Juul to pay $40M in N. Carolina teen vaping suit settlement

Juul to pay $40M in N. Carolina teen vaping suit settlement

SeattlePI.com

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DURHAM N.C. (AP) — Electronic cigarette giant Juul Labs Inc. will pay $40 million to North Carolina and take more action to prevent underage use and sales, according to a landmark legal settlement announced on Monday after years of accusations that the company had fueled an explosion in teen vaping.

A state judge accepted the first-of-its-kind agreement with a state. North Carolina Attorney General Josh Stein had sued Juul, accusing it of employing unfair and deceptive marketing practices that targeted young people to use its vaping products, which deliver addictive nicotine.

As part of the agreement, Juul will not advertise to anyone under 21 in North Carolina and will limit sales amounts of Juul products online to any state residents. It will also sell its products only behind counters at retailers that have ID scanners to ensure customers are of age.

Teen use of e-cigarettes skyrocketed more than 70% after Juul’s launch in 2015, leading the U.S. Food and Drug Administration to declare an "epidemic" of underage vaping among teenagers. Health experts said the unprecedented increase risked hooking a generation of young people on nicotine, an addictive chemical that is harmful to the developing brain.

“This win will go a long way in keeping Juul products out of kids’ hands, keeping its chemical vapor out of their lungs, and keeping its nicotine from poisoning and addicting their brains," Stein said in a news release.

Juul, which is partially owned by Altria Group Inc., has seen sales fall after halting all advertising and social media promotion and pulling most of its flavors except for menthol.

“This settlement is consistent with our ongoing effort to reset our company and its relationship with our stakeholders, as we continue to combat underage usage and advance the...

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