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Juul to pay Texas $43 million in teen vaping settlement

Juul to pay Texas $43 million in teen vaping settlement

2022-09-09

On September 9, according to foreign reports, Juul Labs, one of the largest e-cigarette manufacturers in the United States, tentatively agreed to pay $439 million after an investigation into its marketing strategy.


Among them, Texas will receive $42.8 million in settlements, including 33 U.S. states and territories.


Texas Attorney General Ken Paxton, along with Connecticut and Oregon attorneys general, launched an investigation in February 2020. According to the press release, the investigation revealed that Juul Labs deliberately marketed its products to young people.


The survey shows that Juul promotes its products to young people through launches, social media posts, and more. The company also sells e-cigarettes in flavors such as mango, cucumber and mint to attract younger buyers. Most flavors were discontinued in 2018-2020.


The press release said Juul's original packaging was misleading because it implied the product contained little or no nicotine.


"When I launched this investigation more than two years ago, my goal was to ensure that Juul was held accountable for any wrongdoing in the past and that they reverse course to fully comply with future laws," Paxton said in a release.


Under the settlement, Juul Labs must comply with certain restrictions, including marketing restrictions to those under 35, in-store display restrictions, age verification for all sales, and more.


According to the press release, 33 states and territories will receive $438.5 million over six to 10 years. If Juul Labs extends the payment term to 10 years, stakeholders stand to gain as much as $476.6 million.


Paxton's office told Community Impact via email that the settlement will be finalized in the next few weeks and more information will be released on how the funds will be used.


In a Sept. 6 statement, Juul Labs said: "We will continue to focus on the future and work towards our mission to keep adult smokers away from cigarettes -- the number one cause of preventable death -- while combating underage human use.


The states and territories involved in the settlement are: 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.


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