Topline
A federal appeals court issued a temporary stay Friday blocking a nationwide ban on Juul Labs’ electronic cigarette products, just a day after the Food and Drug Administration ordered Juul merchandise to be pulled off store shelves due to marketing concerns.
After the FDA banned Juul products in the U.S., an appeals court in Washington, D.C. granted a … [+]
Key Facts
Juul argued in a court filing Friday that the FDA ban was unlawful, calling it an “arbitrary” ruling that has nothing to do with safety.
The D.C. Circuit Court of Appeals judges who issued the stay Friday did not rule on the merits of Juul’s argument, but determined the company could continue selling its products while the case proceeded in court.
The FDA told Forbes the agency “does not comment on possible, pending or ongoing litigation.”
Key Background
The FDA claims Juul has not been able to prove its marketing meets FDA standards by failing to demonstrate that its products are safe. The federal agency has specifically noted Juul provided “conflicting” data on whether its e-liquid pods contain harmful chemicals—a claim the company has pushed back on. Joe Murillo, Juul’s chief regulatory officer, said in a statement Thursday the company “appropriately characterized the toxicological profile” of its products, saying it remains “committed to doing all in our power to continue serving the millions of American adult smokers who have successfully used our products to transition away from combustible cigarettes.” The ban capped what had been a rocky few years for the company, which attempted to rebrand itself starting three years ago amid increasing criticism its flavored e-cigarette products targeted teens. Juul began limiting its flavors to tobacco and menthol after the FDA banned fruity flavors in 2020. The past few years have also been marked by layoffs, lawsuits and diminishing sales for Juul, which at one point controlled 70% of the U.S. vape market.
Big Number
$1 billion. That’s at least how much other vape companies stand to gain if Juul products are pulled off the market, according to Nielsen data.
Further Reading
Juul E-Cigarette Ban Creates $1 Billion Opportunity For Vape Companies (Forbes)
Source: https://www.forbes.com/sites/nicholasreimann/2022/06/24/appeals-court-halts-ban-on-juul-vaping-products-for-now/