E-cigarette maker Juul has agreed to pay $462 million to settle claims that it illegally marketed its products to minors in six US states, Reuters reports.
This settlement brings Juul's total payment to 45 states to more than $1 billion.
Juul Accused of Marketing Campaigns Targeting Minors
The states accused Juul of using glamorous advertising campaigns to target minors and falsely marketing its e-cigarettes as less addictive than cigarettes.
As a result of the ensuing public health crisis, minors who thought they were doing something harmless became addicted to the products. Colorado, Illinois, Massachusetts, New Mexico, New York, and the District of Columbia were all part of the agreement.
The New York Times reports that attorneys general in those states conducted investigations that revealed Juul executives were aware that their initial marketing enticed teenage users to buy their vaping pens but did little to address the issue as the adolescent vaping rate blew up.
In the latest settlement, Juul claimed that the use of its products by people under 18 had dropped by 95% since the fall of 2019 when it changed its marketing practices as part of a company-wide reset.
More Lawsuits
Despite this agreement, Juul is still facing a lawsuit from Minnesota, where a trial is currently taking place, as well as lawsuits or open investigations from Florida, Michigan, Maine, and Alaska.
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In addition to the state settlements, the company agreed to pay $1.7 billion last year to settle thousands of lawsuits from local governments and individual consumers.
Under regulatory pressure, Juul withdrew most of its flavors from the market in 2019 and suspended much of its advertising. The US Food and Drug Administration (FDA) briefly banned the products in June, but it later suspended the ban and agreed to reconsider the action after the company filed an appeal.
According to federal health officials, an estimated 2.55 million US middle and high school students used e-cigarettes four months earlier in 2022.
Furthermore, 42.3% reported using them regularly, and 27.6% reported using them daily.
Nicotine in adolescence can harm the parts of the brain that control attention, learning, mood, and impulse control. The CDC has noted that using nicotine in adolescence may raise the risk of future addiction to other drugs.
Claim Juul Settlement
Before the latest settlement, a $255 million payout for JUUL product buyers in the United States who bought their products on or before December 7, 2022, was already announced. The settlement aims to compensate eligible class members for JUUL-related damages and injuries.
Class members who wish to receive payment from the settlement must file a claim through the designated website. Those who received an email or a postcard about the settlement can make a claim by clicking on the link in the email or returning the postcard.
Class members may also request a paper claim form from the Settlement Administrator if they prefer. However, the deadline to file a claim for the settlement payment is July 14, 2023.
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