The Nevada Attorney General's office has accused electronic cigarette manufacturer Juul of following the playbook of "big tobacco companies," attempting to make their products attractive to minors and deceiving consumers about the nicotine content in their devices.
In a civil lawsuit filed on Tuesday, the state claimed that Juul Labs, Inc. of San Francisco has hindered the state government's efforts to ban the sale of most flavored cigarettes and market products to people under the age of 21, which was implemented by Congress in the 1990s and later.
State officials said in the lawsuit, "Thanks to the joint efforts of states, the federal government, public health advocates, and many others, the smoking rates among youth and adults have decreased significantly. Unfortunately, the emergence of e-cigarettes has reversed much of the progress.
The complaint was filed after Nevada had reached an agreement with Juul Labs in September, as one of 32 states to settle with the company for $438 million. Nevada's portion of the settlement amounted to $14.4 million. Juul also agreed to stop advertising its electronic cigarettes to minors and to cease using sponsorships and social media influencers to promote its products.
An appeal has been filed with the Clark County District Court in Las Vegas, requesting a permanent injunction to prevent Juul Labs from engaging in violations of Nevada's Deceptive Trade Practices Act. The appeal also calls for civil penalties to be imposed for each infraction committed by the company and urges consideration for compensation and refunds.
A spokesperson for Juul, Arik Ben-Zvi, said that Nevada's application does not constitute a new complaint against the company, but is related to a multi-state settlement agreement reached in September, which includes Nevada.
He stated, "The terms of the agreement align with our current business practices that were established since the company-wide restructuring in autumn 2019.
The US Food and Drug Administration banned the sale of Juul products in June, but suspended its decision after Juul appealed, awaiting a review of further "scientific" issues.
In a complaint filed this week, officials in Nevada compared the e-cigarette industry to the "big tobacco" companies of the pre-1990s, when companies "realized that increasing cigarette sales depended to a large extent on getting individuals addicted to their products from a young age.
As a result, major tobacco companies have developed a comprehensive plan to attract vulnerable children and entice them to use their products,” the office stated. “They have also spent significant resources to expose young people to tobacco imagery through magazine ads, sporting events, and billboards.
Juul Labs sells electronic cigarettes using its proprietary product called a "pod," which delivers nicotine to the users inhaling the e-cigarette.
The pods of the company contain significantly more nicotine compared to other brands and include "nicotine salts" pioneered by Juul Labs, making the inhalant smoother and less irritating than earlier types of electronic smoking devices, according to national officials.
The Office of the Attorney General stated that the company, in its marketing efforts, misled consumers into believing that its products were either nicotine-free or had a lower nicotine concentration and were a safer alternative to combustible cigarettes.
According to state officials, Juul Labs has been selling its tobacco devices to minors from the beginning and, in fact, "the main driver of its explosive growth is young people adopting its products.
A complaint alleges that the company has focused marketing efforts on Instagram, Twitter, Facebook and other social media channels to target younger users.
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