On April 12th, American vaping behemoth Juul Labs Inc agreed to pay $462 million to six US states and the District of Columbia to settle allegations of marketing to minors. This marks the largest settlement amount to date against the company. Juul did not admit to any wrongdoing in the settlement.
In this agreement, Juul and each state received the following settlement amounts:
California has reached a record-breaking settlement agreement of $175.8 million with Juul, the largest such agreement between the electronic cigarette company and any U.S. state. New York has also settled for $112.7 million, followed by Illinois with $67.6 million, Massachusetts with $41 million, Colorado with $31.7 million, New Mexico with $17.1 million, and Washington D.C. with $15.2 million. This latest agreement marks the most recent in a string of settlements between Juul and cities and states across the country, all of which include various restrictions on the company's marketing, sales, and distribution of its products, including a ban on any marketing targeted at young people and limits on customer purchases in both retail stores and online.
On December 6, 2022, Juul announced that it has secured investment to cover settlement costs. The company has been in talks with two early investors regarding a financial assistance plan to cover their legal liabilities.
Juul accused of false marketing.
About five years ago, Juul became the champion of the US electronic cigarette market with the popularity of flavors such as mango and mint. Parents, school administrators, and politicians largely blamed the company for the sharp increase in underage vaping.
According to Reuters, these states are accusing Juul of falsely marketing its e-cigarettes as less addictive than traditional cigarettes and using glamorous advertising targeting minors.
Juul has stated that since autumn 2019, when they changed their marketing strategy, there has been a 95% decrease in the use of their products by individuals under the age of 18.
In September 2022, Juul Labs agreed to pay nearly $440 million to settle investigations into its marketing of electronic cigarettes by 33 US states.
In late June 2022, Juul's e-cigarettes were temporarily banned in the United States. The FDA believed that the company had not proven that the sale of its products was suitable for public health. However, after an appeal, the health regulatory agency lifted the ban and agreed to conduct additional review of Juul's marketing application.
In October 2022, Juul released details of its MDO appeal. In late September of last year, Juul shareholder Altria Group exercised its option to terminate the non-compete agreement with the e-cigarette manufacturer.
For further reading:
Juul has reached a settlement with West Virginia for a price of $7.9 million. The company will pay hundreds of millions of dollars in total settlement fees.
US brand Juul will pay $440 million to reach a settlement with various states.
JUUL, in an effort to reach settlements, has spent $18.2 billion. Here is a list of each state's settlement amount and conditions.
Special Report: Juul Settlement Overview - Two Firsts
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The company Juul Labs has agreed to pay $462 million to six states in the United States.
Juul has reached a significant settlement with six states, including California, agreeing to pay $175.8 million to the state.
Colorado is set to receive $31 million as a result of a national settlement with e-cigarette company Juul.
E-cigarette company Juul has been ordered to pay $67.6 million in a settlement with the state of Illinois, related to its marketing practices that allegedly targeted youth. The settlement comes after a two-year investigation by the state attorney general's office into Juul's marketing tactics to attract young people, which included social media campaigns, flavored products, and online advertising. This is the first state settlement of its kind with Juul, which has faced widespread criticism over its role in the rise of youth vaping.
The Attorney General's Office has reached a multistate settlement with JUUL totaling $462 million. Massachusetts has also secured $41 million as part of this settlement.
The state of New Mexico is set to receive more than $17 million from Juul as part of a settlement to resolve a lawsuit pertaining to the use of vaping products by minors.
E-cigarette company Juul has agreed to pay $15.2 million to Washington DC for advertising and promoting vaping products to minors.
The JUUL vape company is set to provide $112 million to the state of New York.
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