Juul to pay $462 million for its part in youth vaping epidemic

Key takeaways:

• Juul will pay $462 million to six states and Washington, D.C.
• One expert told Healio the settlement sends a message that deceptive marketing practices will not be tolerated.

E-cigarette manufacturer Juul Labs must pay $462 million in the largest multistate agreement to date for the company that has been scrutinized for its advertisements and flavors that appeal to youth, according to a press release.

The settlement for Juul’s alleged part in the youth vaping epidemic was co-led by New York Attorney General Letita James and California Attorney General Rob Bonta. As part of the agreement, Juul will pay the $462 million to six states and Washington D.C.

New York specifically is set to receive $112.7 million to “support underage vaping abatement programs across the state,” according to the release.

The agreement is not only monetary. It also “places the most stringent restrictions on Juul’s marketing, sales, and distribution practices in order to protect and prevent minors from underage vaping,” the release said. Juul is now required to secure its products behind retail store counters and verify customer age when selling online.

Loren Wold, PhD, a professor and associate dean for research operations and compliance at Ohio State University’s College of Medicine, told Healio that the settlement “sends a message” to all companies selling vaping products, particularly to youth and adolescents “that specific marketing tactics that get young users hooked on their products will not be tolerated.”

"For example, giving away free products that taste ‘sweet’ or with other appealing flavorings that were noted to increase addiction. This was in naïve vapers (those who were not former combustible cigarette smokers), and was involved in the new generation of users hooked on vaping,” Wold said.

James said in the release that Juul “lit a nationwide public health crisis by putting addictive products in the hands of minors and convincing them that it’s harmless.”

“Today, they are paying the price for the harm they caused,” she said. “Too many young New Yorkers are struggling to quit vaping and there is no doubt that Juul played a central role in the nationwide vaping epidemic.”

Wold also mentioned the long-term effects of youth vaping and said researchers will not know organ-specific effects for years. Hopefully, he said, the settlement will spark more regulation for the products.

“We have only recently determined that young males who vape are setting themselves up for persistent adulthood heart disease, and whether this is reversible remains undetermined. In addition, a recent study noted that about 60% of young adults who vaped nicotine and/or THC self-described feelings of depression and anxiety, which could lead to other neurocognitive changes later in life,” Wold said. “Therefore, this settlement will hopefully cause increased regulation on the marketing and sale of these products and only allow appropriate users to purchase the products.”

In a statement, Juul Labs said the settlement “represents another critical part in our ongoing commitment to resolve issues from the company’s past.”

“The terms of the agreement, like prior settlements, provide financial resources to further combat underage use and develop cessation programs and reflect our current business practices, which were implemented as part of our company-wide reset in the fall of 2019,” the company said in the statement. “Since then, underage use of Juul products has declined by 95% based on the National Youth Tobacco Survey.”

The company said it has now settled with 47 states and territories and provided more than $1 billion.

“Now we are positioned to dedicate even greater focus on our path forward to maximize the value and impact of our product technology and scientific foundation,” the statement said.

References:

• Attorney General James secures $462 million from JUUL for its role in the youth vaping epidemic. https://ag.ny.gov/press-release/2023/attorney-general-james-secures-462-million-juul-its-role-youth-vaping-epidemic/. Published April 12, 2023. Accessed April 13, 2023.
• Statement by JUUL labs on settlement with seven states. https://www.juullabs.com/statement-by-juul-labs-on-settlement-with-seven-states/. Published April 12, 2023. Accessed April 13, 2023.