JUUL Labs to Pay $462 Million for Role in “Epidemic”
JUUL Labs Inc., the California-based company that has been a leader in the electronic cigarette (e-cigarette) and vaping market, has agreed to pay nearly half a billion dollars to settle a multidistrict federal lawsuit that included litigation file by New York State Attorney General Letitia James in 2019. According to James, about one-quarter of the settlement will go to the state of New York. The lawsuit originally filed by James alleged that JUUL intentionally marketed an unsafe product to minors. They also contended that, though JUUL’s product was addictive (containing nicotine), the company included no product warnings from its introduction into the market in 2015 until 2018.
James likened the actions of JUUL to those of many big tech companies, which she said have “fueled a mental health crisis among young people with…addictive products…” She noted that, when JUUL introduced its products to the market, underage vaping increased dramatically. James said that the settlement funds in New York will be used in communities and schools to provide education about the real consequences of vaping. The money will be distributed to all counties, to the Board of Cooperative Educational Services, and to the five largest cities in the state.
In addition to the monetary award, the settlement also requires that JUUL ensure that its products are found and displayed behind the counter in any retail establishment, and that consumers only be allowed to purchase JUUL products after appropriate age verification. The settlement also:
- Prevents JUUL from engaging in marketing that directly or indirectly targets minors
- Limits the amount of product a person can purchase online or at a retail establishment
- Prevents JUUL from giving out free or nominally priced samples to consumers
- Requires that JUUL conduct regular compliance checks at a minimum of 5% of its New York retail outlets
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