Juul settlement with 34 states and territories over marketing, sales of products totals $438.5M

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Juul e-cig marketing settlement overview: 

• Who: Juul agreed to pay $438 million in a settlement with 34 states and territories to end a two-year investigation into the company’s sales and marketing practices. 
• Why: Juul is accused of targeting underage youth with marketing campaigns for its e-cigarette devices. 
• Where: The Juul settlement is nationwide. 

Juul agreed to pay $438.5 million to resolve an investigation into the e-cigarette company’s sales and marketing practices. 

The deal, which was announced by Texas Attorney General Ken Paxton, was made with a total of 34 states and territories and will end a two-year investigation into the company. 

Juul will be able to choose whether it wants to pay out the settlement in either a six- or 10-year timeframe; however, the amount it will be required to pay will increase if it chooses to take longer to make the payments, Law360 reports. 

The total Juul settlement amount will increase to $476.6 million in the event Juul decides to take the full 10 years to complete making the payments. 

The bipartisan investigation into Juul made it clear that the company had engaged in a marketing campaign that specifically targeted underage youth, Paxton says in a statement.

Juul used techniques to target youth that included social media posts, launch parties, free e-cigarette product samples and futile age verification methods, according to Paxton. 

Paxton says goal of investigation to hold Juul ‘liable’ for alleged wrongdoing

“When I launched this investigation over two years ago, my goal was to make sure Juul was held liable for any wrongdoing done in the past and ensure that they change direction to fully comply with the law going forward,” Paxton says. 

The investigation into Juul’s marketing practices, which began in February 2020, also found that the company had not disclosed clearly that its e-cigarette products contained nicotine and falsely implied that they had a lower dose than they did, according to Paxton. 

Paxton claims consumers were also misleadingly led to believe that consuming one Juul pod would be the equivalent of smoking a single pack of cigarettes, making the devices effective smoking cessation devices.

The U.S. Food and Drug Administration has not, however, approved claims that Juul e-cigarettes are effective to be used for that purpose, according to Paxton. 

Juul has also agreed to new sales and marketing restrictions as part of the Juul settlement, including no longer being able to market its e-cigarette products to consumers under the age of 35 and to have age verification requirements needed for all sales, Law360 reports. 

In June, the FDA said it was preparing an order that would take Juul’s e-cigarettes off the market entirely. 

If you or your child suffered seizures after vaping with a JUUL e-cigarette, you may benefit from participating in a free JUUL class action lawsuit investigation.

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