A federal jury announced a landmark settlement that orders electronic cigarette giant Juul Labs Inc. to pay $40 million to North Carolina in litigation that accuses the company of fueling teen vaping.
It is first of its kind agreement with a state. North Carolina Attorney General Josh Stein sued the company by placing allegations that Juul’s unfair and deceptive marketing strategies encouraged the use of vaping products among the youth.
The agreement states that the vaping manufacturer Juul will no longer advertise its products to anyone under 21 in North Carolina. It also states that the company should limit the sales of its products by selling only behind counters at retailers who have ID scanners that will detect the customer's age.
Juul launched e-cigarettes in 2015 post which the use of the products raised to 70% among the teens. The U.S. Food and Drug Administration declared it as an epidemic of underage vaping due to the significant growth in the number of vapers. Vaping products have nicotine which is very addictive and prevents brain development, as stated by the health experts.
A spokesperson for Juul said that the company is already experiencing a decline in the sale of its products post the discontinuation of advertising and social media promotion. The company is effectively looking forward to combating underage vaping by taking necessary measures.
Juul faces individual lawsuits from several states, and since February 2020, a group of 39 state attorneys general is cooperatively investigating the company’s marketing and products. The company even faces hundreds of personal injury lawsuits, which include claims from customers and families of young people affected because of vaping. All these lawsuits are consolidated before Judge William H. Orrick in a California federal court.
