Juul To Pay $438 Million To Settle Probe Into Underage Marketing Scheme

Juul must also comply with “strict injunctive terms severely limiting their marketing and sales practices,” according to a press release from Connecticut Attorney General William Tong, who led the investigation along with Texas Attorney General Ken Paxton and Oregon Attorney General Ellen Rosenblum.

The investigation found Juul marketed its nicotine products with launch parties, product giveaways, ads and social media posts.

In a statement to Forbes, a company spokesperson called the settlement a “significant part of our ongoing commitment to resolve issues from the past,” and that it is committed to “combating underage use.”

According to Tong, Juul “relentlessly marketed vaping products to underage youth, manipulated their chemical composition to be palatable to inexperienced users, employed an inadequate age verification process and misled consumers about the nicotine content and addictiveness of its products.”

The settlement money will be allocated towards nationwide programs aimed at reducing tobacco use, Tong stated.

The settlement comes nearly three months after the Food and Drug Administration banned Juul vaporizers from the market over claims it did not meet the administration’s standards, which Juul appealed and the FDA suspended; the company is still awaiting a further decision.