U.S authorities announced on December 6th that struggling e-cigarette manufacturer Juul has agreed to pay $438.5 million to regulatory agencies in 33 states. This includes paying $33.6 million to New Jersey to settle charges of deceiving customers and selling to teenagers.
According to a statement from New Jersey Attorney General Matthew Platkin, Juul, the popular e-cigarette company, is also facing scrutiny from federal regulatory agencies. These agencies are attempting to ban Juul products in the United States. Juul has also agreed to strictly limit its marketing practices as part of this agreement.
As per the transaction, Juul did not admit to any wrongdoing.
A spokesperson for the company stated in a release that the agreement is "the follow-up to Juul's past efforts in resolving issues" and that they are currently working with regulatory agencies.
Spokesperson Ben Williams stated, "As past issues continue to be resolved, Juul remains focused on a forward path to ensure its future in fulfilling its mission of keeping adult smokers away from cigarettes, the leading preventable cause of death, while prohibiting underage use.
New Jersey Attorney General Gurbir Grewal stated that in their two-year investigation, they found that Juul actively marketed and sold their product to underage users, eventually becoming a leading brand in the e-cigarette industry. In New Jersey, it is illegal for individuals under the age of 21 to purchase e-cigarettes.
This agreement means that Juul can no longer prioritize profits over public health by promoting and selling electronic cigarettes to youth using illegal marketing tactics.
An investigation led by authorities in Connecticut, Texas, and Oregon has revealed that early product labels of Juul did not clearly disclose the presence of nicotine and underestimated its content. Officials also noted that the company marketed Juul e-cigarettes as an effective tool for smoking cessation without obtaining approval from the United States.
Cari Fais, the Acting Director of the Consumer Affairs Division, has stated in a press release that Juul is seeking new ways to market nicotine to young people as a result of declining teenage smoking rates. This suggests that the e-cigarette industry will not tolerate deceptive marketing practices that encourage addiction among young people.
According to a 55-page settlement agreement, Juul has agreed to a series of restrictions on its business practices, including not directly marketing to underage users, not providing free samples, and not advertising near schools or on public transportation.
After the FDA ordered Juul to remove its e-cigarettes from the market, the company attempted to save itself by agreeing to a deal. According to the Associated Press, Juul recently received a significant influx of cash from investors to continue its operations.
The US Food and Drug Administration has claimed that Juul and other major e-cigarette companies have played varying roles in promoting underage use, while rapidly growing into a multi-billion dollar industry.
A spokesperson for Juul stated that their products are still available for use by adult smokers and they believe they have the ability to reduce harm.
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