A two-year inquiry into the e-cigarette manufacturer’s marketing and sales techniques has concluded with the $438.5 million agreement with Juul Labs. The settlement would require Juul to adhere to several stringent injunctive requirements severely restricting its marketing and sales tactics in addition to the financial conditions.
As part of an agreement with 34 states over the way it promoted its vaping devices, Juul agreed to pay close to half a billion dollars on Tuesday.
In addition, the business falsely claimed that their product was a tool for quitting smoking that did not need U.S. According to the inquiry, such claims need to be approved by the Food and Drug Administration.
Juul stated that “this settlement with 34 states and territories is an important element of our continuous effort to rectify concerns from the past.” “The terms of the agreement are compatible with our existing business practices which we started to apply after our company-wide reset in the Fall of 2019.”
Youth smoking of conventional cigarettes has drastically decreased, but youth vaping is surging, undercutting government efforts to reduce tobacco consumption. According to the National Kids Tobacco Survey, carried out in 2019 by the Centers for Disease Control and Prevention and the U.S. Food and Drug Administration, more than 5 million youth reported using e-cigarettes during the previous 30 days, up from 3.6 million the year before.
The study revealed that Juul persistently targeted consumers under the legal age of 18 with launch events, commercials featuring young, fashionable models, social media posts, and free samples. It advertised a technology-focused, sleek, concealable design and offered its product in flavors known to appeal to underage consumers. According to the investigators, Juul also changed the chemical makeup of its product to make the vapor less harsh on the throats of young and inexperienced users.
The research also showed that Juul’s original packaging was deceptive since it claimed that the nicotine content was lower than it was and failed to disclose that it contained nicotine. Additionally, consumers were misled into thinking that ingesting one Juul pod was the same as smoking one pack of cigarettes.
Juul gained a reprieve to continue sales despite the FDA’s announcement earlier this year that it was withdrawing its products from the U.S. market. While the FDA considers whether to approve Juul devices as a smoking cessation product, the stay will continue to be in effect.