Arizona Attorney General Mark Brnovich announced that the state has reached a $14.5 million settlement with Juul Labs in a case the Grand Canyon State brought against the e-cigarette maker for allegedly marketing its products to youth.
Brnovich said in his announcement that the settlement, which is pending court approval, also requires Juul Labs Inc. to change its corporate practices and ensure that its products aren’t marketed or sold to youth in Arizona. The stipulated consent judgment notes that Juul denies the state’s claims and that the parties settled without any admission of wrongdoing or liability.
Brnovich’s January 2020 suit, filed in Maricopa County Superior Court, claimed Juul “has exploited a generation of youth by implementing tactics and marketing themes once used by the tobacco industry and updating these strategies to craft a marketing plan that appealed to, targeted, misled, and exploited Arizona’s youth.” The company also misled all consumers about the actual concentration of nicotine in its products,
Per the settlement, Juul will send representatives to conduct at least 25 compliance checks at Arizona stores that sell Juul products every month for two years. The company will try to conduct the compliance checks at different stores each month and to conduct at least three checks in each county per year.
Among other things, the company has also agreed to not advertise near schools or target Arizonans under 21 with its marketing, use cartoons in any of its marketing, sell its products to Arizonans under 21, or display its products at stores if they aren’t behind the counter or in a secured display case.
Juul will allow Arizona residents to report the serial number of any device confiscated from an Arizona resident under 21 through a “track-and-trace” program on the company’s website.
The company also won’t sell its pods in any flavors in Arizona other than tobacco or menthol, unless it receives authorization from the U.S. Food and Drug Administration.