E-cigarette giant “Juul Labs” agreed to pay $462 as part of a claim settlement.
The manufacturer of e-cigarettes, “Juul Labs,” has agreed to pay an amount of $462 million against a claim settlement after being accused by six US states of targeting children and teenagers.
Many states also register complaints about the false marketing strategies used by the company to attract consumers. The company claims its vapes or cigarettes are less addicting and do not cause any health issues.
The company claims that its recent deal was only a part of its “commitment to resolve issues from the company’s past” and did not admit its fault.
Juul, which is at the top of the “e-cigarette” industry in the US, has been sued for promoting vaping among teenagers. The company never accepted that they were targeting the younger generation, but critics pointed out the fancy and colourful packaging, the variety of flavours, and the use of young models for the promotion.
According to data provided by the “Centres for Disease Control and Prevention,” around 2.5 million students in the US used “e-cigarettes,”
Some people also claim that vapes are helpful to stop smoking because they remove the intake of harmful and toxic tobacco smoke, which gives a “huge health boost.”
However, the vapour from an e-cigarette that is breathed still can include trace levels of substances, such as nicotine, which could pose their own hazards. Because they perceive vaping as absolutely risk-free, there are worries that young people are starting to use it.
Since changing its marketing strategies as part of a “company-wide restart” in the fall of 2019, Juul reported that the use of its goods by consumers under the age of 18 has dropped by 95%.
Juul will distribute the $462 million over eight years.
The settlement reached on Wednesday resolved complaints brought against the company in New York, California, Colorado, Illinois, Massachusetts, New Mexico, and the District of Columbia.
The company settled an investigation into its advertising to underage purchasers in September last year by paying $438.5 million.
Juul’s marketing was constrained by the agreement with more than 30 states, which forbade the use of individuals under the age of 35 in its advertisements, for instance. Juul is still being sued in other states.