Attorney General Kathy Jennings announces a multistate agreement in principle between JUUL and 34 states and territories.
The $438.5 million agreement resolves a two-year bipartisan investigation into the e-cigarette manufacturer’s marketing and sales practices.
In the agreement Delaware will recover between $7.8 million and $8.5 million.
According to the investigation, JUUL became the dominant player in the vaping market by engaging in an advertising campaign that appealed to youth, even though they are illegal and unhealthy for that age group.
The investigation also revealed JUUL marketed to underage users with launch parties, social media posts, free samples, and using ads with young and trendy-looking models.
It was also found that JUUL’s original packaging was misleading, not clearly disclosing it contained nicotine, and implying it contained a lower concentration of nicotine than it actually did.
“Our greatest responsibility is to our children,” said Jennings. “Delaware and our sister states have spent decades educating kids and adults alike on the dangers of smoking. JUUL’s conduct contributed to a troubling backslide in that work. That has been illustrated by an explosion of e-cigarette use by teenagers who, for the first time in a generation, are seeing more ads for nicotine, not fewer—to say nothing of misleading claims about these products’ safety. I’m hopeful that this settlement and the business changes it requires from JUUL will help bring us back on track, and I’m grateful to the entire team that participated in this investigation and helped negotiate this settlement on behalf of the states.”
The states are still finalizing the settlement and the money will be paid out over six to ten years. The amounts will increase the longer the company takes to make payments.
If JUUL chooses to extend the payment to ten years, the total would increase to $476.6 million.
As part of the agreement, JUUL must refrain from youth marketing, funding education programs, depicting persons under 35 in marketing, using cartoons, offering free samples and other marketing and sales practices.
