Juul Labs reaches $440 million settlement with state attorneys general

Sep.21.2022
Juul Labs reaches $440 million settlement with state attorneys general
Juul Labs settles for nearly $440 million with 32 state attorneys general for vaping-related youth harm.

Juul Labs has reached a legal settlement of nearly $440 million with 32 state attorneys general, as well as many other attorneys general from various states and regions across the United States. The settlement reflects efforts to abide by the 1998 Master Settlement Agreement which outlines the current state of tobacco in the United States.


Court documents reveal that the settlement funds will be paid out over the course of six to ten years, with a majority of the money going towards youth prevention programs for vaping and other state and local public and community health initiatives.


The Attorney General of Connecticut, William Tong, issued a statement claiming that he and his office "led the fight" to hold Juul accountable. Oregon Attorney General Ellen Rosenblum also stated that her office "led the fight." She said, "The social costs and public health consequences are enormous and devastating." Texas Attorney General Ken Paxton also stated that his department "led the fight." "When I launched this investigation more than two years ago, my goal was to ensure that JUUL was held accountable for any past wrongdoing and to ensure that they change direction to fully comply with future laws," Paxton said. Other attorneys general are still continuing their victory lap. But who really led the effort to reach a multi-state, multi-jurisdictional settlement with this electronic cigarette company once touted as the largest in the entire US market? Technically, Paxton, Rosenblum, and Tong led the coordinated interstate investigation with assistance from other AG offices. But the true leader behind it all was what's been called the moral panic machine of the US federal government, three US presidents, and several regulatory agencies.


According to a national news report by the state-run broadcaster, Juul is now required to pay this amount to compensate for promoting high-nicotine closed electronic cigarette devices and committing legal offenses that have contributed to the national youth vaping epidemic. The former Food and Drug Administration (FDA) commissioner appointed by former President Donald Trump, Scott Gottlieb, declared the youth vaping trend in 2018. Following this, Trump signed legislation to raise the minimum legal age for sales of all tobacco products nationwide from 18 to 21 years old.


It was under the leadership of Donald Trump that the FDA quashed its stance on simplifying the implementation of PMTA regulatory procedures, resulting in companies being unable to operate within expensive regulatory environments and ultimately being forced to shut down.


Prior to this, President Barack Obama signed the Tobacco Control Act which authorized pre-market approval of tobacco products and halted years of product innovation. This law also gave the FDA the power to regulate tobacco products without considering other harm reduction methods. President Joe Biden signed legislation targeting synthetic nicotine and other legal tools in an attempt to eliminate the entire product category of nicotine ENDS. All three presidents were appointed and supported by the FDA commissioner, a surgeon and the Secretary of Health and Human Services who debunked the claim that e-cigarettes are just as bad or worse than smoking.


The settlement behind Juul's settlement is the result of a short history. As stated in the settlement, Juul must abide by certain mandatory activities: not marketing its products to young people; absolutely not funding pilot programs to reduce the harm of its products; not depicting people under 35 years old in any promotional materials or collateral; not using cartoons in marketing; no paid product placements; not selling branded merchandise; banning the sale of unapproved e-cigarette flavors by the FDA; no feasible age verification measures on the landing page, which prevents access to the website; no unapproved nicotine statements by the FDA; no false nicotine content statements; no sponsorship or naming rights; advertising not permitted unless 85% of the audience of the outlet is adult viewers; no billboards; no public transportation ads; no social media ads claiming health benefits, only recommendations for consumers over 35 years old; no use of paid influencers; advertising not permitted to be directly targeted at consumers unless age-verified; and no free samples of Juul products.


The demands for a settlement are similar to those for a master settlement agreement and tobacco advertising regulations. While I do not oppose some measures in a settlement, what is disheartening is the underlying meaning behind it. The master settlement agreement and laws requiring the payment of tobacco taxes essentially created a funding source worth billions of dollars for federal, state, and local governments.


However, some of these states have not used the funds they received for future youth prevention and public health education, despite having departments and offices that are underfunded compared to other regions of the country.


Lindsey Stroud, Director of the Consumers’ Center for the right-wing taxpayer protection alliance, also made this point.


Instead, each state is seeking funding from a company.


In her column on right-wing political blog Townhall.com, the author wrote: "The state's spending on youth tobacco and e-cigarette prevention is so low that the funds seven states have secured from electronic cigarette manufacturers to settle with Juul will exceed the funds their states have invested in these programs over the past six years." The author, Stroud, noted in her column that the states investigating and settling with Juul have little or no funding from tobacco control programs, including those aimed at preventing youth from using e-cigarettes. "In fact, 2016 was the last year that the state spent any of its own money on preventing youth from using e-cigarettes, and Juul will be paying Connecticut $16.2 million," she said.


This is a standard for many countries involved in the entire solution. Over the past six years, Stroud has cited data she obtained from the "Smoke-Free Kid" movement, pointing out that the states in the agreement have only funded tobacco control education programs in the tens of millions. One can imagine that states claiming to protect public health through tobacco control measures would invest more funds from their general budgets or cash funds.


Many people point out that this is clearly a case of the company paying for the government's failure.


Statement:


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


This article does not represent the views of 2FIRSTS, and 2FIRSTS cannot confirm the authenticity or accuracy of the article's content. The translation of this article is only for industry communication and research purposes.


Due to limitations in the translation skills, the translated article may not fully capture the intended meaning of the original text. Please refer to the original article for accuracy.


2FIRSTS remains fully aligned with the Chinese government's position on any domestic, Hong Kong, Macau, Taiwan, or international issues and statements.


Copyright of compiled information belongs to the original media and author. If there is any infringement, please contact us to remove it.



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.

Supreme Vape Revenue Rises 15% Despite UK Disposable Vape Ban
Supreme Vape Revenue Rises 15% Despite UK Disposable Vape Ban
UK consumer goods group Supreme said its vaping revenue rose 15% to £148.1 million in the year to March 31, 2026, despite the UK disposable vape ban taking effect during the period, while the company identified the Vaping Products Duty due in October as the next major industry milestone.
Regulations
Jul.03 by 2Firsts Perspectives
U.S. Appeals Court Says BAT Must Face Class Action Over Cigarette Labels
U.S. Appeals Court Says BAT Must Face Class Action Over Cigarette Labels
A U.S. appeals court ruled that British American Tobacco (BAT) must continue facing a consumer class action lawsuit over cigarette labels. The ruling allows the case to proceed but does not determine that BAT violated the law or is liable for damages. The case highlights ongoing legal risks facing major tobacco companies related to product labeling, consumer disclosures and product liability claims.
Jul.31
BP, Marathon and Valero Warn U.S. Gas-Station Stores: Illegal Vape Sales Could Bring Heavy Fines and Card-Processing Limits
BP, Marathon and Valero Warn U.S. Gas-Station Stores: Illegal Vape Sales Could Bring Heavy Fines and Card-Processing Limits
Fiserv and service station operators including BP, Marathon Petroleum and Valero have warned U.S. partners and gas-station convenience-store owners that selling illegal vapes could lead to heavy fines, breach brand agreements and even put stores’ card-processing access at risk, according to Reuters.
Regulations
Jul.07 by 2Firsts Perspectives
South Korea Vape Strategies Diverge as BAT Reconsiders Exit and PMI Takes VEEV to About 14,000 Stores
South Korea Vape Strategies Diverge as BAT Reconsiders Exit and PMI Takes VEEV to About 14,000 Stores
BAT Rothmans says it previously considered exiting South Korea's vaping market because of competitive pressure from unregulated products, but is now reassessing conditions following changes to the country's nicotine regulatory framework. Vuse and other BAT vaping products remain available through existing distribution channels. The statement followed a South Korean media report that interpreted BAT's broader withdrawal from selected Vapour markets as a full exit from South Korea. Meanwhile, Philip Morris International launched VEEV inPRIME in the country in June and began expanding distribution to around 14,000 convenience stores and other retail channels in July. The contrasting moves highlight differing investment strategies as South Korea's regulated vaping market evolves.
Aug.14
PMI Global R&D Chief Meets Chinese Tobacco Regulator as China Advances Heated Cigarette Standards
PMI Global R&D Chief Meets Chinese Tobacco Regulator as China Advances Heated Cigarette Standards
Philip Morris International’s global R&D chief Michele Cattoni met Liu Sanjiang, deputy director of China’s State Tobacco Monopoly Administration, in Beijing on Aug. 27. The meeting comes as China advances mandatory standards for heated cigarettes and nicotine pouches, laying groundwork for their domestic introduction. Cattoni has held senior roles in PMI’s heated tobacco development, while China’s draft standard covers multiple heating architectures, including systems similar in principle to PMI’s IQOS ILUMA technology.
Aug.27
Special Report|South Korean Lawmaker Queries China Tobacco Regulator Over Synthetic Nicotine as Export-Rule Gaps Emerge
Special Report|South Korean Lawmaker Queries China Tobacco Regulator Over Synthetic Nicotine as Export-Rule Gaps Emerge
A South Korean lawmaker has asked China’s tobacco regulator to clarify rules for e-cigarettes containing synthetic nicotine amid questions over product declarations and possible tax losses. The dispute exposes gaps between Chinese export requirements and destination-market rules, while underscoring the global impact of China’s licensing and traceability policies.
Jul.10