Juul Labs reaches $438.5 million settlement over youth marketing

Photo credit: Seth Wenig, The Associated Press.

Portland, Oregon (KOIN) - On September 6th, Oregon Attorney General Ellen Rosenblum announced a multi-state settlement agreement worth $438.5 million with e-cigarette company Juul Labs.

This settlement is the result of a two-year investigation by both parties into the marketing and sales practices of the company. Officials claimed that these practices mercilessly targeted children. In addition to paying billions of dollars, JUUL has also agreed to comply with strict prohibitions on company marketing and sales practices.

Both the pilot and passengers have been confirmed to have died in the crash of a seaplane in Phuket Bay. In a recent announcement, multi-state investigations have shown that JUUL intentionally participated in an advertising campaign that targeted young people, despite their e-cigarettes being illegal and unhealthy for children. The investigation found that JUUL mercilessly marketed to underage users through party promotions, the use of young and fashionable models in ads, social media posts, and free samples.

An investigation has confirmed that JUUL has been targeting children by releasing parties, using young and trendy models, social media posts, and free samples. Reports claim that the e-cigarette models are "stylish" and "easy to hide", with attractive flavors for children. It has also been reported that the company manipulated the chemical composition of their products to make them less harsh for inexperienced e-cigarette users.

An investigation has concluded that JUUL has misled consumers of all ages regarding the nicotine content of the product and its effectiveness as a smoking cessation tool, all without approval from the FDA.

According to Rosenblum, "the actions that led to this settlement should be condemned and clearly demonstrate pure corporate greed to the maximum extent." "Just as we were making significant progress in reducing tobacco use among young people, JUUL appeared and attracted another generation. They intentionally targeted children with flashy and misleading advertising to lure them into using their nicotine products. The social costs and public health consequences are immense and devastating.

Oregon, which is jointly leading an investigation with Connecticut and Texas, will receive a settlement of $18.8 million, but could potentially receive up to $20.5 million if JUUL extends its payment schedule.

The states of Alabama, Arkansas, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Kentucky, Maryland, Maine, Mississippi, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, Nevada, Ohio, Oklahoma, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Virginia, Vermont, Wisconsin, and Wyoming are also assisting in the investigation.

States are currently finalizing a settlement agreement which is expected to be completed within a month. As part of the agreement, Juul will be prohibited from participating.

The Youth Marketing Sponsorship Education Program outlines the use of paid product placements, such as cartoons depicting individuals under 35, in any marketing campaign. The program allows for the sale of unapproved fragrances and promotional products without FDA approval on landing pages of websites without age verification. The program also addresses misleading statements regarding nicotine content and allows for sponsorship or naming rights, provided that at least 85% of the audience is over 18 years old. Advertising is not permitted on billboards, public transportation, or social media unless it is targeted towards individuals over 35 years of age and does not contain health claims. The use of paid influencers to market directly to consumers is allowed only after age verification, and free samples are not permitted.

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