Juul Pays Hefty $440M Fine For Settlement After Lengthy Teen Vaping Probe | Will The Stop Operations?

After years-long investigation of vape giant Juul and 33 others, states across the country have finally reached a settlement to stop the marketing of the highly-addictive smoking alternative to the youth.

Issues of teen vaping have been rampant in the country, which prompted the states to sue the company.

However, Juul will not be ceasing operations given the hefty fine they have to pay to the states, but will only be limiting certain marketing efforts.

Juul Pays $440M Fine To 33 States in the United States

According to The Guardian, Juul Labs will be paying over $430 million as a settlement fee for the two-year investigation of their company after allegedly marketing vape products to the youth.

Thirty-three states, including Puerto Rico, have sued Juul for marketing their highly-addictive smoking alternative to the youth, which many have considered to be the reason for the surge in teen vaping in the country.

To be precise, Juul Labs will be paying $438.5 million for six to 10 years. At least $16M of the collected fine will be funneled to vaping prevention and education efforts in the states.

Connecticut Attorney General William Tong announced the deal earlier today.

"The investigation into Juul's marketing found that the company had "relentlessly marketed vaping products to underage youth" even though such purchases are illegal in the US, Tong said in a statement.

BBC reported a survey indicating that teen vaping has spiked in the country as "more than a quarter" of high schoolers began using e-cigarettes (vapes) around 2019.

However, a 40% decline was reported in teen vaping as online learning during the pandemic has forced teens to stay at home, limiting their use of the e-cigarette.

Per the years-long investigation, the states have found out that Juul has marketed its products to underage teens through various marketing efforts. These include product giveaways, social media posts with youthful ambassadors, and even launch parties.

Meanwhile, the company has acknowledged the settlement and affirmed that the decision was actually in line with their 2019 "company-wide reset" for the brand.

"We believe that once the FDA does a complete review of all of the science and evidence presented, as required by law, and without political interference, we should receive marketing authorization," Juul announced.

What Would Juul Do Now?

Despite reaching a grand settlement, Juul has yet to face other suits from personal plaintiffs and other states.

However, because of this, the company is now strained in marketing efforts.

They are now refraining to use cartoons, marketing to people under 35 years old, billboard and public transportation advertising, getting social media influences, and even placing ads on outlets that do not have 85% mainly adult audience.

Apart from this, Financial Times reported that the company is also embattled with a "marketing denial order" from the US Food and Drug Administration. Should they fail the appeal, they will be forced to withdraw their brands from the United States, accounting to 90% of the company's global sales.

This article is owned by Latin Post.

Written by: Ivan Korrs

WATCH: Juul to pay $438.5 million in e-cigarette settlement - From Reuters