Sep 23, 2024

JUUL Reaches Nearly $440M Settlement With 33 States

by Nadia El-Yaouti | Sep 15, 2022
Juul pods and products Photo Source: Adobe Stock Image

E-cigarette maker, JUUL Labs inc., has reached a $438.5 million settlement over charges that the company marketed its product to underage children.

The massive settlement was agreed to by 33 or about two-thirds of the states that brought forward claims against the company. The states accused the e-cigarette maker of “relentlessly” marketing their products to the most vulnerable of audiences. Their marketing tactics went against the company's claims that they were providing an alternative product for smokers to use instead.

As part of their marketing tactics, the company drew in the interest of underage kids by touting vape fluid flavors such as bubblegum and other fruity flavors. Using strategic social media marketing, the company was also able to target teens and younger populations through colorful imagery that depicted younger models using such fruity flavors.

The two yearslong investigation into JUUL’s marketing revealed startling information about how far the company went to attract younger populations. Reports indicate that at one point, the company bought ad space on networks that were meant for underage kids and teens. These networks include the Cartoon Network, Nickelodeon, and a handful of kid's websites.

The rise of e-cigarettes, in conjunction with these targeted marketing tactics, led to a sharp rise in vaping and e-cigarette use among students in middle school and high school. Many of these lawsuits focus on research that indicates that the fluids in the vape cartridges contained just as much if not more levels of nicotine than regular cigarettes. These high levels of nicotine would often prompt users to be addicted. A number of lawsuits have been filed by both young adults and parents of underage children who were impacted by the addictive nature of vaping.

This latest settlement is just one of several settlements that have been brought against JUUL from different states and individuals. However, this settlement is the largest of them yet.

The 33 states that have agreed to the settlement will see payment over the next six to ten years. Last year, the company agreed to a settlement totaling $87 million with four states that brought forward similar claims.

There are still thousands of other pending lawsuits against the company including nine brought forward by other state attorneys general.

Along with the settlement, the company has agreed to stop marketing its products to people under age 35. There will be a limit on store displays and end limits on online and retail sales. There will also be a retail compliance check protocol JUUL will have to adhere to.

Following the announcement, the company shared that this settlement is their attempt to resolve issues from the past. The company also shared their hopes for the future.

“We believe that once the FDA does a complete review of all of the science and evidence presented, as required by law, and without political interference, we should receive marketing authorization. As we go through the FDA’s administrative appeals process, we continue to offer our products to adult smokers throughout the U.S.”

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Nadia El-Yaouti
Nadia El-Yaouti
Nadia El-Yaouti is a postgraduate from James Madison University, where she studied English and Education. Residing in Central Virginia with her husband and two young daughters, she balances her workaholic tendencies with a passion for travel, exploring the world with her family.