ECONOMY
Thu 13 Apr 2023 8:34 pm - Jerusalem Time
Electronic cigarette manufacturer Juul agrees to pay $462 million to six US states and Washington, D.C
The American company, " Jul ", the manufacturer of electronic cigarettes, agreed on Wednesday to pay 462 million dollars to six US states in addition to Washington, D.C., for targeting young age groups, thus continuing to settle a group of lawsuits filed against it.
Restrictions were also imposed on the company related to marketing its products, such as mandatory placing them behind payment boxes in stores, according to a statement by the New York Attorney General who signed the settlement along with his counterparts in the states of California, Colorado, Illinois, Massachusetts, New Mexico, and Washington DC.
In the statement, Attorney General Letitia Demes noted that Juul had sparked a nationwide health crisis by making addictive products available to minors and convincing them that they were harmless.
The lawsuit, filed by the plaintiff, accuses Juul of "glorifying" electronic cigarettes in advertisements promoting cigarettes with different flavors such as fruit, candy and mint, which attracts small groups, in addition to misleading consumers regarding the nicotine content in its products and the harm caused by electronic cigarettes.
Many other lawsuits have been brought against the company on similar grounds.
In September 2022, Joule agreed to pay $438.5 million to 34 US states and territories, while in December it announced agreements to settle five thousand lawsuits filed against it by ten thousand people.
The company announced Wednesday that it has so far settled claims in 47 US states and territories.
The company's value has declined in recent years, due to these lawsuits and the uncertainties surrounding the company's status. In June, the US health authorities issued a decision banning the company from selling e-cigarettes, before an appeals court in Washington partially lifted this decision.
At the end of 2022, the company launched a restructuring plan.
Under the settlement that took place on Wednesday, Joule is prohibited from using people under 35 years of age in its ads, in addition to limiting the number of products per purchase, and preventing it from displaying its products in virtual reality games.
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Electronic cigarette manufacturer Juul agrees to pay $462 million to six US states and Washington, D.C