Key takeaways:
- Juul Labs Inc. has agreed to pay $462 million to settle claims by six US states and the District of Columbia that it unlawfully marketed its addictive products to minors.
- The settlement is intended to protect minors from underage smoking and places the most stringent restrictions on Juul’s marketing, sales, and distribution practices.
- The settlement comes as the US Food and Drug Administration (FDA) has been cracking down on the e-cigarette industry, which has seen a surge in youth vaping.
Juul Labs Inc., the e-cigarette maker, has agreed to pay $462 million to settle claims by six U.S. states and the District of Columbia that it unlawfully marketed its addictive products to minors. The settlement, which was co-led by New York Attorney General Letitia James and California Attorney General Rob Bonta, is the largest multi-state settlement yet for the troubled company.
The settlement will require retailers to secure Juul products behind counters and verify the age of purchasers. Juul must also cease using people under 35 years old in its marketing materials that directly or indirectly target young people. In addition to the state settlements, the company last year agreed to pay $1.7 billion to settle thousands of lawsuits by local government.
The settlement is intended to protect minors from underage smoking and places the most stringent restrictions on Juul’s marketing, sales, and distribution practices. New York’s Attorney General Letitia James said in a statement that the settlement “sends a clear message to companies that they must prioritize the health of our children over profits.”
The settlement comes as the US Food and Drug Administration (FDA) has been cracking down on the e-cigarette industry, which has seen a surge in youth vaping. The FDA has issued warnings to Juul and other companies, and has threatened to ban flavored e-cigarettes.
Juul Labs Inc. has agreed to pay $462 million to settle claims by six US states and the District of Columbia that it unlawfully marketed its addictive products to minors. The settlement, which is the largest multi-state settlement yet for the troubled company, is intended to protect minors from underage smoking and places the most stringent restrictions on Juul’s marketing, sales, and distribution practices. The settlement comes as the US Food and Drug Administration (FDA) has been cracking down on the e-cigarette industry, which has seen a surge in youth vaping.
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