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Attorney General Paxton has reached a $438.5 million agreement appropriate between JUUL Labs and 34 states & their territories. It would resolve a 2-year dual-party investigation into the marketing and sales practices of e-cigarette manufacturers. Moreover, Attorney General Paxton launched the initial investigation in 2020.

Paxton’s office executed the investigation in coordination with the Attorney General of Connecticut and Oregon. This settlement will allow Texas to collect around $42.8 million of the $438.5 million. The recent agreement will also restrict JUUL to following a series of critically affecting terms. However, these strict terms are seriously limiting their marketing and sales operations.

Attorney General Paxton said that he launched the investigation almost 2 years ago. His key objective was to ensure JUUL was held accountable for any bad practices in the past. They must now change direction to entirely meet with the law moving forward. Paxton said the recent settlement will support accomplishing both of these objectives.

Texas is Committed to Protecting Consumers

Paxton added that his commitment is unwavering to protecting consumers from untrustworthy business practices. He said any company will be held responsible for their misleading actions against Texans, especially the young Texans. The multistate-led investigation concluded that JUUL has become a prominent entity in the vaping industry.

Moreover, JUUL reportedly engaged in an advertising campaign. The campaign found it attractive to youth but its e-cigarettes are both insecure for youth to use and illegal to purchase. This investigation discovered that JUUL is constantly marketed to underage youngsters. The company conducted parties, free samples, social media posts, and advertisements using young models.

The Packaging of JUUL was Misleading

Meanwhile, JUUL sold its products in different attractive flavors to underage users with a technology-oriented glossy design. The company also exploited the chemical composition of its products to offer a less harmful vapor. They implemented this approach to protect the throat of young and inexperienced users. JUUL depended on age verification methods that are currently ineffective to secure underage customers.

The investigation also explained that the early packaging of JUUL was misguiding. The company didn’t clearly mention that its products contain nicotine. The company’s products reportedly contain a lower concentration of nicotine. Users were similarly guided into supposing that using one JUUL e-liquid pod was equivalent to smoking one pack of cigarettes.

JUUL’s Product Was a Smoking Termination Device

The investigation also found that its product was considered a smoking termination device without FDA approval to make a claim. Moreover, the states are currently preparing to finalize and execute the settlement documents. It will take around 6 to 10 years to pay out the settled $438.5 million amount. Remember that the amount will increase if the company extends the time period.

Meanwhile, the final settlement amount could reach $476.6 million if JUUL decides to increase the period to 10 years. This agreement also contains robust restrictions for marketing, sales, and distribution. These instructions include marketing to persons under age 35 and limitations on online sales, in-store displays, and retail sales. It also includes age verification requirements on entire sales and retail.

The following is a list of states and territories that joined Texas in the settlement.

1. Alabama
2. Arkansas
3. Connecticut
4. Delaware
5. Georgia
6. Hawaii
7. Idaho
8. Indiana
9. Kansas
10. Kentucky
11. Maryland
12. Maine
13. Mississippi
14. Montana
15. North Dakota
16. Nebraska
17. New Hampshire
18. New Jersey
19. Nevada
20. Ohio
21. Oklahoma
22. Oregon
23. Puerto Rico