Juul faces a $438.5 million bill in a US e-cigarette probe into advertising targeted at children

Juul Labs has reached an agreement in principle to pay $438.5 million to 33 states to settle a two-year bipartisan investigation into the e-cigarette maker’s marketing and sales practices, specifically claims that it has addictive ones Nicotine products marketed to children.

The deal, which also includes Puerto Rico, would force Juul to comply with a series of “strict injunctions that severely limit its marketing and sales practices,” said William Tong, the Connecticut attorney general who led the negotiations with Texas and Oregon, in an explanation .

As part of the agreement, Juul will refrain from any youth marketing, paid product placement, advertising on public transit, funding of educational programs, depiction of anyone under the age of 35 in advertising, or use of cartoons in ads, among others, the statement said. Juul also agreed not to advertise on billboards or use paid influencers to promote products.

“Juul’s cynically calculated advertising campaigns have created a new generation of nicotine addicts,” Mr Tong said in the statement.

“They relentlessly marketed vaping products to underage users, manipulated their chemical makeup to make them palatable to inexperienced users, employed an inadequate age verification process, and misled consumers about the nicotine content and addictiveness of their products.”

Juul said in a statement that the settlement is an “essential part of our ongoing commitment to addressing issues of the past,” adding that the terms of the deal are consistent with its current business practices.

“We remain focused on the future as we work to fulfill our mission to move adult smokers away from cigarettes, the leading cause of preventable deaths, while tackling underage smoking,” the company said.

The agreement follows some previous agreements with individual states. Juul reached a $22.5 million settlement with Washington state in April over allegations it unlawfully targeted underage consumers. North Carolina struck a $40 million deal with Juul in 2021 over how the company markets products to underage users.

Texas Attorney General Ken Paxton said his state will receive nearly $43 million, adding, “Any corporation that misleads Texans, especially our youth, will be held accountable for their actions.”

https://www.independent.ie/business/world/juul-faces-4385m-bill-for-us-e-cigarette-probe-over-ads-aimed-at-children-41967208.html Juul faces a $438.5 million bill in a US e-cigarette probe into advertising targeted at children

Fry Electronics Team

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