Juul Labs to Pay Nearly $440 Million Settlement.

Sep.07.2022
Juul Labs to Pay Nearly $440 Million Settlement.
Juul Labs agrees to pay nearly $440 million to settle investigations into its marketing practices in 33 states.

Electronic cigarette manufacturer Juul Labs has agreed to pay nearly $440 million to settle a two-year investigation by 33 states into its marketing of high-nicotine e-cigarette products. These products have long been accused of being the main driver behind the surge in youth e-cigarette use nationwide.


Connecticut Attorney General William Tong announced the deal on Tuesday, on behalf of several states and Puerto Rico. Puerto Rico had joined forces in 2020 to investigate Juul's early promotional activities and claimed the safety and benefits of its technology as a smoking alternative.


The settlement has resolved one of the biggest legal threats facing the struggling company, however, it still faces nine separate lawsuits from other states. Additionally, Juul is also facing hundreds of individual lawsuits brought by teenagers and others who claim to have become addicted to the company's e-cigarette products.


According to a statement, a national investigation has found that Juul marketed its e-cigarettes to underage minors through parties, product giveaways, advertisements, and social media posts featuring young models.


Through this settlement, we have acquired hundreds of millions of dollars to aid in reducing nicotine use, and have compelled Juul to accept a series of strict prohibitory clauses aimed at ending their adolescent marketing tactics and combating underage sales," said Juul spokesperson Tong in a press release.


A sum of $438.5 million will be paid within a period of 6 to 10 years. Tong stated that at least $16 million paid by the state of Connecticut will be used for prevention and education efforts. Prior to this settlement, Juul had resolved lawsuits in Arizona, Louisiana, North Carolina, and Washington.


Most of the restrictions imposed by the settlement on Tuesday will not affect Juul's practices. Juul stopped using parties, giveaways, and other promotional activities a few years ago after being scrutinized.


Since its launch in 2015, the use of e-cigarettes by teenagers has surged, leading to the US Food and Drug Administration declaring a "epidemic" of underage e-cigarette use among youths. Health experts warn that this unprecedented growth could result in a generation of young people becoming addicted to nicotine.


Since 2019, Juul has mostly been in retreat, abandoning all US advertising and removing its fruit and candy flavors from store shelves.


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


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


Although Juul initially focused on marketing to young urban consumers, the company has since shifted towards positioning its product as an alternative source of nicotine for older smokers.


The company stated that they will continue to focus on their future as they fulfill their mission to prevent the leading cause of preventable deaths among adult smokers, while also combating underage usage.


As part of a settlement agreement, Juul has agreed to avoid a series of marketing practices. These include not using cartoon characters, paying social media influencers, depicting individuals under the age of 35, advertising on billboards and public transportation, and advertising through any channel unless 85% of the audience is adults.


The deal also includes restrictions on the placement of Juul products in stores, age verification for all sales, and limitations on online and retail sales.


Statement


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


This article does not represent the viewpoint of 2FIRSTS, and 2FIRSTS cannot confirm the truthfulness or accuracy of the content. The translation of this article is only intended for industry-related research and communication.


Due to limitations in translation proficiency, the compiled article may not fully convey the same meaning as the original. Please refer to the original article for accuracy.


2FIRSTS maintains full alignment with the Chinese government on any domestic, Hong Kong, Macau, Taiwan, and foreign-related statements and positions.


The copyright of compiled information belongs to the original media and authors. If there is any infringement, please contact us for immediate removal.



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.

JAMA Study: U.S. Vape Directories Fail to Sustainably Curb Unlisted Sales as Product Shifts May Redistribute Brand Share 2Firsts Recommended
JAMA Study: U.S. Vape Directories Fail to Sustainably Curb Unlisted Sales as Product Shifts May Redistribute Brand Share 2Firsts Recommended
A study by CDC Foundation researchers found no sustained decline in e-cigarette sales across Alabama, Oklahoma and Louisiana, the first three U.S. states to implement e-cigarette directory laws. Louisiana initially saw a significant sales decline, followed by a rebound and a persistent reduction in product availability. Sales also shifted from nontobacco-flavored disposables toward prefilled cartridges, with Vuse Alto driving much of the increase in menthol cartridges. By April 2025, unlisted products still accounted for more than half of e-cigarette nicotine sales in all three states.
Sep.18
On-Site Report | CTP Details PMTA Backlog, 180-Day Review Goal and sPMTA Process
On-Site Report | CTP Details PMTA Backlog, 180-Day Review Goal and sPMTA Process
FDA’s Center for Tobacco Products detailed new PMTA review data and process changes at the 2026 FDLI conference. Pending PMTAs fell from about 450,000 at the start of 2025 to 135,000 by September 2026. CTP also discussed its 180-day review goal, current sPMTA pilot, alternate-supplier planning, more than 50,300 pending SE reports, and lessons from the nicotine pouch pilot already being applied to ENDS review.
Regulations
Oct.07
Russia's Vape Ban Decisions Reach 17 Regions With 39 More Considering Laws, Putting Over 3,000 St. Petersburg Retail Outlets in Focus
Russia's Vape Ban Decisions Reach 17 Regions With 39 More Considering Laws, Putting Over 3,000 St. Petersburg Retail Outlets in Focus
Russia's regional vape retail restrictions are expanding. State Duma Speaker Vyacheslav Volodin said on November 7 that 17 regions had adopted decisions to ban vape sales, while another 39 were preparing or considering similar legislation. On November 12, lawmakers in Leningrad Oblast and the Republic of Karelia adopted bans scheduled to begin on March 1, 2027. A day earlier, St. Petersburg unanimously approved a five-year ban proposal in its first reading. The city has 615 specialist vape shops and more than 2,400 other retail outlets selling vaping products alongside other goods. Under Federal Law No. 186-FZ, enacted in June 2026, Russian regions may prohibit retail sales of electronic nicotine delivery systems and related liquids between March 2027 and March 2032. The legislation also restricts licensed suppliers from delivering covered products to retail premises in regions where bans apply.
Regulations
Nov.13
Germany Probes 7.6 Million Illegal Vape Case With Estimated €33.3 Million Tax Loss; Four Chinese Manufacturer Employees Under Investigation, Some Packaging in Enforcement Images Resembles FUMOT Products
Germany Probes 7.6 Million Illegal Vape Case With Estimated €33.3 Million Tax Loss; Four Chinese Manufacturer Employees Under Investigation, Some Packaging in Enforcement Images Resembles FUMOT Products
German prosecutors and customs authorities are conducting a criminal investigation into an alleged cross-border organised vape network. Authorities say that between January 2024 and March 2025, four employees of an unnamed Chinese e-cigarette manufacturer allegedly built a network of sales agents and wholesalers that brought more than 7.6 million nicotine disposable vapes into Germany, causing an estimated €33.3 million in excise-tax losses. The manufacturer has not been named. Some products visible in enforcement images have packaging resembling products from FUMOT’s portfolio. European regulatory records from 2024, FUMOT’s public overseas-sales materials and records involving German vape importer and distribution company Zamu-Pro GmbH also show FUMOT/RandM products and German distribution activity during the period covered by the investigation.
Sep.21
On-Site Report | After FDA Announces Review of PMTA Framework, CTP Director Details Reform Priorities
On-Site Report | After FDA Announces Review of PMTA Framework, CTP Director Details Reform Priorities
FDA CTP Director Bret Koplow used his FDLI keynote in Washington to outline how the agency is rethinking the PMTA framework. He discussed category-specific review, nicotine pouch and sPMTA pilots, AI-assisted review, a 70% reduction in pending applications, and a major staffing constraint: CTP currently has only nine scientific review teams. He also reaffirmed tobacco harm reduction while stressing youth protection, flavored products, risk communication, and the challenge of unauthorized e-cigarettes.
Regulations
Oct.06
U.S. Judge Stays Helix, NJOY Challenge to FDA PMTA Rule Pending New Rulemaking Court Stays Altria's Helix, NJOY Challenge to PMTA Rule as FDA Prepares New Rulemaking
U.S. Judge Stays Helix, NJOY Challenge to FDA PMTA Rule Pending New Rulemaking Court Stays Altria's Helix, NJOY Challenge to PMTA Rule as FDA Prepares New Rulemaking
A federal judge in Texas on Oct. 8 granted a joint request by the FDA and plaintiffs including Altria subsidiaries Helix Innovations and NJOY to stay litigation challenging the agency's 2021 PMTA rule. The court cited FDA's anticipated rulemaking concerning the regulation at issue. FDA announced on Sept. 28 that it intends to reassess the PMTA framework and could initiate new rulemaking to replace it. The parties must file a joint status report within 45 days and every 45 days thereafter. A motion by three Reynolds American companies to intervene remains pending.
Regulations
Oct.10