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.

ATF Cancels Webloc Contract, Raising Questions Over Commercial Location Data in Enforcement
ATF Cancels Webloc Contract, Raising Questions Over Commercial Location Data in Enforcement
The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has stopped using Webloc, a commercial phone-tracking tool, after lawmakers, a prosecutor and a judge raised legal and privacy concerns over warrantless use of ad-tech location data, a development that may affect data-use boundaries in U.S. enforcement against illicit tobacco, nicotine products and cross-border distribution networks.
Jun.29
French Vape Distributor Kumulus Vape Yields About 3% as Earnings Growth Stalls
French Vape Distributor Kumulus Vape Yields About 3% as Earnings Growth Stalls
Listed French vape distributor Kumulus Vape will trade ex-dividend on June 26, 2026, and pay an annual dividend of €0.10 per share on June 30, with Simply Wall St saying the payout is covered by profit and free cash flow, while weak earnings growth remains a concern.
Industry InsightMarketNews
Jun.24
Product | YOOZ Launches Waker Electronic Shisha Device, Expanding Vape Applications Beyond Portable Devices
Product | YOOZ Launches Waker Electronic Shisha Device, Expanding Vape Applications Beyond Portable Devices
YOOZ has introduced the Waker Electronic Shisha device, expanding its vaping portfolio into the electronic shisha category. The device combines a rechargeable hardware platform with dedicated cartridges, featuring a 4,000mAh battery, up to 60W output power, and LED lighting effects. The product has appeared across multiple French retail channels, reflecting the continued expansion of vaping products into new consumption scenarios.
Jul.13
Data|China’s January-May 2026 Device Exports Rise 13% While Nicotine Product Exports Decline 6.9%
Data|China’s January-May 2026 Device Exports Rise 13% While Nicotine Product Exports Decline 6.9%
According to China Customs export data analyzed by 2Firsts, China’s vape export mix continued to evolve during January-May 2026. Exports of electronic vaporisation devices (HS 85434000) increased 13.00% year on year, supported by growth in both shipment volume and average export prices. Meanwhile, exports of nicotine-containing non-combustible products (HS 24041200) declined 6.89%, with lower shipment volumes partly offset by higher average export prices.
Special Report
Jun.30
PMI Oral Products Chief Says Lack of Rules May Push Nicotine Pouch Market Into Illicit Trade
PMI Oral Products Chief Says Lack of Rules May Push Nicotine Pouch Market Into Illicit Trade
Nick Ricketts, President of Oral Products at Philip Morris International (PMI), told Logos Press that nicotine pouches should be brought under clear regulatory frameworks covering nicotine limits, flavor rules, age verification, sales controls and marketing standards, arguing that the absence of clear rules or blanket bans may push consumer demand into illegal or semi-legal channels.
Jul.06
Vape Vending Machine Concerns Rise in German-Speaking Europe as Schools and Age Checks Come Into Focus
Vape Vending Machine Concerns Rise in German-Speaking Europe as Schools and Age Checks Come Into Focus
Recent reports from Germany and Switzerland show growing concern over vape and tobacco vending machines near schools or in public settings, with parents, teachers and residents questioning youth access, age-verification controls and the sale of vapes alongside snacks and drinks.
Jul.06