York against Juul are still pending.