Juul agrees to pay Iowa $5 million in lawsuit damages
On Wednesday, Iowa Attorney General Tom Miller announced that JUUL Labs Inc. will update its advertising and retail practices and pay $5 million over four years to resolve possible violations of Iowa's Deceptive Trade Practices Act. "the behavior of.
“The agreement strikes a balance of authentic advertising and promotion of JUUL devices and pods,” Miller said. "E-cigarettes should be promoted to smokers, not young people, as a less harmful alternative."
"Additionally, this agreement will provide resources and education to young Iowans who are targeted and users of the company's products.""
Miller alleges that JUUL violated Iowa's Deceptive Trade Practices Act by exposing people under the age of 21 in Iowa to its electronic nicotine delivery system (ENDS).
Under the agreement, JUUL will award $1.25 million annually to the Iowa Department of Health and Human Services over the next four years to:
Smoking Cessation Help for Iowa
Funding Educational or Prevention Programs
Establish research to support prevention of ENDS use
Facilitating the Adoption of Age Verification Technology
Execute programs in support of Iowa and federal laws.
Juul also agreed to update its advertising and promotional practices, including:
No advertising, promotion, or marketing of JUUL products to youth in Iowa is permitted.
Does not directly fund or conduct any youth education campaigns or prevention activities, or provide youth education programs or activities in Iowa.
Do not describe or portray any individual under the age of 35 in any promotion, marketing, or advertising of JUUL products.
Cartoons may not be used in any of their promotions, advertisements or product marketing.
No payment for JUUL products or brand placement in movies, television shows, theater productions or live performances in Iowa.
Apparel or merchandise bearing the JUUL name may not be sold, advertised, marketed, distributed or licensed.
No JUUL product may be sold or advertised in any flavor until it has been authorized by the FDA.
Require age verification by individuals upon first access to any website they own or operate.
Not to compare the nicotine levels in their products with the nicotine levels in combustible tobacco products in promotional materials. In addition, it must disclose the amount per milligram of nicotine in its products.
With respect to the retail sale of its products, JUUL agrees to:
Do not display JUUL products anywhere in a retail location other than behind a counter or allow customers to access the product without the assistance of retail establishment employees.
Limit online transactions to no more than two JUUL devices per month, 10 JUUL devices per year, and 60 JUUL pods per month.
Take reasonable steps to limit retail transactions in Iowa to one JUUL device and/or 16 JUUL pods per transaction.
No sales to consumers under the age of 21.
Continue to recommend that credit card companies print "JUUL TOBACCO Product" on consumers' credit card statements.
No free JUUL products are provided to Iowa consumers.
Ultimately, JUUL agreed to appoint a compliance officer to ensure compliance with its agreement with the Iowa Attorney General's Office and to address compliance-related issues.
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