HARTFORD, Connecticut — E-cigarette maker Juul Labs will pay nearly $440 million to settle a two-year investigation by 33 states into the marketing of its high-nicotine products, which has long been blamed for sparking a national boom in teen vaping.
Connecticut Attorney General William Tong announced the deal Tuesday on behalf of the states plus Puerto Rico, which joined together in 2020 to investigate Juul’s early promotions and claims about the safety and benefits of its technology as a smoking alternative.
The settlement solves one of the biggest legal threats facing the embattled company, which still faces nine separate lawsuits from other states. Additionally, Juul faces hundreds of personal lawsuits filed on behalf of teens and others who say they have become addicted to the company’s vaping products.
A state investigation found that Jules Marketing of e-cigarettes to underage teens With launch parties, product giveaways, advertisements and social media posts using young female models, according to the statement.
“Through this settlement, we have secured hundreds of millions of dollars to help reduce nicotine use and forced Juul to accept a series of stringent injunctive terms to end youth marketing Tong said in a press release.
Read more: ‘It’s Insidious’: How Juul Passed E-Cigs to Native American Tribes
$438.5 million will be paid out over six to 10 years. Tong said the Connecticut payments of at least $16 million will go towards vaping prevention and education efforts. Juul has previously settled lawsuits in Arizona, Louisiana, North Carolina and Washington.
Most of the restrictions imposed by Tuesday’s settlement will not affect the practices of Juul, which halted the use of parties, gifts and other promotions after they came under scrutiny several years ago.
Teens’ use of e-cigarettes skyrocketed after the launch of Juul in 2015, prompting the U.S. Food and Drug Administration to declare an “epidemic” of underage e-cigarette smoking among teens. Health experts said the unprecedented increase threatens to associate a generation of young people with nicotine.
But since 2019, Juul has mostly been on the decline, dropping all-American ads and pulling fruit and candy flavors from store shelves.
The biggest blow came earlier this summer when the Food and Drug Administration moved to Ban all Juul e-cigarettes from the market. Juul challenged that ruling in court, and the U.S. Food and Drug Administration has since reopened its scientific review of the company’s technology.
The FDA review is part of a sweeping effort by regulators to force scrutiny on the multibillion-dollar e-cigarette industry after years of regulatory delays. The agency has allowed a small number of e-cigarettes to adult smokers who are looking for a less harmful alternative.
While Juul’s early marketing focused on Young urban consumersThe company has since switched to promoting its product as an alternative source of nicotine for older smokers.
“We remain focused on our future as we fulfill our mission to move adult smokers away from cigarettes – The number one cause of preventable death – In the context of combating the use of minors,” the company said in a statement.
Read more: It is very easy to describe Juul Ban as a victory for public health
Juul agreed to refrain from a range of marketing practices as part of the settlement. They include not using cartoons, paying social media influencers, portraying people under 35, advertising on billboards and public transportation, and placing ads in any outlets unless 85% of their audience is adults.
The deal also includes restrictions on where Juul products are placed in stores, age verification on all sales and limits on online and retail sales.
Juul initially sold its high-nicotine capsules in flavors such as mango, mint, and cream. The products have become a disaster in American high schools, with students vaping in bathrooms and hallways between classes.
But recent federal survey data shows teens are turning away from the company. Most teens now prefer single-use e-cigarettes, some of which continue to be sold in sweet and fruity flavors.
Overall, the survey showed a nearly 40% reduction in the rate of teen vaping, with many kids forced to learn from home. during the pandemic. However, federal officials cautioned against interpreting the results because they were collected online for the first time, rather than in the classroom.
Peroni reported from Washington, D.C.
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