Juul, the popular e-cigarette company, has reached a settlement of $462 million with six states and Washington D.C. regarding a lawsuit that accused the company of targeting minors with its advertising and marketing campaigns. The settlement is the largest multi-state settlement Juul has made yet, but it is only a small part of the total amount the company has paid so far.
Background of the Lawsuit
In 2019, the New York Attorney General filed a lawsuit against Juul, alleging that the company was engaging in deceptive marketing practices and illegally selling products to minors. The lawsuit claimed that Juul was using advertising and marketing campaigns that glamorized vaping with ads that featured “young models using fruity, sweet and minty flavors that appealed to youth.” The lawsuit also alleged that Juul was using social media influencers to promote their products to minors.
Settlement Details
The settlement includes a $462 million penalty that will be split among the states of New York, California, Colorado, Illinois, Massachusetts, New Mexico, and the District of Columbia. In addition to the monetary penalty, the settlement includes strict restrictions that will prevent Juul from marketing its products to minors in the future. These restrictions include a ban on showing persons under 35 years of age using its products, and rules that would keep Juul product placement from appearing in movies, TV shows, video games, and even virtual reality.
Juul will have 8 years to pay out the settlement, and it might need it. According to a 2022 valuation based on Cigarette maker Altria’s investment in the company, Juul’s worth has dropped dramatically since 2018. Despite the settlement, Juul is attempting to remain optimistic. “With this settlement, we are nearing total resolution of the company’s historical legal challenges and securing certainty for our future,” the company told ABC News. “Since our company-wide reset in the fall of 2019, underage use of JUUL products has declined by 95% based on the National Youth Tobacco Survey.”
Juul’s Previous Settlements
This is not the first time Juul has had to pay a large settlement. In 2022, the company agreed to pay $1.2 billion, collectively settling thousands of personal and government lawsuits. These lawsuits alleged that Juul’s marketing practices were responsible for the increase in vaping-related illnesses and deaths. The settlement was the largest in the history of the vaping industry.
Conclusion
Juul’s $462 million settlement with six states and Washington D.C. is a significant step towards holding e-cigarette companies accountable for their marketing practices. The settlement sends a strong message that companies that target minors with their advertising will face serious consequences. With Juul’s worth dropping dramatically, the settlement may have a significant impact on the company’s future.
FAQs
What is Juul?
Juul is an e-cigarette company that sells vaping products.What was the lawsuit against Juul?
The lawsuit alleged that Juul was engaging in deceptive marketing practices and illegally selling products to minors.What is the settlement amount?
The settlement amount is $462 million.What restrictions are included in the settlement?
The settlement includes restrictions that will prevent Juul from marketing its products to minors in the future, including a ban on showing persons under 35 years of age using its products.What is Juul’s previous settlement?
In 2022, Juul agreed to pay $1.2 billion, collectively settling thousands of personal and government lawsuits.