Juul Labs will pay Arizona $14.5 million to resolve a lawsuit alleging it improperly targeted teenagers with its marketing.
This includes fruit-flavored liquid pods and ads on adolescent websites like Cartoon Network. State and local officials say it encouraged an adolescent vaping epidemic.
The settlement includes $12.5 million for addiction treatment programs and $2 million for litigation expenditures and a general consumer protection fund.
The business said the deal was “another step in our ongoing endeavor to reset our company.”
A fully regulated, science-based market for vapor goods will be advanced with federal and state stakeholders.
“As part of that process, we will continue to support Tobacco 21 and enforcement against illicit and unlawfully marketed products, such as certain disposables,” the business said.
According to the Centers for Disease Control and Prevention, approximately 3.6 million American children used e-cigarettes in 2018.
According to the FDA, “3.58 million kids currently using e-cigarettes is much too many.”
In 2018, Juul ceased selling popular flavors in stores and shut down social media networks due to regulatory pressure.
In June, it settled a similar complaint for $40 million with North Carolina.
As reported by ABC News, the FDA is still debating whether to prohibit Juul products in the US.