July’s products were ordered off the market in the United States for a while in the summer. Not all charges brought against the company have been finalized yet.
American e-cigarette company Juul pays 438.5 million dollars, or about 440 million euros, in a mediation case related to its marketing.
Dozens of US states have accused the company of marketing to minors and abuses in sales practices. The case, which dragged on for two years, has now been settled with 34 states. Juul will pay the money to the states over the next 6 to 10 years.
The states claim that Juul downplayed the risks of its products and targeted its marketing to minors. According to the charges, Juuli’s marketing aimed at young people has caused a widespread wave of nicotine addiction and a national health problem.
In connection with the settlement, Juul has committed to making changes to its marketing. Juul gives up cartoons in its advertising, stops product placement and promises to only show people at least 35 years old in its ads.
Juul says in its press release that the mediation is “an important part of our ongoing commitment to resolve the problems of the past”. The company says that in 2019 it started a complete reform of the company’s operating methods, which are now in line with the changes promised in the mediation.
The news agencies AFP and Reuters report on the matter, among others.
Part States in the United States, such as New York and Massachusetts, continue with their prosecutions. In addition, Juuli is facing thousands of charges brought by citizens and local governments.
Tobacco company Altria Group owns 35 percent of Juulis. Altria said in July that the value of its stake had sunk to $450 million. In March 2018, Altria paid $12.8 billion for Juul. It has been feared that Juul will fall completely into his problems.
The United States Food and Drug Administration (FDA) banned the sale of Juuli’s e-cigarette products for a while in the summer. Juul filed a complaint and continues to sell its products in the country.
A year ago in the summer of July the extensive set of charges reached the first significant milestonewhen the company agreed to pay the state of North Carolina $40 million to avoid a lawsuit.
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