Juul Labs Inc., the leading e-cigarette maker, has agreed to pay $462 million to settle lawsuits filed by six US states and the District of Columbia, accusing the company of marketing its products to underage vapers. The settlement, which Juul denies any wrongdoing, requires the company to place its products behind retail store counters and verify the age of consumers that sell or promote products online.
California and New York will receive the largest payments, with $175.8 million and $112.7 million, respectively. Both states said they will use the funds to support youth vaping prevention efforts.
Juul had been the most recognizable brand in vaping, and the states alleged the company targeted underage vapers. The company had previously settled with 47 states and territories for over $1 billion.
Teen vaping reached all-time highs in 2019 when more than one quarter of high school students used nicotine-delivering devices. The 2022 survey showed 14.1% of high school students and 3.3% of middle school students vaped at least once over the past 30 days.
Juul said the settlement with six states and the District of Columbia reflects the company's "current business practices, which were implemented as part of our company-wide reset in the fall of 2019. Since then, underage use of Juul products has declined by 95% based on the National Youth Tobacco Survey."
The settlement provides funds to "combat underage use and develop cessation programs," said the company.
Juul took a "page out of big tobacco’s playbook" and misled consumers about the health risk of their products, said New York Attorney General Letitia James. "Just one pod of Juul contains as much nicotine as a whole pack of cigarettes," she added.
In at least one New York City school, a Juul representative falsely told high school freshman that its products were safer than cigarettes, James said.
Juul's settlement with six states and the District of Columbia represents another critical part in the company's ongoing commitment to resolve issues from its past, said Juul.
Juul pays $462 million to settle with six states and the District of Columbia
Juul has agreed to pay $462 million to settle with six US states and the District of Columbia over allegations it marketed its products to underage vapers. The settlement requires Juul to place its products behind retail store counters and verify the age of consumers that sell or promote products online.
The teen vaping crisis
Teen vaping reached all-time highs in 2019 when more than one quarter of high school students used nicotine-delivering devices. The 2022 survey showed 14.1% of high school students and 3.3% of middle school students vaped at least once over the past 30 days.
Juul misled consumers about the health risk of its products
New York Attorney General Letitia James accused Juul of taking a "page out of big tobacco's playbook" and misleading consumers about the health risk of its products. James said one Juul pod contains as much nicotine as a whole pack of cigarettes.
Juul's commitment to combat underage use and develop cessation programs
Juul said the settlement with six states and the District of Columbia reflects the company's "current business practices, which were implemented as part of our company-wide reset in the fall of 2019. Since then, underage use of Juul products has declined by 95% based on the National Youth Tobacco Survey."
California and New York to receive the largest payments
California and New York will receive the largest payments, with $175.8 million and $112.7 million, respectively. Both states said they will use the funds to support youth vaping prevention efforts. This multistate settlement has been praised by Robin Koval, CEO and President of the Truth Initiative, for providing "hard-won funds to educate young people, prevent them from ever starting to use tobacco products and help them stop if they do."
Juul's settlement with six states and the District of Columbia is the largest settlement with states announced to date. The company had previously settled with 47 states and territories for over $1 billion. Last year, the FDA sought to ban Juul's vaping and e-cigarette products, but the ban was paused less than two weeks later to allow for additional review.
The settlement requires Juul to verify the age of consumers that sell or promote products online, as well as place its products behind retail store counters. Juul's agreement to pay $462 million to settle with six US states and the District of Columbia represents another critical part in the company's ongoing commitment to resolve issues from its past. The company has also pledged to combat underage use and develop cessation programs.
In conclusion, the settlement by Juul to pay $462 million to six US states and the District of Columbia over allegations of marketing to underage vapers is a significant milestone in the vaping industry. It reflects the ongoing commitment of the company to resolve issues from its past and combat underage use of its products. The settlement requires Juul to place its products behind retail store counters and verify the age of consumers that sell or promote products online.
FAQs
What was Juul accused of?
Juul was accused of marketing its products to underage vapers by six US states and the District of Columbia.How much will Juul pay to settle with six US states and the District of Columbia?
Juul will pay $462 million to settle with six US states and the District of Columbia.Will Juul be required to verify the age of consumers that sell or promote products online?
Yes, as part of the settlement, Juul will be required to verify the age of consumers that sell or promote products online.How will the funds from the settlement be used?
California and New York, the states receiving the largest payments, said they will use the funds to support youth vaping prevention efforts.What is Juul's response to the settlement?
Juul denies any wrongdoing and said the settlement reflects the company's commitment to combat underage use and develop cessation programs.
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