Juul Labs settles $438.5 million lawsuit with U.S. states.

Sep.07.2022
Juul Labs settles $438.5 million lawsuit with U.S. states.
Juul Labs agrees to a $438.5 million settlement with 34 US states and territories over accusations of marketing to minors.

Recently, e-cigarette manufacturer Juul Labs agreed to pay a settlement of $438.5 million (approximately RMB 3.039 billion) to resolve lawsuits raised by 34 states and regions in the United States. These lawsuits allege that Juul underestimated the risk of its products and targeted underage customers.


On Tuesday, Connecticut Attorney General William Tong announced a deal representing several states and Puerto Rico. Puerto Rico joined the group in 2020 to investigate Juul's early marketing practices and claimed its technology as a safe and beneficial alternative to smoking.


The settlement resolved one of the major legal threats facing the company that was in crisis. However, the company still faces nine separate lawsuits from other states. In addition, Juul is also facing hundreds of personal lawsuits filed by teenagers and others who claim they were addicted to the company's electronic cigarette products.


According to a statement, a national investigation has found that Juul marketed their e-cigarettes to underage teenagers through sponsoring parties, giving away product samples and advertising, as well as using social media posts featuring young models.


In this settlement, we have obtained billions of dollars to help reduce the use of nicotine, and have forced Juul to accept a series of strict prohibitions to end adolescent marketing and combat underage sales," Tong said in a press release.


A total of $438.5 million will be paid over a period of six to ten years. Tong stated that at least $16 million of the funds paid by Connecticut will be dedicated towards prevention and education efforts. Juul had previously settled lawsuits in Arizona, Louisiana, North Carolina, and Washington.


Most of the restrictions imposed by the Tuesday settlement will not affect Juul's operations, as the company had ceased the use of parties, giveaways, and other promotional activities several years ago, when it came under scrutiny.


Since the launch of Juul in 2015, there has been a significant increase in the number of young people using e-cigarettes, prompting the US Food and Drug Administration to declare it an "epidemic" among underage users. Health experts warn that this unprecedented growth could lead to a generation of young people becoming addicted to nicotine.


Since 2019, Juul has mostly been in retreat, giving up all U.S. advertising and removing its fruit and candy flavors from store shelves.


The biggest blow occurred earlier this summer when the FDA started banning all Juul e-cigarettes from the market. Juul challenged this decision in court, prompting the FDA to conduct a scientific review of the company's technology.


The FDA's review is part of a comprehensive investigation into the multi-billion dollar electronic cigarette industry, following years of regulatory delays. The agency has authorized some e-cigarettes for adult smokers looking for less harmful alternatives.


Although Juul initially focused its marketing on young urban consumers, the company has since shifted to positioning its product as a nicotine replacement for traditional cigarette users.


As part of a settlement, Juul has agreed to avoid a series of marketing tactics. This includes not using cartoons, paying influential social media users, advertising on billboards and public transportation, and placing ads on any channel with less than 85% adult viewership.


Statement: 1. This article's content is compiled from third-party information sources and is only intended for industry communication and learning purposes. 2. This article does not represent the views of 2FIRSTS, and 2FIRSTS cannot confirm the truthfulness and accuracy of the article's content. The compilation of this article is only for industry communication and research purposes. 3. Due to limitations in the compilation process, the article's expressions may not entirely match the original text, so please refer to the original text for accuracy. 4. Regarding any domestic, Hong Kong, Macau, Taiwan, or international statements and positions, 2FIRSTS is fully aligned with the Chinese government. 5. The copyright for the compiled information belongs to the original media and author. If there is any infringement, please request to have the content removed.



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.

China Tobacco Supply-Chain Leader Huabao’s Three-Way Transformation Takes Hold as Overseas Revenue Jumps 216%, Non-Flavor Businesses Reach 42.2% and the Company Expands Into Global Next-Generation Tobacco Supply Chains
China Tobacco Supply-Chain Leader Huabao’s Three-Way Transformation Takes Hold as Overseas Revenue Jumps 216%, Non-Flavor Businesses Reach 42.2% and the Company Expands Into Global Next-Generation Tobacco Supply Chains
Huabao’s H1 2026 results show the company advancing across three connected fronts: international expansion, entry into next-generation tobacco supply chains and diversification beyond its traditional tobacco-related base. Overseas revenue rose 216.08% to CNY 96.02 million, while non-flavor businesses reached 42.2% of total revenue. Huabao also said it had entered the supply chains of leading global tobacco customers, as its nutrition, food ingredient, fragrance and personal-care businesses gained ground in Europe, Southeast Asia, Australia and New Zealand. However, adjusted net profit increased only 2.78%, and next-generation tobacco revenue was not separately disclosed, showing that the transformation is reshaping revenue and customer exposure but has yet to translate fully into underlying earnings.
Aug.28
DOJ Trade Fraud Task Force Tops $1 Billion in Cases, Putting Vape Supply Chains at Risk of Fraud Enforcement
DOJ Trade Fraud Task Force Tops $1 Billion in Cases, Putting Vape Supply Chains at Risk of Fraud Enforcement
According to the U.S. Department of Justice (DOJ), Fox News and other reports, the DOJ’s Trade Fraud Task Force (TFTF) has been linked to more than $1 billion in recoveries, penalties, forfeitures and publicly charged losses in less than one year. The task force focuses on trade fraud issues including country-of-origin fraud, illegal transshipment, false declarations and tariff evasion. While vape products are not the main source of the $1 billion figure, the industry’s reliance on global manufacturing and cross-border supply chains places it within broader U.S. trade enforcement scrutiny. The development suggests that U.S. oversight of cross-border vape products may increasingly extend beyond product authorization into import compliance, supply-chain transparency and corporate accountability.
Jul.23
Reynolds Seeks to Join Altria Lawsuit Challenging FDA PMTA Rule and Calculation of 180-Day Deadline
Reynolds Seeks to Join Altria Lawsuit Challenging FDA PMTA Rule and Calculation of 180-Day Deadline
Three R.J. Reynolds companies are seeking to intervene in a lawsuit filed by Altria subsidiaries Helix Innovations and NJOY challenging the FDA's 2021 PMTA final rule. The companies dispute how the agency uses Acceptance and Filing reviews and completeness determinations to establish when the Tobacco Control Act's 180-day decision period begins. Reynolds has also linked prolonged PMTA reviews to competition from unauthorized vaping products. The FDA, meanwhile, has been accelerating reviews and reducing its backlog.
Sep.14
Gallup Tracks Nicotine Pouch Use for the First Time: 11% of U.S. Adults Smoke, 9% Vape and 4% Use Nicotine Pouches
Gallup Tracks Nicotine Pouch Use for the First Time: 11% of U.S. Adults Smoke, 9% Vape and 4% Use Nicotine Pouches
Gallup’s 2026 Consumption Habits survey tracked nicotine pouch use for the first time. The survey found that 11% of U.S. adults reported smoking cigarettes in the past week, 9% reported vaping, and 4% reported using nicotine pouches. Cigarette smoking remained near Gallup’s long-term low, while adult vaping rates stayed relatively stable in recent years.
Market
Aug.25 by 2Firsts Perspectives
Philippines BIR Steps Up Illicit Vape Enforcement Ahead of Christmas Shopping
Philippines BIR Steps Up Illicit Vape Enforcement Ahead of Christmas Shopping
The Philippines’ Bureau of Internal Revenue is intensifying enforcement against illicit vape and tobacco products ahead of the Christmas shopping season, directing regional and enforcement offices to strengthen monitoring of production sites, warehouses, distribution channels and retail outlets. The BIR destroyed 240,550 illicit vape products in August with an estimated tax liability of about PHP1.53 billion. A nationwide tax-compliance operation in July also inspected 3,590 businesses involved in tobacco and vapor products.
Regulations
Sep.17 by 2Firsts Perspectives
Product | SKE Launches FRESA PRO in the U.S., Introducing Fresh Lock Technology for E-Liquid Management in High-Capacity Vapes
Product | SKE Launches FRESA PRO in the U.S., Introducing Fresh Lock Technology for E-Liquid Management in High-Capacity Vapes
Shenzhen SKE Technology has launched the FRESA PRO in the United States, a high-capacity rechargeable disposable vape featuring Fresh Lock electromagnetic valve supply control technology. The device combines a claimed capacity of up to 40,000 puffs, dual mesh coils, dual output modes and a transparent tank design. The launch reflects the high-capacity disposable vape segment’s shift from puff-count competition toward improved e-liquid management and device-level experience.
Aug.03