OLYMPIA, Wash. — A Washington choose ordered e-cigarette maker Juul Labs Inc. to pay $22.5 million to the state over the following 4 years in a settlement stemming from a lawsuit over its promoting practices.
The lawsuit, filed by Washington Attorney General Bob Ferguson in 2020, alleged Juul, San Francisco, violated the regulation when it designed and marketed its merchandise to attraction to underage shoppers and deceived shoppers in regards to the addictiveness of its product.
“Juul put profits before people,” Ferguson mentioned. “The company fueled a staggering rise in vaping among teens. Juul’s conduct reversed decades of progress fighting nicotine addiction, and today’s order compels Juul to surrender tens of millions of dollars in profit and clean up its act by implementing a slate of corporate reforms that will keep Juul products out of the hands of underage Washingtonians.”
Juul denied the allegations within the state’s criticism and didn’t admit to any wrongdoing within the settlement, which was ordered by King County Superior Court Judge Douglass North on April 12.
In addition to the cost, Juul should take different actions together with stopping its promoting that appeals to youth, stopping most social media promotion, precisely advertising and marketing the content material and results of the nicotine in its product and conduct strict practices to substantiate the age of shoppers who purchase Juul merchandise, together with secret shopper checks, in keeping with the settlement.
“This settlement is another step in our ongoing effort to reset our company and resolve issues from the past,” Juul mentioned in a press release on its web site. “We support the Washington State Attorney General’s plan to deploy resources to address underage use, such as future monitoring and enforcement. The terms of the settlement are consistent with our current business practices and past agreements to help combat underage use while offering adult smokers access to our products as they transition away from combustible cigarettes.”
Juul has entered into settlement agreements with different state attorneys normal as properly, together with Louisiana, Arizona and North Carolina, it mentioned.
“We will continue working with federal and state stakeholders to advance a fully regulated, science-based marketplace for vapor products,” Juul mentioned.
Juul stopped accepting retail orders for its Mango, Fruit, Creme and Cucumber Juul pods in November 2018, and suspended gross sales of all flavored pods by October 2019. Then U.S. Surgeon General Dr. Jerome Adams mentioned teen vaping had reached “epidemic” ranges, threatening to hook a brand new technology of younger individuals on nicotine. About a 12 months later, the FDA banned most flavors from unauthorized cartridge-based e-cigarettes till firms undergo the premarket tobacco product software (PMTA) course of.
Members assist make our journalism doable. Become a CSP member at the moment and unlock unique advantages, together with limitless entry to all of our content material. Sign up right here.
Want breaking information at your fingertips?
Get at the moment’s need-to-know comfort trade intelligence. Sign as much as obtain texts from CSP on information and insights that matter to your model.
The newest from CSP, despatched straight to your inbox.