United States: US E-cigarette manufacturer Juul Labs announced that it had reached a settlement with about 10,000 plaintiffs in California after being accused of targeting teens with its advertising.
According to the company, the cases were from personal injury, consumer class action, Government entities and Native American tribes groups.
“The agreements represent a major step toward strengthening Juul Labs’ operations and securing the company’s path forward,” the vaping giant stated.
Juul is struggling to survive after the US Food and Drug Administration ordered that all of its products should be taken off the market in the US because the business had not addressed safety concerns. Although the company has challenged the decision, it revealed last month that it has been forced to slash its operational budget by up to 40 Percent and lay off 400 people. However, Juul announced that the company had obtained funding for its operations from early investors.
Juul cited in September 2022 that it will pay $438.5 million to 34 states and territories as part of a settlement following a two-year investigation into the company’s marketing and sales practices.
Investigation revealed that Juul purposefully targeted young consumers with its advertising, despite the fact that selling E-cigarettes to minors is prohibited. E-cigarette products have grown in popularity among young people, leading to a vaping epidemic in high schools nationwide, as per the reports.
A recent survey mentioned that more than 2 million US teens declared they use E-cigarettes, with a quarter of them saying they vape on a daily basis. The survey also found that they still reported using E-cigarettes and other vape devices.