HARRISBURG – The Pennsylvania Attorney General’s Office has announced a $38.8 million settlement with JUUL Labs, Inc. in association with claims the company jeopardized the health of Pennsylvanians, specifically youths whom JUUL targeted with its high nicotine-content products.
“JUUL knowingly targeted young people with tactics similar to the tobacco companies’ playbook. They disregarded their growing audience of young users, taking no action, as their market share skyrocketed on the backs of American kids. About 13 percent of Pennsylvania students have vaped in the past 30 days – this settlement is only the beginning of keeping our kids safe from the dangers of vaping,” Attorney General and Governor-elect Josh Shapiro said.
“The progress we’ve made over the years to prevent youth nicotine addiction was at risk of being totally undone by JUUL starting what FDA has called a youth vaping epidemic. We can’t undo that harm overnight, but actions like this settlement and other steps being taken by state and federal partners are making progress in protecting kids and public health.”
The Commonwealth and Shapiro had filed suit in the Philadelphia County Court of Common Pleas against San Francisco-based JUUL Labs, Inc. in February 2020.
The lawsuit accused JUUL of misleading the public and specifically, teenagers, by marketing electronic cigarettes as a way to stop smoking – but not acknowledging that their vaping products provide more nicotine than a traditional cigarette.
Other deceptive marketing practices JUUL allegedly employed were an aggressive campaign directed towards the teenage customer base, through direct marketing, in stores and notably, on social media.
The complaint alleged that product flavors like Peanut Jam, Spicy Watermelon, Cinnamon Snap and Coco Mint were utilized as a way to make the product more attractive to teenage users.
In September 2019, the U.S. Food & Drug Administration issued a warning that JUUL had illegally marketed its products by claiming they were safer than cigarettes.
JUUL products have been on the market since July 2015 and the suit sought to compel the company to stop selling its products in Pennsylvania. Nearby New Jersey had already enacted a ban of flavored electronic cigarettes.
The states of New York and California, a number of Pennsylvania school districts and the district attorneys of both Bucks County and Montgomery County, had also sued the manufacturer. In some instances, governments hired private lawyers to pursue these cases on contingency fees.
Attorney General’s Office Outlines Terms of Settlement with JUUL
According to the terms of the settlement, JUUL is bound to enact the following stipulations:
- JUUL is prevented from targeting JUUL sales to youth within Pennsylvania.
- JUUL will begin to disclose the amount of nicotine content in milligrams per milliliter and as a percentage in terms of the total volume of a JUULpod.
- JUUL will not make any claims or representations that compare the nicotine content to combustible tobacco products.
- JUUL will not sponsor events in Pennsylvania unless at an Adult-Only facility.
- JUUL advertising in Pennsylvania will be limited to media or outlets with audiences comprised of at least 85% adults.
- JUUL will be prevented from using billboards and placing or renewing placement of any outdoor advertising within 1,000 feet of any elementary, middle, high school or public playground in Pennsylvania.
- JUUL will not publish any marketing, promotional or advertising materials on any social media platform accessible in Pennsylvania with the exception of testimonial videos of people over 35 years of age or older and non-promotional communications.
- JUUL will not use any testimonials or other advertising materials that make a claim or representation that JUUL products are safer than combustible tobacco products.
- JUUL will maintain a retailer compliance program to conduct unannounced compliance checks at Pennsylvania retailers to ensure they are compliant with state and federal laws regarding the minimum age to buy tobacco products and JUUL’s bulk sale restrictions.
- JUUL will limit online sales of JUUL products to no more than two JUUL devices a month, 10 JUUL devices per calendar year, and 60 JUULpods per month, and JUUL will take reasonable steps to limit retail sales to one JUUL device and/or 16 JUULpods per transaction.
- JUUL will have a compliance officer responsible for addressing enforcement of the terms of the agreement and responding to concerns presented by the Pennsylvania Department of Health and Office of Attorney General.
The totality of the $38.8 million in settlement funds will be paid to the Pennsylvania Department of Health and its Bureau of Health Promotion and Risk Reduction, to fund programs aimed at reducing the harms alleged by the Attorney General’s Office in its 2020 lawsuit.
These will include programs that will reduce or eliminate tobacco-related death and disease in Pennsylvania through innovation, utilization of resources, and promotion of smoke-free environments and tobacco-free lifestyles. The funds will also be used to prevent youth and young adults from beginning to use tobacco products and to provide quitting options for adults and youth.
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com