Virginia to receive $16.6M in settlement with JUUL

Virginia is expected to receive more than $16.6 million during a six-to-10-year period as part of a $438.5-million, 35-state and territory settlement with JUUL Labs. The settlement resolved a two-year bipartisan investigation into the e-cigarette manufacturer’s marketing and sales practices.

JUUL also is required to comply with a series of strict injunctive terms severely limiting their marketing and sales practices.

“Youth vaping is an epidemic, and from the get-go JUUL has been a leader in the e-cigarette industry,” said Virginia Attorney General Jason Miyares. “But JUUL targeted young people with deceptive social media advertising campaigns and misled the public about the product’s dangers. My office will continue to go after and hold accountable companies that market addictive products like e-cigarettes to minors, with no concern for their health or well-being.”

Though it is illegal and unhealthy for youngsters to purchase and use e-cigarettes, the multistate investigation revealed that JUUL rose to its position as the most dominant player in the e-cigarette market by willfully engaging in an advertising campaign that appealed to youngsters.  JUUL also manipulated the chemical composition of its product to make the vapor less harsh on the throats of the young and inexperienced users, according to the investigation.

Additionally, it found, JUUL deceived consumers by not clearly disclosing on the original packaging that the product contained nicotine, also implying that it contained a lower concentration of nicotine than it actually did. Consumers also were misled to believe that consuming one JUUL pod was the equivalent of smoking one pack of combustible cigarettes. The company also misrepresented that its product was a smoking cessation device without FDA approval to make such claims.

As part of the agreement, JUUL agreed to refrain from youth marketing, funding education programs, depicting people 35 or younger in any marketing, using cartoons, engaging in paid product placement and a number of other marketing actions.

The agreement also includes sales and distribution restrictions, including where the product may be displayed and accessed in stores, online sales limits, retail sales limits, age verification on all sales, and a retail compliance check protocol.