Juul Settles with State of Florida for $79M – Legal Reader

Florida joins others in settling litigation with Juul claiming the corporate markets to underaged customers.

Juul Labs, a preferred e-cigarette firm, has agreed to pay $79 million to the state of Florida and settle for new promoting restrictions as a part of a settlement over claims that the corporate misled shoppers and marketed its vaping merchandise to minors. The lawsuit, filed by the Florida Lawyer Common’s Workplace in 2023, accused Juul of downplaying the dangers of nicotine whereas utilizing techniques that appealed to youngsters. This was removed from the primary time that firm had confronted points over claims it has been advertising and marketing its merchandise to underaged customers.

As a part of the settlement, Juul will contribute $30 million to a newly established Vape Free Florida Fund. This initiative will assist enforcement of legal guidelines geared toward stopping underage vaping and limiting how these merchandise are marketed. An extra $49 million will go right into a belief fund managed by the Florida Division of Authorized Affairs. The settlement funds as a result of state of Florida can be distributed over the subsequent seven years.

Juul should additionally adjust to strict new advertising and marketing guidelines. The corporate is banned from utilizing fashions youthful than 35 in its commercials, and it can’t embrace branding or logos in tv exhibits, films, or different types of leisure. Billboard promoting can also be prohibited, together with any comparisons between Juul’s nicotine content material and that of conventional cigarettes. Moreover, Juul is barely permitted to promote in media the place a minimum of 85% of the viewers is confirmed to be adults.

Florida Lawyer Common James Uthmeier praised the settlement, emphasizing the state’s dedication to decreasing youth vaping. He mentioned in the course of the press convention within the Tampa Workplace of the state lawyer normal (AG), “We’re pleased with this settlement. I acknowledge Juul for working effectively with our workplace. We started this challenge as events on completely different sides of a V in a lawsuit, and in the present day we finish as companions which are working collectively, working to guard our households and our children.”

He said that defending kids from dangerous merchandise stays a high precedence and that this settlement reinforces Florida’s management within the struggle towards underage nicotine use. Whereas Juul denies any wrongdoing, the corporate has been hit with comparable lawsuits in different states, resulting in multi-million-dollar settlements and elevated laws on how vaping merchandise are marketed.

In April 2023, Juul agreed to a $462 million settlement with six states and the District of Columbia over allegations that the corporate focused minors, an settlement that was met after one other $439 million settlement with 33 different states. This deal, introduced by attorneys normal from states together with California and New York, required the corporate to secured merchandise behind retailer counters and verifying on-line patrons’ ages.

Critics of Juul’s merchandise have lengthy argued that its modern and trendy gadgets, together with its flavored nicotine pods, have contributed to an increase in teen vaping. Whereas youth vaping charges have, fortunately, declined general lately, public well being officers proceed to observe the affect of all e-cigarettes at present available on the market.

With this settlement, the state of Florida joins different states in securing monetary penalties and coverage adjustments from Juul, signaling an ongoing effort to curb underage vaping and maintain e-cigarette producers accountable for his or her advertising and marketing practices.

Sources:

Juul Labs swimsuit: AG pronounces $79 million settlement over advertising and marketing to children claims

Juul to Pay $462 Million to Six States for Advertising and marketing to Children