From staff and wire reports
COLUMBUS – Electronic cigarette maker Juul Labs has agreed to pay nearly $440 million to settle a two-year investigation by Ohio and 32 others states into the marketing of its high-nicotine vaping products, which have long been blamed for sparking a national surge in teen vaping.
The settlement, which includes numerous restrictions on how Juul can market its products, resolves one of the biggest legal threats facing the beleaguered company, which still faces nine separate lawsuits from other states. Additionally, federal health regulators are trying to ban the company’s products.
“No nicotine marketing to kids! It was wrong when it was Joe Camel, and it’s wrong when it’s JUUL’s “Miint” and “Fruut” flavors and their influencer-led targeting. This settlement puts an end to Juul’s trawling for new addicts among our children,” Ohio attorney general Dave Yost said in a statement.
The states’ investigation found that Juul marketed its e-cigarettes to underage teens with launch parties, product giveaways and ads and social media posts using youthful models and influencers, according to a statement.
The company also sold cigarettes the states deemed “youth-friendly,” such as Miint, Fruut, Bruule, Tobaac, Cool Cucumber, Coco Mint and Mango, Yost said.
Under terms of the settlement, the company has agreed not to market to youths. The restrictions include a prohibition on depicting anyone under age 35 or using cartoons in any marketing, paying for product placement, selling flavors not approved by the Food and Drug Administration or making representations about nicotine not approved by the FDA, Yost said.
The $438.5 million will be paid out over a period of six to 10 years.
The company currently makes up about one third of the U.S. retail vaping market, down from 75% several years ago.