A federal appeals court in Washington, DC, issued a temporary hold on the FDA’s decision to ban the sale of Juul’s e-cigarette products, a decision made because the giant company failed to address the “toxic image of its products.”
The court emphasized that its Friday decision did not reflect the merits of the case, but was necessary to allow more time for it to study the case.
The FDA’s decision provided an opportunity for Juul’s competitors to increase its sales in the market that the company controlled.
On the other hand, the decision was a blow to the giant tobacco company “Altria”, which manufactures “Marlboro” cigarettes, due to its acquisition in 2018 of 35% of “Juul” to diversify its business strategy in the face of low smoking rates.
The Wall Street Journal reported that Juul is considering, along with its legal advisors, the possibility of seeking legal protection for companies declaring bankruptcy if the court upholds the FDA’s decision.
The US administration declined to comment after being contacted by AFP on Friday.
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