INDIANA (WEHT) – Attorney General Todd Rokita announced Tuesday that JUUL Labs Inc. will pay Indiana more than $15.7 million to settle allegations that JUUL Labs deliberately marketed its products to minors.
Attorney General Todd Rokita said, “Wrongful actions that jeopardize children are especially repugnant and shameful. Fortunately, the money we have recovered in this settlement can go toward safeguarding the same young people targeted by the unethical marketing strategies employed by JUUL.”
A press release says Indiana’s funds are intended to be used in support of prevention, education, harm reduction and mitigation efforts related to youth using e-cigs and vapes.
Officials say JUUL has an option to pay over six to ten years, with the total payout increasing the longer it takes to pay. If JUUL chooses a ten year option, Indiana’s amount would exceed $17.1 million. JUUL’s first payment to Indiana will be $1,478,665 — due Dec. 31, 2022. All additional payments are due on December 31 each year.
The press release says in 2019, Indiana joined a multistate investigation into JUUL’s activities. Officials say that investigation revealed, among other things, that:
- JUUL directed its marketing at youth by using a hashtag marketing strategy and “influencers” with a large youth following on social media platforms such as Instagram, Facebook, and Twitter.
- JUUL conducted ad campaigns using high-profile promotions, sampling opportunities and youthful models in trendy clothes and provocative poses.
- JUUL’s physical design of its products, along with its flavor options and less-harsh nicotine salt composition, appealed to youth and addicted a new generation to nicotine.
- JUUL made misleading representations to consumers in the marketing, promotion, and sale of its products, leading consumers to believe that its products did not include nicotine at all or, alternatively, contained a lower concentration of nicotine than they do.
- JUUL failed to adequately verify the age of its buyers and allowed minors to purchase its products.
Officials say Indiana alleged that JUUL’s misrepresentations and actions were unfair, abusive, deceptive and in violation of Indiana’s Deceptive Consumer Sales Act (DCSA).
The press release says under the agreement, JUUL agrees to:
- refrain from including depictions of persons under the age of 35 in any marketing.
- do no social media advertising except for using testimonials of persons over age 35.
- disclose in all advertising the amount of nicotine in their products.
- no longer provide free samples, sponsorships, product placements, or merchandise sales with their brand name.
- sell no flavored products unless approved by the FDA.
- follow restrictions on product placement in retail stores.
- observe quantity purchase limits on in-store and online purchases.
- participate in specific compliance checks and monitoring for retail stores.
The consent judgment in this case that has been filed and presented to a judge for review is below.