Juul, a well-known brand of e-cigarettes, will pay more than $462 million to six states and Washington, D.C., in a settlement over the accusation that it spread the vaping habit among the nation’s youth.
Over the next eight years, Juul must pay the state of California $175.8 million, New York $113 million, Illinois $67.6 million, Massachusetts $41.7 million, Colorado $31.7 million, New Mexico $17 million, and D.C. $15 million.
Juul Labs must also stop using people under the age of 35 to advertise its products, per the ruling in the lawsuit filed by California Attorney General Rob Bonta and New York Attorney General Letitia James, according to CNN Business.
The ruling also directs retailers to keep the vaping devices behind the counters at stores where they’re sold and ensure those purchasing the products are of legal age.
A 2022 Food and Drug Administration ruling mandated that Juul Labs pull its products from the United States market. However, its products remain on shelves due to a court order temporarily blocking the mandate.
A spokesperson for Juul told CNN that this most recent settlement indicates the company is “nearing total resolution” and “securing certainty for our future” after the “historical legal challenges” it has faced.
“Now we are positioned to dedicate even greater focus on our path forward to maximize the value and impact of our product technology and scientific foundation,” the spokesperson continued.
The $462.5 million settlement is the largest Juul has been made to pay so far. The company stood accused of false advertising regarding the safety of its products and purposefully aiming those products at teenagers.
In September, Juul Labs agreed to pay more than $438.5 million to 34 states and territories for marketing toward teens.
Juul Labs said in December that it had settled 5,000 cases for approximately 10,000 plaintiffs.
Another case in West Virginia was settled on Monday when Juul agreed to pay $7.9 million. That lawsuit also involved Juul’s role in advertising directed at young teenagers.
Attorneys General James and Bonta spoke to the media via a press conference in response to the settlement of their lawsuit.
“Taking a page out of Big Tobacco’s playbook, Juul misled consumers about the health risks of their products. The e-cigarette company falsely led consumers to believe that its vapes were safer than cigarettes and contained less nicotine. However, just one pod of Juul contains as much nicotine as a whole pack of cigarettes,” James said, per CNN.
“A Juul representative falsely told high school freshmen that its products were safer than cigarettes.”
Bonta echoed the comments of his New York counterpart and said that it was time to hold the company accountable for allegedly helping to hook younger people on nicotine products.
“Today, I’m here as California’s attorney general, but I’m also here as a father of three. A father who is disgusted that where I see my son and daughters, Juul simply saw dollar signs,” Bonta said via CNN.
“A father who’s enraged by the nefarious tactics Juul deployed to hook our children on their products: bright, attractive ads that flaunted young people enjoying the e-cigarettes; giveaways at concerts and festivals; sleek, easily concealed products; a recipe that ratcheted up the amount of nicotine while using a chemical formulation that made it easier for new users to stomach; all masked with fun flavors.”
According to the FDA, more than 2.5 million middle and high school students reported using vaping products in 2022.
The FDA asserts that vaping is unsafe. However, the long-term effects of vaping and whether it’s safer than smoking are not yet certain.
