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Juul Labs, the American electronic cigarette company, has settled and agreed to pay almost $439 million to end the probe on its sales and marketing practices concerning the youths. The settlement will conclude the investigation that has been running for two years already.
As per Fox Business, the agreement was announced on Tuesday, Sept. 6, by Ken Paxton, the Texas Attorney General who led the probe against Juul. He was also assisted by attorney generals from Oregon and Connecticut in the fight to stop the company from influencing youngsters.
The vape maker's spokesperson said that it views the settlement in a good light and described the decision to settle as part of its efforts to "resolve issues from the past." It was reported that Juul was able to reach an agreement with 34 states in the U.S., including territories. This effectively put an end to the investigation into its advertising practices which was initially launched by officials two years ago.
In the agreement, it was stated that Juul would pay $438.5 million in the course of six to 10 years. It was also indicated in the contract that the amount would increase if the payments are spread toward the higher end of that range.
Thus, if the payment is made in over ten years, then the settlement amount will go up to $476.6 million. It was noted that out of the $438.5 million payout, Texas would be collecting a total of $42.6 million.
"When I launched this investigation over two years ago, my goal was to make sure JUUL was held liable for any wrongdoing done in the past and ensure that they change direction to fully comply with the law going forward," Texas Attorney General Paxton said in a statement.
He added, "This settlement helps accomplish both of those priorities. My commitment to protecting consumers from deceptive business practices is unwavering, and any company that misleads Texans, especially our youth, will be held accountable for their actions."
BBC News reported that aside from the settlement money, Juul was also instructed to revise its marketing and should bar underage individuals from buying its products. In response to the announcement, Juul Labs spokesperson said, "With today's announcement, we have settled with 37 states and Puerto Rico, and appreciate efforts by Attorneys General to deploy resources to combat underage use."
