E-Cigarette Company Juul Agrees To Pay $40 Million To Settle Lawsuit

E-cigarette company Juul Labs agreed to pay $40 million to settle a lawsuit filed by North Carolina. The company was accused of marketing its products to young people and misleading the public about the potential dangers of vaping.

In addition to paying $40 million the company also agreed to change its marketing practices.

"Juul must abandon all marketing strategies and content that appeals to young people. Juul will be prohibited from influencer advertising, outdoor advertising near schools, sponsoring sporting events and concerts, and most importantly, most social media advertising," North Carolina Attorney General Josh Stein said. "Juul cannot use anyone under the age of 35 years in their advertising. Juul cannot make any claims that its e-cigarettes are safer or better for your health than combustible cigarettes."

Going forward Juul products will only be sold behind the counter in North Carolina stores, and the company will be required to use third-party age verification for all online sales. Juul will also send undercover teenage shoppers to 1,000 stores every year to ensure their products are not being sold to minors.

Juul is still facing 13 similar lawsuits from other states including California, Massachusetts, and New York. It is unclear how this settlement will impact the ongoing ligation.

“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 opportunity for harm reduction for adult smokers," Juul spokesman Joshua Raffel said.