They’re accused of marketing harmful material to minors. Now, one e-cigarette company will have to pay up.
The office of Attorney General Todd Rokita has announced a near 16-million-dollar settlement between the state and JUUL. That money will go towards supporting prevention, education, harm reduction and mitigation efforts related to young people using electronic nicotine, known as vapes.
JUUL has been accused of lying about the true contents of their vape products, using ads to market the product specifically to children.
Attorney General Todd Rokita announced today that e-cigarette maker JUUL Labs Inc. will pay Indiana more than $15.7 million to settle allegations that the company deliberately marketed its products to minors despite the unlawfulness of selling e-cigarettes to children or adolescents. Indiana is just one of 32 states participating in a larger agreement under which JUUL will pay out nearly 435-million-dollars.
“My team and I fight daily to protect Hoosiers from improper business practices that put families at risk,” Attorney General Todd Rokita said in a press release, “wrongful actions that jeopardize children are especially repugnant and shameful. Fortunately, the money we have recovered in this settlement can go toward safeguarding the same young people targeted by the unethical marketing strategies employed by JUUL.”
JUUL has an option to pay the money over 6-10 years – with the total payment increasing the longer it takes to pay. If JUUL chooses the 10-year option, Indiana’s payout would exceed 17.1-million-dollars. JUUL’s first payment of $1,478,665 is due December 31st. All payments will be due on December 31st of each year.
Under the agreement with the Hoosier State, JUUL agrees to:
refrain from including depictions of persons under the age of 35 in any marketing.
do no social media advertising except for using testimonials of persons over age 35.
disclose in all advertising the amount of nicotine in their products.
no longer provide free samples, sponsorships, product placements, or merchandise sales with their brand name.
sell no flavored products unless approved by the FDA.
follow restrictions on product placement in retail stores.
observe quantity purchase limits on in-store and online purchases.
participate in specific compliance checks and monitoring for retail stores.
