Arizona Attorney General Mark Brnovich and e-cigarette maker Juul Labs on Tuesday reached an agreement for a suit that alleged the company committed deceptive and unfair acts and practices.
The settlement will require the company to pay $14.5 million and make significant changes to its corporate practices in an effort to not sell to minors.
Brnovich’s lawsuit alleged JUUL and other e-cigarette providers used its highly-addictive nicotine products to appeal to and target young people while misleading them on the risks associated with those products.
“Today’s settlement holds JUUL accountable for its irresponsible marketing efforts that pushed Arizona minors toward nicotine and the addiction that follows,” said Brnovich. “Combatting the youth vaping epidemic remains a priority for our office with both our undercover Counter Strike program and zero tolerance for vaping companies that mislead or deceive.”
The company agreed to multiple changes in its practice:
- No marketing that appeals to or targets individuals under the age of 21, including the use of cartoons in advertising, and no advertising near schools.
- No publishing, marketing, or advertising material for JUUL Products on any social media platform, no engaging or paying social media influencers, and no use of persons under age 30 in its advertising.
- No JUUL-sponsored events where persons under 21 will be present.
Furthermore, the settlement funds will be used in a variety of manners to fight vaping addiction among minors:
- Cessation programs to help Arizona’s youth end their addiction to e-cigarettes;
- Education programs to prevent future youth e-cigarette use and addiction; and
- Programs to abate the impact the youth vaping epidemic has had in Arizona and to prevent such impact in the future.
- The remaining $2 million will be paid to the State for litigation reimbursement and deposited into the Consumer Protection–Consumer Fraud Revolving Fund.
— — —