Juul settles its legal troubles in the United States by agreeing to pay a fine of 438.5 million dollars (442.5 million euros). The agreement announced on Tuesday September 6 puts an (almost) end to the two-year investigation carried out “by dozens of attorneys general” who accused the manufacturer of electronic cigarettes of having practiced a “advertising ‘cynical’ for its vaping products to minors”, report it FinancialTimes.
This regulation “concluded with 33 states and Puerto Rico will end one of the biggest legal threats to Juul” – not all states have ratified the agreement and individual lawsuits are pending. The terms of the deal, an analyst in the business daily said, are “more favorable than expected” for the start-up, which has lost a lot of its luster.
Manipulation and deception
The investigation established that Juul “had managed to dominate the electronic cigarette market ‘deliberately engaging in an advertising campaign that appealed to young people’”. According to the Connecticut attorney general responsible for the deal, the company “relentlessly marketed its vaping products to young minors, manipulated their chemical composition to be palatable to inexperienced users, employed an insufficient age verification process, and misled consumers about nicotine content and addiction to its products”.
Since the prosecution began, Juul has “ended most of its advertisements”, ceased the sale of flavored refills and raised the minimum age for the purchase of its vapers to 21 years, specifies the economic daily.
His troubles are not over, however. In June, the Food and Drug Administration (FDA), the American Medicines Agency, banned the marketing of its products, an injunction against which the company appealed and “which could force it to withdraw its brands from the United States, where it makes more than 90% of its sales”, recalls the British newspaper.