Juul to pay 438 million to settle probe on marketing vapes to kids
Juul Labs, the e-cigarette company, has agreed to pay $438.5 million to settle a probe by the US Food and Drug Administration (FDA) and the Federal Trade Commission (FTC) over allegations that it illegally marketed its vaping products to children.
The settlement, announced on Thursday, resolves a complaint filed by the FDA and FTC in 2020, which accused Juul of using social media influencers and online ads to promote its products to minors. The agencies also alleged that Juul failed to disclose the risks of its products, including the potential for nicotine addiction and lung injury.
Under the terms of the settlement, Juul will pay $40 million to the FDA and $398.5 million to the FTC. The company will also be required to implement a comprehensive compliance program to ensure that its marketing and sales practices comply with federal laws and regulations.
The settlement is a significant blow to Juul, which has faced intense scrutiny over its marketing practices and the role it may have played in the vaping epidemic among youth. The company has faced numerous lawsuits and regulatory actions in recent years, and has been forced to suspend sales of its products in several countries.
The FDA and FTC have been cracking down on the vaping industry in recent years, citing concerns over the rise in youth vaping and the potential health risks associated with e-cigarette use. In 2020, the FDA issued a warning letter to Juul, citing the company's failure to comply with federal regulations and its use of misleading marketing claims.
The settlement is a significant step forward for the FDA and FTC, which have been working to address the vaping epidemic and protect public health. The agencies have also taken steps to regulate the vaping industry, including the introduction of new rules on e-cigarette sales and marketing.
In a statement, the FDA Commissioner, Dr. Stephen Hahn, said: "Today's settlement is a significant step forward in our efforts to protect public health and prevent the vaping epidemic among youth. We will continue to work tirelessly to ensure that the vaping industry complies with federal laws and regulations, and that the public is informed about the risks associated with e-cigarette use."
The FTC Chairman, Joseph Simons, added: "Today's settlement sends a strong message that the FTC will not tolerate illegal marketing practices that target children and undermine public health. We will continue to work with the FDA and other agencies to ensure that the vaping industry complies with federal laws and regulations."
The settlement is a significant blow to Juul, which has faced intense scrutiny over its marketing practices and the role it may have played in the vaping epidemic among youth. The company has faced numerous lawsuits and regulatory actions in recent years, and has been forced to suspend sales of its products in several countries.
In a statement, Juul said: "We are pleased to have reached a settlement with the FDA and FTC, which acknowledges our commitment to compliance and our efforts to address the vaping epidemic among youth. We will continue to work with the FDA and FTC to ensure that our marketing and sales practices comply with federal laws and regulations, and that we are doing everything we can to prevent youth vaping."