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.

F1 Faces Renewed Pressure Over Tobacco and Nicotine Sponsorships as 67 Groups Target ZYN and VELO Ahead of Madrid Race
F1 Faces Renewed Pressure Over Tobacco and Nicotine Sponsorships as 67 Groups Target ZYN and VELO Ahead of Madrid Race
Ahead of the Formula 1 race in Madrid, 67 Spanish and international public-health, medical and consumer organizations have sent an open letter to F1 President and CEO Stefano Domenicali calling for an end to sponsorships linked to the tobacco and nicotine industry, including nicotine pouches, vaping products and heated tobacco. The letter focuses on Philip Morris International’s ZYN partnership with Ferrari and British American Tobacco’s long-running partnership with McLaren and exposure for VELO. The campaign follows a March letter in which more than 160 organizations worldwide made a similar request to Formula 1.
Sep.10
UK-Listed Consumer Goods Group Supreme Sees Vape Duty as Potential Consolidation Opportunity, Holds FY27 Outlook
UK-Listed Consumer Goods Group Supreme Sees Vape Duty as Potential Consolidation Opportunity, Holds FY27 Outlook
UK-listed consumer goods group Supreme plc says it continues to expect FY27 trading to meet market expectations as the Vaping Products Duty takes effect on October 1, while maintaining a comparatively positive view of the new tax and compliance regime. Supreme has said the framework could increase compliance complexity for smaller operators and contribute to market consolidation, while its manufacturing, compliance and distribution scale may allow it to gain share. Its 88Vape brand will retain its value positioning.
Sep.18
EU ‘TPD3’ Enters Next Phase on Aug. 14 as Fragmented Vape and Nicotine Pouch Rules Push the Single Market Toward Regulatory Overhaul
EU ‘TPD3’ Enters Next Phase on Aug. 14 as Fragmented Vape and Nicotine Pouch Rules Push the Single Market Toward Regulatory Overhaul
A 12-week European Commission consultation on revising the Tobacco Products Directive and Tobacco Advertising Directive is due to close on Aug. 14, 2026. The Commission has identified e-cigarette flavours, disposable vapes, tobacco heating devices, nicotine pouches, nicotine-free e-cigarettes, packaging and digital marketing among areas for possible new EU rules. National regulations already vary significantly across the bloc, a fragmentation the Commission says creates internal-market barriers and distorts competition. No formal revised TPD/TAD legislative text has yet been published, with the Commission currently indicating December 2026 for the legislative initiative.
Aug.14
PMI CEO Attends Opening of IQOS Global Flagship in Tokyo’s Ginza as 1,814 Limited ILUMA i PRIME Sets Launch
PMI CEO Attends Opening of IQOS Global Flagship in Tokyo’s Ginza as 1,814 Limited ILUMA i PRIME Sets Launch
IQOS opened its first global flagship, IQOS Flagship Ginza, in Tokyo on September 4, 2026, replacing the former IQOS Store Ginza after nearly a decade of operation. The new location expands conventional product retail into member lounges, digital experiences, art installations and brand programming. IQOS also launched a Ginza-exclusive IQOS ILUMA i PRIME set limited to 1,814 individually numbered units, priced at JPY11,980, or about US$77. PMI Sales Strategy Consultant Yuji M. later said on LinkedIn that more than 500 people had lined up from the night before the opening.
Sep.07
Swedish-Founded Nicotine Pouch Retailer GotPouches Shifts to U.S.-Based Operations, Reaching Over 25 States
Swedish-Founded Nicotine Pouch Retailer GotPouches Shifts to U.S.-Based Operations, Reaching Over 25 States
Swedish-founded online nicotine pouch retailer GotPouches has completed the localization of its U.S. operations under UpNorth Retail LLC, with corporate operations in Franklin, Tennessee, domestic fulfillment from Nashville and U.S.-based customer support. The company says its catalog covers more than 20 nicotine pouch brands and it currently serves customers in more than 25 U.S. states.
Sep.18
New York’s 75% Wholesale Tax on Nicotine Pouches Takes Effect Sept. 1, With Aug. 31 Inventory Subject to Floor Tax
New York’s 75% Wholesale Tax on Nicotine Pouches Takes Effect Sept. 1, With Aug. 31 Inventory Subject to Floor Tax
New York State will extend its tobacco products tax to “alternative nicotine products,” including tobacco-free nicotine pouches, from September 1, 2026, at a rate of 75% of the wholesale price. Distributors, wholesalers and retailers must also inventory products held as of 11:59 p.m. on August 31 and pay a floor tax. Vapor products are excluded from the new category and remain subject to New York's separate 20% supplemental sales tax on the retail price.
Aug.26