Delaware could receive between $7.8 million to $8.5 million under a preliminary agreement with vaping company JUUL Labs.
The $438 settlement was reached with 34 states and territories, following an investigation into its marketing and sales practices that allegedly focused on minors.
In addition to the financial terms, the settlement would lead to JUUL compiling with a series of strict injunctive terms limiting their marketing and sales practices.
“Our greatest responsibility is to our children,” said Delaware Attorney General Jennings. “Delaware and our sister states have spent decades educating kids and adults alike on the dangers of smoking. JUUL’s conduct contributed to a troubling backslide in that work. That has been illustrated by an explosion of e-cigarette use by teenagers who, for the first time in a generation, are seeing more ads for nicotine, not fewer—to say nothing of misleading claims about these products’ safety. I’m hopeful that this settlement and the business changes it requires from JUUL will help bring us back on track, and I’m grateful to the entire team that participated in this investigation and helped negotiate this settlement on behalf of the states.”
JUUL was, until recently, the dominant player in the vaping market.
Investigators determined that JUUL rose to this position by engaging in an advertising campaign that appealed to youth, even though its e-cigarettes are illegal for minors.
The states are in the process of finalizing and executing the settlement documents. The $438.5 million would be paid out over a period of six to ten years, with the amounts paid increasing the longer the company takes to make the payments.
The agreement also includes sales and distribution restrictions, including where the product may be displayed/accessed in stores, online sales limits, retail sales limits, age verification on all sales, and a retail compliance check protocol.
