Juul Agrees to Pay $438.5 Million in Settlement

Sep.15.2022
Juul Agrees to Pay $438.5 Million in Settlement
Juul agrees to pay $438.5 million to settle accusations of ineffective age verification system and targeted marketing towards minors.

Multiple lawsuits and investigations have accused Juul of setting up an ineffective age verification system for their products, resulting in 45% of their Twitter followers being between the ages of 13 and 17. As a result, Juul has agreed to a temporary settlement of $438.5 million to resolve the investigation.


Connecticut Attorney General William Tong said at a news conference on Tuesday, "We believe this will largely deter young people from vaping." "We're not under any illusions, nor can we claim it will stop young people from vaping. It's still an epidemic. It's still a huge problem. But we've essentially taken a big piece away from the former market leader.


Suing the state.


34 states, including Alabama, Arkansas, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Kentucky, Maryland, Maine, Mississippi, Montana, Nevada, 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, are filing lawsuits.


Hawaii Attorney General Shikada stated, "The youth in Hawaii have been severely impacted by the national trend of vaping." "This settlement requires JUUL to be accountable for their targeted and misleading marketing, with the aim of preventing more children from becoming addicted to their products.


The settlement agreement will resolve the lawsuit filed against JUUL by Hawaii's Attorney General in 2020. The lawsuit alleges that JUUL used marketing tactics targeted at teens, making their products appear appealing and more addictive than they actually are.


According to a report by Maui Now, the legal action in Hawaii is being represented by the law firms Starn O'Toole Marcus & Fisher from Honolulu and Lieff Cabraser Heimann & Bernstein, LLP from the national level.


As part of the settlement agreement, JUUL has agreed to avoid:


The Youth Marketing Sponsorship Education Program involves the incorporation of comic book-style depictions of individuals under the age of 35 in any marketing campaigns, as well as the paid placement of products to promote the sale of branded merchandise. The use of unapproved fragrances that allow access to websites without age verification on landing pages, as well as misleading statements regarding nicotine content that have not been approved by the FDA, are permitted. However, sponsors and naming rights will not be granted unless 85% of the audience is composed of adults. Advertising placement is restricted to billboards, public transportation, and social media, with the exception of recommendations targeting individuals over 35 without health claims. Paid influencers are allowed to advertise directly to consumers but must first verify their age. Free samples are also permitted.


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