Juul Agrees to Pay $438.5 Million in Settlement with 33 States

Sep.07.2022
Juul Agrees to Pay $438.5 Million in Settlement with 33 States
Juul settles with 33 states for $438.5 million and agrees to stop marketing to youth. Funds will go towards anti-vaping efforts.

E-cigarette company Juul has reached a settlement with 33 states, including Connecticut and Puerto Rico, agreeing to halt certain commercial practices, such as marketing to minors, and pay $438.5 million. The states have stated that the compensation will be used to implement bans on e-cigarettes and reduce nicotine activity.


Connecticut Attorney General William Tong stated in a press release that Juul's advertising campaigns have created a new generation of nicotine addicts.


They ruthlessly sell e-cigarette products to minors, manipulate their chemical composition to cater to non-smokers, use inappropriate age verification procedures, and mislead consumers about the nicotine content and addictive potential of their products. The consequences of this improper behavior on public health are still unclear.


The settlement marks the end of a two-year multi-state investigation. Juul has also agreed to refrain from any sponsorship or naming agreements, cease marketing to all youths, and avoid depicting individuals under the age of 35 in their advertisements.


After an appeal in court in June and reaching a temporary agreement with the U.S. Food and Drug Administration (FDA), Juul has continued to sell its products in the U.S. However, due to FDA regulation and legal battles, the company's market share in the vaping industry has significantly dropped. Back in May 2019, Juul held a dominant 75% market share, but according to VaporVoice, as of June 22, it had dropped to around 34.4%, with competitor Vuse narrowly surpassing Juul in the U.S. Meanwhile, the FDA is pushing for Juul to remove all of its products from U.S. shelves, continuing a thorough safety review of the products.


A spate of illnesses associated with the underground electronic cigarette market across the United States has further damaged Juul's public relations efforts.


In 2019, Juul Labs abandoned a campaign worth $11.6 million aimed at reversing San Francisco's ban on e-cigarette sales. In June 2020, the company announced that it was relocating its headquarters from San Francisco to Washington D.C. and expressed a desire to distance itself from the Silicon Valley startup culture and be closer to politicians and regulators.


According to a report by the Associated Press, Juul is still facing nine independent lawsuits from other states. These include a lawsuit filed by California and Los Angeles in November 2019, which focuses on the company's youth-targeted advertising and alleged failure to warn young consumers about the health risks of vaping. In June, a federal judge in San Francisco allowed a lawsuit against Juul Labs and parent company Altria Group Inc. to proceed on various issues related to misleading marketing.


The Associated Press reports that the company is still facing hundreds of individual consumer lawsuits.


A spokesperson for Juul stated in a press release to the Associated Press, "As we continue to fulfill our mission, we remain focused on our future of transitioning adult smokers from the leading cause of preventable death, combustible cigarettes, while combating underage use.


Statement


This article is sourced from compiled third-party information and is intended for industry communication and learning purposes only.


This article does not represent the views of 2FIRSTS, and 2FIRSTS is unable to confirm the authenticity and accuracy of its content. The translation of this article is solely intended for communication and research within the industry.


Due to limitations in our translation abilities, the translated article may not accurately reflect the original text. Please refer to the original article for accuracy.


2FIRSTS maintains complete alignment with the Chinese government on any statements or positions related to domestic, Hong Kong, Macao, Taiwan, and foreign affairs.


The compiled information belongs to the original media and authors in terms of copyright. If there is any infringement, please contact us for deletion.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

PMI U.S. Launches America250 Initiative, Introduces Limited-Edition ZYN Patriotic Storage Can
PMI U.S. Launches America250 Initiative, Introduces Limited-Edition ZYN Patriotic Storage Can
PMI U.S. launched its America250 initiative on June 1 to commemorate the 250th anniversary of the United States. As part of the program, the company introduced a limited-edition ZYN Patriotic Storage Can and released an IQOS U.S. Edition device. Beyond product-related activities, the initiative also includes innovation funding, nationwide events and community engagement programs.
PMI
Jun.05
Charlie’s Plans Q3 2026 Pilot of America’s First Age-Gated Flavored Disposable Vape
Charlie’s Plans Q3 2026 Pilot of America’s First Age-Gated Flavored Disposable Vape
U.S. vape company Charlie’s Holdings announced plans to pilot its age-gated flavored disposable vape products in hundreds of retail stores during the third quarter of 2026. The company said the products will utilize AI- and blockchain-powered age-verification technology designed to address FDA concerns over youth access and potentially create a new compliance pathway for flavored vape products.
Jun.15
BofA: U.S. Nicotine Market Splits as Vapor Sales Fall 17.2% and Oral Tobacco Rises 5.8%
BofA: U.S. Nicotine Market Splits as Vapor Sales Fall 17.2% and Oral Tobacco Rises 5.8%
According to Investing.com citing Bank of America scanner data for the four weeks ending May 30, U.S. nicotine category performance was mixed, with cigarette, vapor and cigar sales declining while oral tobacco sales rose 5.8%.
Jun.10
Canada Recalls Siberia and ZYN Nicotine Pouches Over Unauthorized Sales
Canada Recalls Siberia and ZYN Nicotine Pouches Over Unauthorized Sales
Health Canada has issued a nationwide recall for nicotine pouch products sold under the Siberia and ZYN brands, citing a lack of market authorization. All affected lots are subject to the recall.
Jun.15
U.S. Convenience Stores Rebalance Backbar as Nicotine Pouches Outpace Cigarettes
U.S. Convenience Stores Rebalance Backbar as Nicotine Pouches Outpace Cigarettes
As cigarette volumes continue to decline, U.S. convenience-store operators are reconfiguring backbar space to accommodate modern oral nicotine products such as nicotine pouches. Industry data show nicotine pouches have become one of the fastest-growing nicotine categories while generating higher margins for retailers.
Jun.12
Philip Morris Korea Names Lee Hong-seok as New CEO Effective May 1
Philip Morris Korea Names Lee Hong-seok as New CEO Effective May 1
Philip Morris Korea said on April 29 that it has appointed Lee Hong-seok, head of its smoke-free products division, as its new chief executive officer, with his term beginning on May 1. Yoon Hee-kyung, who took office in 2023, will step down after about three years in the role.
Apr.30 by 2FIRSTS.ai