Consumer News

AG Derek Schmidt: Kansas to receive nearly $10 million in multistate settlement with JUUL Labs

Release Date: Sep 06, 2022

Settlement requires e-cigarette manufacturer to change marketing practices that appealed to youth

TOPEKA – (September 6, 2022) – Kansas is expected to receive nearly $10 million as part of a multistate agreement in principle with JUUL Labs, resolving a two-year investigation into the e-cigarette manufacturer’s marketing and sales practices, Kansas Attorney General Derek Schmidt said today.

Schmidt said the settlement would force JUUL to comply with strict injunctive terms limiting their marketing and sales practices. Kansas is expected to receive $9.8 million as part of the $438.5 million settlement between JUUL and 34 states. The money will be paid over six to 10 years. States are finalizing and executing the settlement documents, which should completed in approximately three to four weeks.

The multistate investigation revealed that JUUL became a dominant player in the vaping marking by willfully engaging in an advertising campaign that appealed to youth, even though its e-cigarettes are both illegal for them to purchase and are unhealthy for youth to use. 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. JUUL also manipulated the chemical composition of its product to make the vapor less harsh on the throats of the young and inexperienced users. To preserve its young customer base, JUUL relied on age verification techniques that it knew were ineffective.

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.  Consumers were also misled to believe that consuming one JUUL pod was the equivalent of smoking one pack of combustible cigarettes. The company also misrepresented that its product was a smoking cessation device without FDA approval to make such claims.   

As part of the settlement, JUUL has agreed to refrain from specific marketing practices that target youth, as well as establishing stricter age verification controls on websites, direct-to-consumer advertising, and free samples. The agreement also includes sales and distribution restrictions, including where the product may be displayed/accessed in stores, online sales limits, retail sales limits, age verification on all sales, and a retail compliance check protocol.

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