An e-cigarette company has agreed to pay $79 million to the state of Florida as part of a settlement of a lawsuit accusing Juul Labs Inc. of marketing its vape products in ways that targeted youths.
State Attorney General James Uthmeier announced the settlement on March 10, saying that the agreement would bar Juul from marketing, promoting or advertising the company’s nicotine products to children. Previously, the Attorney General’s Office had filed a lawsuit against Juul, accusing the company of selling addictive products in flavors known to be attractive to minors.
A part of the settlement funds – $30 million – will be earmarked for the state’s Vape Free Florida Fund to bolster enforcement of state laws governing nicotine and vape products, according to the Attorney General’s Office.
“As a father, the safety and wellbeing of children is top of mind, all the time,” Uthmeier said in a prepared statement. “Florida has been a leader in the fight to end teen vaping, and I’m proud to announce this monumental settlement with Juul.”
Under the provisions of the settlement, the company has pledged not to fund any youth education campaigns or provide materials about youth education; not to portray anyone who appears to be under 35 years of age in promotional or advertising materials; not to use cartoons in any promotions of its products; not to advertise on billboards in Florida; not to engage in product-placement agreements with television programs or motion pictures; and not to compare the nicotine content of its products with combustible tobacco products.
In addition, the company has to use age-verification tools before allowing customers to access content on its website, according to the terms of the settlement.
In a statement emailed to the Florida Record, Juul Labs’ chief legal officer, Tyler Mace, stressed that the agreement would help to root out illegal vape products from China that have inundated the Florida market.
“Our resolution with the state of Florida will fund efforts to urgently address the flood of illegal and untested e-vapor products into the U.S. market,” Mace said. “Federal government data indicate that these illegal Chinese products continue to drive youth vaping use.”
But he added that underage use of Juul products around the nation last year was one-half of 1% of the total usage, which represents a 98% reduction since 2019. The company remains committed to keeping its vaping products away from those who are underage, according to Mace.
“We are grateful for the opportunity to continue our cooperation with Florida’s leaders to rid the market of these illegal Chinese vapes and pave the way for a marketplace of high-quality, scientifically validated American smoke-free alternatives for the nearly 2 million Florida adults who continue to smoke,” he said.
The agreement also prohibits Juul from advertising on public transportation, including taxicabs, buses, bus stations, public trains, train stations and airports. In addition, the company has agreed that its products on sale at retail establishments must be kept behind the counter to ensure security.
There are also limits on transactions involving Juul products at retail stores under the settlement. The company has agreed to limit individual transactions at stores to only one Juul vaping device and 16 Juul pods, along with limitations for online purchases as well.