Attorney General: 34 states reach $438.5 million agreement with JUUL Labs
Attorney General John O' Connor announced on Tuesday that a $438.5 million agreement between JUUL Labs and 34 states and territories is resolving a two-year bipartisan investigation into the company's marketing and sales practices.
OKLAHOMA CITY (KFOR) - Attorney General John O' Connor announced on Tuesday that a $438.5 million agreement between JUUL Labs and 34 states and territories is resolving a two-year bipartisan investigation into the company's marketing and sales practices.
Out of the $438.5 million, Oklahoma will receive around $8.9 million. The settlement will also limit JUUL's marketing and sales practices of their vape products.
“I am pleased to work alongside other attorneys general in holding JUUL accountable for its irresponsible marketing efforts that pushed Oklahoma kids toward nicotine and addiction,” Attorney General O’Connor said. “JUUL has put countless Oklahoman minors at risk, and as attorney general I will fight to prevent another generation from becoming addicted to nicotine.”
According to a press release from the Attorney General, JUUL's vape advertisements include young and trendy-looking models to catch the attention of younger consumers. The ads also display flavors that are appealing to underage users.
The press release also added that JUUL's original packaging did not disclose that the product contained nicotine and hinted that it contained a lower concentration of the chemical than it actually did.
As part of the settlement, JUUL has agreed to refrain from:
- Youth marketing
- Funding education programs
- Depicting persons under age 35 in any marketing
- Use of cartoons
- Paid product placement
- Sale of brand name merchandise
- Sale of flavors not approved by FDA
- Allowing access to websites without age verification on landing page
- Representations about nicotine not approved by FDA
- Misleading representations about nicotine content
- Sponsorships/naming rights
- Advertising in outlets unless 85 percent audience is adult
- Advertising on billboards
- Public transportation advertising
- Social media advertising (other than testimonials by individuals over the age of 35, with no health claims)
- Use of paid influencers
- Direct-to-consumer ads unless age-verified, and
- Free samples.
The finalization of the settlement can take up to 3-4 weeks. JUUL is expected to pay the $438.5 million over the course of six to ten years, but the Attorney General says if the vape manufacturer chooses to pay over the full ten years, their total could reach up to $476.6 million.
For more information regarding the settlement, visit this link.