Vape purveyor Juul Labs has settled lawsuits with seven US states and paid US$462 million (AU$690 million) after the states alleged that it misled consumers in its advertising by failing to warn that they contained nicotine and deliberately targeted underage consumers.
The lawsuits were filed way back in 2019 and California attorney general Xavier Becerra said at the time that Juul had “adopted the tobacco industry’s infamous playbook” and that its ads had “no regard” for public health and sought out “vulnerable targets.”
Juul, however, has not admitted to any wrongdoing despite settling with the states. Instead, it said the settlements “represents another critical part in our ongoing commitment to resolve issues from the company’s past.”
The payments made to the states will provide financial resources to “further combat underage use and develop cessation programs.”
Juul will have to “refrain” from marketing that directly or indirectly targets young people and will be prohibited from using anyone under the age of 35 in promotional material or funding.
Previously the company had purchased ads on Cartoon Network and other youth-focused sites.
The state of New York said that previous campaigns were “pervasive” and “included bright, colourful images of attractive, young models, appealed to underage youth.”
“By glamorizing vaping, while at the same time downplaying the nicotine found in vaping products, JUUL is putting countless New Yorkers at risk,” added Becerra.
Juul also engaged in “direct outreach” to high school students and one company rep told students at a New York school that its products were safer than cigarettes.
The company will also be prevented from operating youth education or prevention campaigns and sponsoring school-related activities, offering free or nominally priced Juul pods as samples to customers and placing its products in virtual reality systems.
Juul will also be required to secure its products behind retail store counters and verify the age of consumers that directly sell or promote its products online.
“With this settlement, we are nearing total resolution of the company’s historical legal challenges and securing certainty for our future. We have now settled with 47 states and territories, providing over US$1 billion (AU$1.5 billion) to participating states,” said Juul.
