California announces multi-state settlement with Juul over marketing vaping to kids

California and five other states announced a nearly half-billion-dollar settlement Wednesday with e-cigarette giant Juul Labs to resolve accusations that the company promoted addictive nicotine vaping to teens.

California will receive a total of $175.8 million — the highest amount of any state settlement yet reached with Juul — of the $462 million total settlement amount, Attorney General Rob Bonta’s office said. The money will help the state pay for e-cigarette research, education, and enforcement efforts, and Juul will also will be barred from targeting youths in its advertising and promotions under the terms of the deal.

“Today is another step forward in our fight to protect our kids from getting hooked on vaping and nicotine,” Bonta said. “By using advertising and marketing strategies to lure young people to its products, JUUL put the health and safety of its vulnerable targets and the California public at risk. Today’s settlement holds JUUL accountable for its actions and puts a stop to its harmful business practices.”

Attorneys general in California, Colorado, Illinois, Massachusetts, New Mexico, New York and the District of Columbia negotiated the settlement.

Juul said in a statement Wednesday that the settlement “represents another critical part in our ongoing commitment to resolve issues from the company’s past.” The company admitted no wrongdoing as part of the settlement.

“The terms of the agreement, like prior settlements, provide financial resources to further combat underage use and develop cessation programs and reflect our current business practices, which were implemented as part of our company-wide reset in the fall of 2019,” the statement said.

Since then, Juul said, underage use of Juul products has declined by 95%, based on the National Youth Tobacco Survey. The company said is has now settled with 47 states and territories, providing over $1 billion to participating states, in addition to its global resolution of the U.S. private litigation that covers more than 5,000 cases brought by approximately 10,000 plaintiffs

“With this settlement, we are nearing total resolution of the company’s historical legal challenges and securing certainty for our future,” Juul’s statement said. “Now we are positioned to dedicate even greater focus on our path forward to maximize the value and impact of our product technology and scientific foundation.”

The California Attorney General’s office, Los Angeles District Attorney’s Office and the County of Los Angeles sued Juul in November 2019 for allegedly violating multiple California laws and regulations including on privacy rights of minors, unfair competition, and false advertising.

As vaping by young people surged in the late 2010s, with its highly addictive products and appealing flavors, Juul became associated with the youth e-cigarette epidemic. Researchers looking into Juul’s sales between 2017 and 2019, during the height of its popularity, found that its growth was primarily driven by users under the age of 21.

Check back for updates on this developing story.