In 2020, a group of 33 US states and Puerto Rico joined forces to seek compensation from Juul. The lawsuit was led by Texas, Oregon, and Connecticut, with assistance from Alabama, Arkansas, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Kentucky, Maryland, Maine, Mississippi, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, Nevada, Ohio, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Virginia, Vermont, Wisconsin, and Wyoming.
Connecticut Attorney General William Tong has accused Juul of marketing e-cigarette products to underage individuals, using flavors to entice teenagers, and inadequate age verification processes, all while potentially misleading consumers about the nicotine content and addictive nature of their products.
On September 6, 2022, a court settlement agreement was reached in which Juul has agreed to pay $438.5 million to 33 states in the United States and Puerto Rico (approximately 3.039 billion yuan). As part of the settlement agreement, each state will receive a different amount of money. The amounts known at this time are $42.8 million for Texas, $16.2 million for Connecticut, $18.8 million for Oregon, $7 million for Hawaii, and $6.18 million for South Dakota. Juul will pay the $438.5 million over a period of 6 to 10 years. If there are delays, the final amount could be increased to $476.6 million.
As part of the agreement, Juul is prohibited from participating.
The Youth Marketing Sponsorship Education Program prohibits the use of models under the age of 35 (or ones who appear to be 35) in advertisements, as well as the insertion of paid product placements for unapproved flavored electronic cigarettes. Additionally, it prohibits minors from accessing websites without age verification, and any misleading statements about nicotine content in unapproved advertisements subject to FDA approval. Furthermore, sponsorship/naming rights cannot advertise in public places such as transportation or social media, and free samples are prohibited.
Currently, each state is finalizing a peace agreement, which is expected to be completed within one month.
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