Speed Reads

let's settle this

Juul Labs reaches $438.5 million settlement in youth marketing probe

Juul Labs has reached a tentative agreement to pay $438.5 million to a number of states investigating the company's sales and marketing practices, including its efforts to appeal to children and its contribution to the teenage vaping crisis, multiple outlets reported Tuesday.

The probe, led by more than 30 states and territories, "found that the company appealed to young people by hiring young models, using social media to court teenagers, and giving out free samples," writes The New York Times.

"We think that this will go a long way in stemming the flow of youth vaping," said Connecticut Attorney General William Tong, who led negotiations for multiple parties in the probe, per The Washington Post. "We are under no illusions and cannot claim that it will stop youth vaping. ... But we have essentially taken a big chunk out of what was once a market leader."

Per the deal, Juul will now "refrain from all youth marketing, paid product placement, advertising on public transportation, funding education programs, [and] depicting anyone under 35 years old in advertisements or using cartoons in ads, among other marketing activities," Bloomberg summarizes, per a statement from Tong. The company also agreed not to advertise on billboards or use paid influencer promotions in its marketing.

Juul, meanwhile, called the settlement "a significant part of our ongoing commitment to resolve issues from the past" — though it said it was not admitting to any wrongdoing, per the Times.