Juul Gets Temporary Reprieve to Keep Selling Its E-Cigarettes

Industry InsightMarket
Jun.27.2022
The F.D.A. is not seeking a blanket ban on all vaping brands, and Juul users could switch to other e-cigarettes that have been approved for sale by the agency.Credit...Joshua Bright for The New York Times

A federal appeals court on Friday granted a temporary reprieve to Juul Labs that will allow it to keep its e-cigarettes on the market, pending further court review of a decision just a day earlier by the Food and Drug Administration to ban sales of the company’s products.

 

The United States Court of Appeals for the District of Columbia issued a temporary stay that had been sought by Juul. The brief order by the appeals court cautioned that the stay was “ should not be construed in any way as a ruling on the merits.”

 

The stay involves the F.D.A.’s order on Thursday, when the agency said Juul had to stop selling its products because it had provided conflicting and insufficient data that prevented the F.D.A. from assessing the potential health risks of its products.

 

What’s the next step for Juul?

 

It will be up to the appeals court to decide whether Juul should continue to be allowed to sell its products while the company pursues its appeal of the F.D.A.’s decision. The court gave Juul until Monday at noon to file an additional motion, and it gave the F.D.A. until July 7 to file a motion in response.

 

In its emergency filing for a stay, Juul argued that the F.D.A.’s decision to ban sales was motivated by political forces that sought to blame the company for the youth vaping crisis. The F.D.A. issued the ruling against Juul “after immense political pressure from Congress,” the filing reads, “even though several of its competitors now have a larger market share and much higher underage-use rates.”

 

However, the F.D.A. did not cite underage use in its decision to ban Juul from the market. Rather, the agency said Juul had not provided sufficient evidence that its product prevents leaching of chemicals from the device to the nicotine vapor that users inhale.

 

Will Juul users still be able to buy the company’s pods and e-cigarettes?

 

As long as the stay is in force, consumers will be able to buy Juul cartridges and its tobacco and menthol-flavored pods. The F.D.A. had warned that retailers selling Juul products would be subject to enforcement action at some point but not while a stay is in place.

 

In its court filing, Juul pointed out that the agency’s decision had “already had its intended effect,” indicating that some retailers had stopped selling Juul products.

 

Will I still be able to buy other e-cigarette products?

 

The F.D.A. is not seeking a blanket ban on all vape products. As part of its new regulatory authority over so-called electronic nicotine delivery systems, or ENDS, the agency has been reviewing applications for millions of products. It has already granted approval to 23 of them, including products made by R. J. Reynolds, NJoy and Logic. (Applications for a million other products have been denied.)

 

As part of its review, the agency must consider whether a product is a viable alternative to combustible tobacco that can help cigarette smokers quit, and that the benefits to public health outweigh the harm.

 

What are the best-selling e-cigarettes still on the market?

 

According to data from Nielsen, the top-selling vaping brand in the U.S. over the past 12 weeks was a Vuse product, which earned $414 million in sales and had 33.4 percent of the overall e-cigarette market. A close second was Juul, with a 33-percent market share. None of the other brands came close to these two companies; the next best-sellling brand, NJoy Ace, accounted for just 2.4 percent of the market.

 

How does the tobacco industry stack up against vaping?

 

The cigarette industry in the United States brought in about $99 billion in revenue last year, compared to $7.8 billion for vaping products like Juul, according to Euromonitor, a data research firm. But sales of tobacco are declining: Euromonitor estimates that cigarette sales will fall by about 13 percent through 2026, while vaping products are expected to grow by about 22 percent. Altria, the tobacco giant that took a 35-percent stake in Juul in 2018, reported that its sales fell slightly last year, according to regulatory filings.

 

There are an estimated 30 million smokers of traditional cigarettes in the U.S., a number that has been in decline for decades.

2Firsts Holds Second PMTA Compliance Training in Shenzhen, Highlighting U.S. Regulatory Framework and Corporate Compliance Capabilities
2Firsts Holds Second PMTA Compliance Training in Shenzhen, Highlighting U.S. Regulatory Framework and Corporate Compliance Capabilities
2Firsts held its second U.S. PMTA compliance training in Shenzhen, providing a systematic overview of the U.S. regulatory framework for e-cigarettes and corporate compliance strategies. Nearly 20 industry professionals from manufacturing, e-liquid and supply-chain companies attended. Participants who passed the exam received compliance certification. Registration for the third training session will open soon, alongside customized corporate training programs.
Mar.09
Study Says Europe’s Illicit Disposable Vape Market to Reach EUR 6.6 Billion in 2026
Study Says Europe’s Illicit Disposable Vape Market to Reach EUR 6.6 Billion in 2026
A new study by the Fraunhofer Institute says the rapidly expanding illicit market for disposable e-cigarettes is undermining European regulation, fuelling youth vaping and causing significant tax losses. The study says the illicit market is worth EUR 6.6 billion in 2026 and is projected to rise to EUR 10.8 billion by 2030. It adds that a significant share of the disposable vape market now operates outside the regulatory framework established by the EU Tobacco Products Directive.
Mar.13 by 2FIRSTS.ai
Pakistan Senate health panel weighs possible vape ban
Pakistan Senate health panel weighs possible vape ban
Sources say Pakistan’s Senate Standing Committee on Health is deliberating whether to impose a ban on vaping products, after holding a meeting on the health implications of vaping and the rising use of e-cigarettes nationwide.
Mar.04 by 2FIRSTS.ai
From Tamarind’s AI Shift to Industry Restructuring, The ‘Amazon Moment’ for Nicotine Is Approaching
From Tamarind’s AI Shift to Industry Restructuring, The ‘Amazon Moment’ for Nicotine Is Approaching
Tamarind Intelligence’s decision to appoint a technology-sector executive as chief executive officer signals more than a leadership reshuffle at a specialist data firm. It reflects a broader structural shift across the global nicotine industry, where companies, regulators and intelligence providers are embedding artificial intelligence into core operations.
Special Report
Feb.18
South Korea Postal Service Launches Heated Tobacco Device Recycling Program Through Nationwide Post Offices and Mailboxes
South Korea Postal Service Launches Heated Tobacco Device Recycling Program Through Nationwide Post Offices and Mailboxes
Korean postal system launches nationwide heated tobacco device recycling through post offices and mailboxes, aiming to increase recycling rates.
Feb.10 by 2FIRSTS.ai
PMI U.S. to Invest About USD 50 Million in New Business Solutions Center in Tampa
PMI U.S. to Invest About USD 50 Million in New Business Solutions Center in Tampa
On March 17, PMI U.S. announced an investment of about USD 50 million in a new Business Solutions Center in Tampa, Florida. The center is expected to create about 180 direct and indirect high-skilled jobs and will consolidate business solutions, distribution operations and customer service into one hub.
Mar.18 by 2FIRSTS.ai