Juul fined $438.5 million for promoting products to teens

E-cigarette maker Juul has agreed to pay a total of $438.5 million to settle claims from 34 U.S. states and territories that accused the company of advertising its products to minors. According to Reutersas part of the settlement agreement reached, the manufacturer will abandon a number of marketing techniques, but the company does not admit its guilt, calling the settlement “an important part of our desire to deal with the problems of the past.”

A two-year investigation initiated by the states of Connecticut, Texas and Oregon found that Juul knowingly advertised e-cigarettes to minors, including through the use of images of its products in films and cartoons, the use of images of young people in advertising, giving away free samples, advertising campaigns in social networks, presentations and the like. Under the terms of the settlement, Juul will no longer be able to advertise its products to people under the age of 35, will not be able to display them in store windows, and the number of Juul e-cigarettes sold in physical stores and online will be limited.

The company has previously settled similar claims in four other states. And several more states continue to file claims against Juul – several thousand lawsuits have also been filed against the manufacturer from local governments and individual citizens, which are being considered in federal court in San Francisco. The first trials for these claims will begin in November. Against the background of all these claims and proceedings, the value of Juul itself has fallen dramatically over the past three years. Altria Group previously reported that its 35 percent stake in Juul was worth $12.8 billion in March 2018, and only $450 million in July 2022.

Alena Miklashevskaya