CNN reports that Juul Labs, an electronic cigarette manufacturer, has reached a settlement worth $462 million with six states and the District of Columbia. This is the largest settlement the company has ever made.
Juul products should be protected behind age verification counters. In marketing materials targeting young people, the vaping giant must stop using actors younger than 35 years of age.
Rob Bonta, California Attorney General, said that Juul made him “disgusted” as well as “enraged”. He said that Juul “reignited a youth nicotine addiction epidemic.”
Bonta’s State is among several that received a portion of the large settlement over an eight-year period. California was the winner of the largest settlement with $ 175.8 million, while New York received almost $113 million. Illinois will receive $67.6 million, Massachusetts will receive $41.7 million, while New Mexico and Colorado will each get $31.7 million and $17 million.
D.C. received $15 million, the lowest amount in the settlement.
Letitia James, New York’s Attorney General, said that the company was “taking big tobacco’s lead” and misleading consumers about the risks associated with their products.
Juul made consumers believe that it was safer than cigarettes, and had less nicotine.
Juul was also accused in the lawsuit of selling directly to high school students. Juul representatives were accused of telling high school freshmen falsely that their products are safer than cigarettes.
CNN was informed by a spokesperson for Juul that the company is “nearing complete resolution” of historical legal issues. This means that the company can now focus on its product’s scientific and technological foundation.
Juul settled with 33 states in September 2022 and agreed to $438.5 million. This amount was approximately 25% of Juul’s total U.S. sales in 2021.
A CNN report estimates that approximately 2.5 million high school and middle school students used e-cigarettes by 2022. The study found that 14% of high school students reported using e-cigarettes in the last 30 days. This includes 3.3% of middle school students.
More than 42% of children said that they used the products often, and more than 27% said that they use them every day.