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ATLANTA — Georgia and 31 different states have reached a $438.5 million settlement with JUUL Labs in a lawsuit over the e-cigarette producer’s advertising and marketing and gross sales practices.
The settlement – together with Georgia’s share of greater than $19 million – will probably be paid out over a interval of six to 10 years, with the quantities paid rising the longer the corporate takes to finish the funds.
If JUUL elects to increase the cost interval the complete 10 years, the settlement quantity will enhance to $476.6 million.
The settlement introduced Tuesday ends a two-year bipartisan investigation into an organization that till just lately was the dominant participant within the vaping market.
The investigation revealed JUUL aggressively marketed to underage customers with launch events, advertisements utilizing younger fashions, social media posts and free samples.
The corporate additionally manipulated the chemical composition of its product to make the vapor much less harsh on the throats of younger and inexperienced customers.
JUUL additionally didn’t clearly disclose in its packaging that its e-cigarettes contained nicotine and misrepresented its product as a smoking cessation gadget.
Georgia Lawyer Common Chris Carr stated, “Underage vaping has reached epidemic proportions.”
“Our workplace is dedicated to defending Georgia’s youth from merchandise that might be dangerous to their well being. That features holding accountable those who unlawfully attempt to promote harmful and addictive e-cigarettes to minors in our state,” Carr stated.
Along with the cost, the settlement requires the corporate to adjust to a collection of strict limits on its future advertising and marketing and gross sales practices, together with refraining from youth advertising and marketing, making deceptive representations in regards to the nicotine content material of its e-cigarettes, and funding education schemes.
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