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Juul will pay $462 million to six states in vaping settlement over marketing to children

Juul

Juul will pay $462 million to six states in vaping settlement

Vaping giant Juul has agreed to pay $462 million in settlement for unlawfully marketing addictive e-cigarettes to minors.

It is the vaping company’s largest multi-state settlement with six US states and Washington DC.

The firm has already reached deals with 45 states totaling more than $1 billion. 

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Its sales and marketing will be severely hampered by the deal, which requires securing products behind retail stores and verifying the age of buyers.

California, New York, Massachusetts, New Mexico, Illinois, and Colorado are among the states that agreed to settle with Juul.

New York Attorney General Letitia James said: “There is no doubt that Juul played a central role in the vaping epidemic today.”

She added that the firm will no longer be able to pay for or run youth education and prevention campaigns.

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She said the deal will also require Juul to stop using people under 35 in marketing materials that directly or indirectly target adolescents.

California Attorney General Rob Bonta said the state will get $175.8 million under the settlement, which will be utilized for e-cigarette research, education, and enforcement.

New York will receive $112.7 million over eight years, which will fund underage vaping abatement efforts across the state. 

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Massachusetts will get $41.7 million, a part of which will support vaping addiction services. 

Colorado will receive around $32 million, New Mexico will get $17 million, and DC will get almost $15 million. 

The agreement adds to years of intense scrutiny on Juul, the former Silicon Valley favorite of tobacco firms and investors. 

A series of settlements with governments and consumers over charges that it promoted addictive products to teens has crippled the firm and forced it to seek options to survive.

Source: CNBC

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