June 28, 2021
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1:54
1:23Now PlayingJuul Labs Inc. has struck a $40 million settlement with North Carolina over a lawsuit claiming it aimed its e-cigarette products at young people, in what the state called the first such agreement to hold Juul accountable for its marketing.
North Carolina Attorney General Josh Stein and the company told a state judge of the settlement at a hearing on Monday. At a news conference afterward, Stein said Juul had agreed to “fundamentally change” its business practices, restricting “what products it sells, how and where it sells them, and who is able to buy them,” and abandoning “all marketing strategies and content that appeal to young people.”
The consent order, enforceable in North Carolina court, prohibits advertisements near schools and most social media advertising and bars Juul from making claims that compare the impact on health of using its products with that of combustible cigarettes, among other stipulations, according to the attorney general’s office. The $40 million will go to programs for teens struggling with e-cigarette addiction and to prevent other young people from starting the habit, Stein said.
“Today, because of Juul, thousands of kids in North Carolina are addicted to nicotine, putting their long-term health at risk,” Stein said.
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