Juul, the largest electronic cigarette manufacturer in the United States, has agreed to improve its advertising and retail practices in Iowa and pay $5 million over the course of four years to resolve allegations of violating state laws.
Iowa's Attorney General Tom Miller announced a settlement with Juul to resolve potential violations of Iowa's Deceptive Trade Practices Act.
Miller claims that targeting individuals under the age of 21 in Iowa is a violation of state law, and is a focus of their company's products.
In a statement, Miller said, "The agreement strikes a balance in the truthful advertising and promotion of Juul e-cigarette devices and pods. E-cigarettes should be marketed to smokers as a less harmful alternative, but not to young people.
As part of an agreement, Juul has agreed to annually send $1.25 million to the Iowa Department of Public Health. The funds will be used to provide resources and education to youth under the age of 21 in Iowa, including assistance with smoking cessation.
The company denies any wrongdoing and additionally agrees to: [insert other terms here].
Do not target young people in Iowa through advertising, promotions, or marketing of Juul products.
Individuals are required to conduct age verification on any website they own or operate.
Do not display Juul products in retail stores outside of the counter area, and customers are not allowed to access the products with the assistance of employees.
Online transactions will be limited to a maximum of two Juul devices per month, ten Juul devices per year, and 60 Juul pods per month.
Taking reasonable measures, retail transactions in Iowa are limited to one Juul device or 16 Juul pods per transaction.
Do not sell products to consumers under the age of 21.
Disclose the nicotine content in their products.
The company has also agreed to appoint a designated staff member to ensure compliance with the agreement with the Iowa Attorney General's office and to address any compliance-related issues.
In 2018, Juul Labs sought guidance from Miller on using their product as a means to reach young people. Miller was employed as part of these efforts.
In April 2018, this electronic cigarette manufacturer announced that, as part of a $30 million initiative over the next three years, it will support efforts by states and the federal government to raise the minimum age for purchasing tobacco products. The initiative amounts to approximately 210 million yuan.
Part of the funding includes a research team led by former Attorney General and public health officials, convened by Miller, who has ties to the tobacco industry.
A spokesperson for the Office of the Attorney General stated, "The consulting group was independent from Juul, and its members did not receive any form of compensation. The group's recommendations to Juul were similar to the final settlement agreement. The consulting group disbanded at the end of 2018.
In 1998, Miller and other 45 state attorneys general signed a settlement agreement with the four major tobacco companies in the United States to resolve lawsuits related to state healthcare costs associated with smoking-related illnesses.
This agreement is the largest of its kind in American history, requiring companies to pay $206 billion over 25 years to 46 states, followed by annual payments based on national cigarette sales.
Over the past 24 years, the state has received more than $1.41 billion (approximately RMB 9.84 billion) in payments as part of the peace agreement.
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