JUUL Reaches $440M Settlement with Multiple States

E-cigarette manufacturer JUUL has reached a deal with 34 states, as well as Puerto Rico, according to announcements from the participating states and JUUL itself.

The agreement will resolve a two-year investigation into JUUL’s marketing and sales practices, Connecticut Attorney General William Tong’s office said in their press release. The deal will impose an injunction on the e-cigarette maker in addition to financial penalties. JUUL will no longer be able to depict anyone under 35 using their product in marketing, and cannot advertise on billboards and on public transit, among other conditions.

The press release alleged that JUUL rose to dominance in the e-cigarette marketplace through an advertising campaign that was designed to appeal to youth, despite their product being banned for sale to minors.

“The investigation found that JUUL relentlessly marketed to underage users with launch parties, advertisements using young and trendy-looking models, social media posts and free samples. It marketed a technology-focused, sleek design that could be easily concealed and sold its product in flavors known to be attractive to underage users,” the Connecticut press release said.

“The investigation further revealed that JUUL’s original packaging was misleading in that it did not clearly disclose that it contained nicotine and implied that it contained a lower concentration of nicotine than it actually did. “

JUUL has been involved in approximately 100 federal court cases per month since 2020, according to analytics. 91% of these complaints have been filed as product liabiltiy cases, and JUUL is the defendant 97% of the time.

The states signing onto the agreement include Alabama, Arkansas, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Kentucky, Maryland, Maine, Mississippi, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, Nevada, Ohio, Oklahoma, Oregon, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Wisconsin, and Wyoming.