Juul Labs Reaches Settlement with Oregon for Teen Marketing

Sep.23.2022
Juul Labs Reaches Settlement with Oregon for Teen Marketing
Juul Labs fined $20 million for targeting minors in Oregon, part of a $438 million settlement with 33 other states and territories.

Juul Labs has been accused of ruthlessly marketing its products to minors and is expected to pay over $20 million in a settlement with the state of Oregon.


The findings were the result of a two-year investigation by the Department of Justice in Oregon, along with Texas and Connecticut. The lawsuit alleges that the company attracted young customers through parties, advertising, social media posts, and free samples.


In addition to Oregon, Juul must also pay at least $438 million to 33 other states and territories.


Chris Davis is the dean of students at Redmond High School. He stated that the school recorded 54 incidents of students vaping last year. Davis acknowledged that, despite efforts to monitor students on campus, it is difficult to know the actual number of students using e-cigarettes.


They now have these different types of flavors, so it's easy to hide, and the steam doesn't linger in the air for very long," said Davis.


According to data from the Oregon Student Health Survey, the usage of e-cigarettes among 11th grade students in the state has been increasing over the years. Dr. Tom Jeanne, Deputy Chief Health Officer and Epidemiologist at the Oregon Health Authority, stated that as the usage of traditional cigarettes decreases, there has been a surge in the usage of e-cigarettes.


According to Jenny, we have basically seen a steady increase in youth e-cigarette usage in Oregon over the last six years in 2019.


A state investigation has found that Juul is using marketing tactics that attract minors to use their product.


Their strategy includes paying social media influencers to promote their products, engaging young people in their advertising, and placing ads in locations where young people are likely to see them," said Jenny.


The investigation further reveals that Juul's original packaging is misleading, as it does not clearly disclose its nicotine content and implies that the actual nicotine concentration is lower than it is.


Many health concerns exist," said Jenny. "The emissions contain hazardous chemicals, including formaldehyde and acetone. There are toxic metals, and known carcinogens that can lead to cancer.


During the early stages of the pandemic, the trend of e-cigarettes took a turn as schools were disrupted. Among 11th grade students in the state of Oregon, the use of e-cigarettes among teenagers decreased by nearly half.


We need to take a closer look at the current trend because students are returning to school in a more regular manner," said Jenny.


Davis also noted a decrease in student usage. He believes this is due to both the disruption caused by the pandemic and increased exposure to information about the dangers of e-cigarettes.


Davis stated, "I believe that when it first emerged, it was more of a curiosity, but now more and more children are becoming aware of the impact of e-cigarettes and making better decisions.


Despite this, Jenny and Davis assert that there is still much work to be done in eradicating e-cigarettes among teenagers. Last year, Oregon Attorney General Ellen Rosenblum successfully supported a bill to address a crucial loophole that allowed underage Oregonians to purchase e-cigarette products through the internet.


Davis stated that he is aware of some stores selling electronic cigarettes to minors, but he added that the most common way children are exposed to e-cigarettes is alarming.


Davis said, "Parents are now opting for electronic cigarettes as their chosen tobacco product, so kids are either stealing them or receiving them as gifts from their parents.


Davis said that disciplining individuals for using electronic cigarettes is particularly challenging due to the high risk of addiction to nicotine. Last spring, the Redmond School District implemented a program called Upshift, which offers counseling services for tobacco, alcohol, and drug addiction.


According to Davis, "When children are caught or self-report that they need support to overcome their nicotine problems, it identifies the children who need support.


Rosenblum added that she hopes this settlement will provide the necessary resources for states to help young people quit using e-cigarettes and prevent future generations from becoming targets of slick marketing strategies that lure them to use JUUL products.


In addition to financial terms, the settlement also restricts Juul from engaging in misleading or seemingly attractive marketing and sales practices that may target underage customers.


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