Hawaii to receive $6.8 million from Juul settlement

The state of Hawaii in the United States will receive $6.8 million from a multi-state settlement with e-cigarette manufacturer Juul Labs to address its role in the youth vaping epidemic in the country.

On Tuesday, Hawaii's Attorney General, Holly T. Shikada, announced a tentative settlement worth $438.5 million between Juul Labs and over 30 U.S. states following a two-year investigation into the company's marketing and sales practices.

This is a "tentative" agreement, which means that the states will finalize the agreement in the next few weeks. If Juul chooses to extend the payments for more than five years, Hawaii's share could increase to more than $7 million.

At a press conference, Shikada stated that young people in Hawaii have been significantly impacted by the nationwide popularity of e-cigarettes. The settlement demands that Juul be held accountable for its targeted and misleading marketing practices, with the aim of preventing more children from becoming addicted to their products.

As part of a settlement agreement, Juul has also agreed to fund educational programs and refrain from marketing to minors, using paid influencers, and selling unapproved branded goods or flavors by the Food and Drug Administration, among many other requirements.

Many anti-tobacco advocates in Hawaii have welcomed the news of a settlement, but they say it is not enough compared to the harm caused to one generation of young people.

Hawaii ranks among the highest in the country for teenage use of electronic cigarettes, with nearly one-third of high school students and approximately one-fifth of middle school students identifying as users.

According to the latest survey on adolescent risk behavior by the Center for Disease Control and Prevention in 2019, the proportion of daily e-cigarette use in the area had exceeded two years.

According to a recent press release from the University of Hawaii Cancer Center, 18% of middle school students are currently using electronic cigarettes. Among the 14 states that collected demographic data, Hawaii ranks number one in the country for this trend.

The center stated that the highest percentage of electronic cigarette users among young people are those of Native Hawaiian or Pacific Islander descent.

Scott Stensrud, the statewide youth coordinator for the Hawaii Public Health Institute, has stated that the percentage of young indigenous and Pacific Islander women in Hawaii has increased to over 45%.

He said that considering this, the $6.8 million settlement agreement paid by Juul to Hawaii is "severely lacking", especially since Juul's revenue in 2019 exceeded $3 billion.

Stenstrup said, "This is not even half of what the CDC recommends Hawaii to spend within a year for prevention and cessation of smoking." "This solution seems more like a slap on the wrist than a message to the industry to keep our keiki away from addiction, as they have already addicted a new generation that may remain addicted to nicotine for life.

Stensrud is awaiting the latest data from the CDC's semi-annual investigation, but he says he's heard from youth throughout the state he works in that the situation will only get worse.

We are hearing from an increasing number of high school principals who want us to come in and give speeches," he said. "There is even demand in elementary schools, so it is getting younger and younger, which is very concerning.

Furthermore, despite Juul pods leaving the market, Stensrud stated that they have quickly been replaced by other brands and products, such as Puff Bar, which have quickly entered the disposable e-cigarette market. This allows children to easily transition from one device to another.

Therefore, HPHI's initiative, "Hawaii Tobacco-Free Coalition," continues to advocate for the prohibition of all flavored tobacco products, including flavored e-cigarette products.

Health advocates say that during a recent state legislature session, a bill that could have accomplished this was passed by both chambers but ultimately defeated by a loophole added by the Senate at the last minute which allows FDA exemptions.

The bill was proposed by Representative Scot Matayoshi but was ultimately vetoed by the governor, who cited flawed loopholes.

This is a victory for the anti-e-cigarette movement, but the amount that Hawaii received from the settlement falls far short of the long-term costs, both in terms of health and education, that underage e-cigarette use has caused," said Matayoshi, who worked on a bill to ban flavored tobacco products for years. "There needs to be a complete ban on flavored e-cigarette products. Allowing nicotine in bubblegum flavors to fall into the hands of children is turning a blind eye to a potential epidemic.

The lawsuit dates back to 2020 when former state attorney general Clare Connaughton filed a lawsuit against the parent company of Philip Morris, as well as Juul Labs and Altria Group, the largest shareholders of Juul.

The lawsuit seeks punishment, compensatory damages, and injunctive relief for violations of Hawaii's Unfair and Deceptive Acts and Practices law.

Alabama, Arkansas, Connecticut, Delaware, Georgia, Idaho, Indiana, Kansas, Kentucky, Maryland, Maine, Mississippi, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, Nevada, Ohio, Oklahoma, Oregon, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Wisconsin, and Wyoming have also signed the agreement.

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