A two-year investigation by dozens of states into how Juul marketed its products has led to a huge settlement…but many other lawsuits still remain.
Juul Labs has agreed to pay $438.5M to settle a long-running investigation by 33 states into the way it marketed its products.
The money will be paid out over the next six to ten years and Connecticut says its $16M share will go towards promoting vape prevention and education.
The huge settlement follows a two-year investigation led by Connecticut, Texas and Oregon, which found that Juul used launch parties, product giveaways and social media posts to target underage teens.
Connecticut Attorney General William Tong said:
“We have secured hundreds of millions of dollars to help reduce nicotine use and forced Juul to accept a series of strict injunctive terms to end youth marketing and crack down on underage sales.
“We have essentially taken a big chunk out of what was once a market leader, and by their conduct, a major offender.”
Juul still faces nine separate lawsuits from other states – including New York, California, Massachusetts and Illinois – as well as more legal claims from hundreds of consumers.
US vape regulator, the Food and Drug Administration, rejected its application to sell flavoured products earlier this year – a move which has been challenged by the manufacturer.
Juul still faces nine more lawsuits brought by other states as well as claims from hundreds of individuals who allege they became addicted to the company’s products.
Under the current settlement, Juul faces restrictions on where its products can be sold in stores and age verification must be used on all sales.
The manufacturer also cannot use cartoons, depict people under 35, pay social media influencers or advertise on public transportation or billboards.
Juul, which has not admitted any wrongdoing, described the settlement as ‘a significant part of our ongoing commitment to resolve issues from the past’ and said the marketing restrictions were consistent with its practices since implementing a ‘companywide reset’ in 2019.
It added:
“We remain focused on our future as we fulfil our mission to transition adult smokers away from cigarettes – the number one cause of preventable death – while combating underage use.”
Juul previously settled lawsuits in Arizona, Louisiana, North Carolina and Washington.
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