RICHMOND, Va. – After JUUL launched an ad campaign targeted at younger users, the company has entered into an agreement that restricts their actions moving forward, with states and territories across the nation to receive payouts, according to a release by Attorney General Miyares’ office.
According to the release, the agreement between JUUL Labs and35 states and territories totaled $438.5 million, with Virginia set to receive $16.61 million over the next six to ten years.
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JUUL is also required to comply with terms that will change and limit their marketing practices, the release said.
“Youth vaping is an epidemic, and from the get-go, JUUL has been a leader in the e-cigarette industry. But JUUL targeted young people with deceptive social media advertising campaigns and misled the public about the product’s dangers. My office will continue to go after and hold accountable companies that market addictive products like e-cigarettes to minors, with no concern for their health or well-being,” said Attorney General Miyares.
The investigation showed that JUUL launched an advertising campaign that appealed to youth, marketing to underage users with advertisements that used young models, social media posts, and free samples, according to the release.
The release said that the products could be easily concealed, sold in flavors known to be attractive to underage users and that JUUL made the vapor less harsh on the throats of young and inexperienced users.
Additionally, according to the release, the products were misleading – JUUL did not clearly disclose on the original packaging that the product contained nicotine, and it also implied that it contained a lower concentration of nicotine than it actually did.
According to the release, as part of the agreement, JUUL has agreed to refrain from the following:
- Youth marketing,
- Funding education programs,
- Depicting people younger than 35 in any marketing,
- Use of cartoons,
- Paid product placement,
- Sale of brand name merchandise,
- Sale of flavors not approved by FDA,
- Allowing access to websites without age verification on the landing page,
- Representations about nicotine not approved by FDA,
- Misleading representations about nicotine content,
- Sponsorships/naming rights,
- Advertising in outlets unless 85 percent audience is adult,
- Advertising on billboards,
- Public transportation advertising,
- Social media advertising, other than testimonials by individuals over the age of 35, with no health claims,
- Use of paid influencers,
- Direct-to-consumer ads unless age-verified, and,
- Free samples.
The release said that the agreement also includes new restrictions on sale and distribution, addressing where the products may be displayed or accessed in stores, limits on sales both online and in-store, the requirement of age verification on all sales, and a retail compliance check protocol.