FDA agreed to suspend the case against Juul, and the court paused the ban on e-cigarettes.
E-cigarette manufacturer, Juul Labs, accepted a fine of $438.5 million in an attempt to settle a two-year probe by Puerto Rico and 33 states into the firm’s teenagers’ advertising methods. The electronic cigarette company became one of the top US firms manufacturing vaping material. The agreement also bars Juul’s product advertising to consumers under 35.
William Tong, the Connecticut Attorney General who did the negotiations along with the Texas and Oregon officials, announced the deal on Tuesday, saying they would use the settlement money in “programs nationwide to drive down tobacco use.” He stated, “JUUL’s cynically calculated advertising campaigns created a new generation of nicotine addicts. They relentlessly marketed vaping products to underage youth, manipulated their chemical composition to be palatable to inexperienced users, employed an inadequate age verification process, and misled consumers about the nicotine content and addictiveness of its product. The full public health ramifications of this misconduct are yet unknown.”
Juul considered the agreement “a significant part of our ongoing commitment to resolve issues from the past.” The company is also facing its product ban in the US. In June, the US FDA (Food and Drug Administration) decided to ban Juul products that failed to provide adequate health impact information. However, the Federal appeals court has currently kept the ban on hold.
However, the company is facing litigations in other states, and individual families and others have filed private lawsuits.
On Tuesday, Juul stated, “We remain focused on the future as we work to fulfill our mission to transition adult smokers away from cigarettes – the number one cause of preventable death – while combating underage use. We believe that once the FDA does a complete review of all of the science and evidence presented, as required by law, and without political interference, we should receive marketing authorization.”
The Federal survey revealed that the US-based company was involved in extensive marketing of its teen vaping products, which resulted in over a quarter of high-school teenagers using e-cigarettes in 2019.
Texas Attorney General, Ken Paxton, issued a statement where officials said that the firm “became a dominant player in the vaping industry by willfully engaging in an advertising campaign that appealed to youth, even though its e-cigarettes are both illegal for them to purchase and unhealthy for youth to use. The investigation found that JUUL relentlessly marketed to underage users with launch parties, advertisements using young models, social media posts, and free samples.”
Officials said that the settlement bans Juul Labs from marketing its products to individuals below 35 years old, restricts its in-store displays and access, online sales, etc. Tuesday’s agreement included states like Mississippi, Tennessee, Georgia, Ohio, and many others. According to KIRO-TV and WSOC-TV, Juul had settled arguments by paying $22.5 to Washington officials and $40 million to North Carolina earlier. However, the FDA continues to review Juul’s products and plans to ban them coming summer.