E-cigarette maker Juul to pay states $462M over allegations it marketed to underage vapers

The embattled e-cigarette maker Juul Labs Inc. will pay $462 million to settle lawsuits filed by six states and the District of Columbia.

Juul settled cases with California, Colorado, Illinois, Massachusetts, New Mexico and New York over allegations the e-cigarette maker marketed to underage vapers.

The company, which denied any wrongdoing, said it is "nearing total resolution" of legal claims and that it has settled with 47 states and territories for over $1 billion.

Wednesday's settlement, announced by New York Attorney General Letitia James and California Attorney General Rob Bonta, is the largest settlement with states announced to date. The settlement requires Juul to place its products behind retail store counters and verify the age of consumers that sell or promote products online.

California will receive the largest payment, $175.8 million. New York will get $112.7 million. Both states said the funds will be used on programs to support youth vaping prevention efforts.

“Where I see my son and daughter, Juul simply saw dollar signs,” said Bonta in a press conference Wednesday.

2022 SURVEY: More than 2.5M middle and high school students still vapeLATEST: Majority of Americans support blocking sales of all tobacco products

James said Juul took a "page out of big tobacco’s playbook" and misled consumers about the health risk of their products.  

"The e-cigarette company falsely led consumers to believe that its vapes were safer than cigarettes and contained less nicotine,” James said Wednesday. “However, just one pod of Juul contains as much nicotine as a whole pack of cigarettes.”

In at least one New York City school, a Juul representative falsely told high school freshman that its products were safer than cigarettes, she said.

Silicon Valley-based Juul had been the most recognizable brand in vaping, and the states alleged the company targeted underage vapers. Last year, the FDA sought to ban Juul's vaping and e-cigarette products but paused the ban less than two weeks later to allow for additional review. 

The teen vaping crisis 

Teen vaping reached all-time highs in 2019 when more than one quarter of high school students used nicotine-delivering devices, according to the National Youth Tobacco Survey.

The 2022 survey showed 14.1% of high school students and 3.3% of middle school students vaped at least once over the past 30 days. Among teens who vape, 14.5% reported using Puff Bar and 12.5% cited Vuse as usual brands. 

In a statement, Juul said the settlement with six states and the District of Columbia "represents another critical part in our ongoing commitment to resolve issues from the company’s past."

The company said the settlement provided funds to "combat underage use and develop cessation programs" and reflect the company's "current business practices, which were implemented as part of our company-wide reset in the fall of 2019. Since then, underage use of Juul products has declined by 95% based on the National Youth Tobacco Survey." 

Robin Koval, CEO and President of the Truth Initiative, praised the multistate settlement, noting it will provide "hard-won funds to educate young people, prevent them from ever starting to use tobacco products and help them stop if they do."

Risks of vaping 

The Centers for Disease Control and Prevention says nicotine is addictive and can harm adolescent brain development. National Institutes of Health-funded studies suggest vaping might increase cardiovascuar risk. However, long-term risks of vaping are still being studied.