Arizona Attorney General Reaches $14.5M Settlement with JUUL

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Arizona Attorney General Mark Brnovich announced a settlement with e-cigarette maker Juul Labs Inc. requiring the company to pay $14.5 million and make changes to its corporate practices to ensure JUUL products are not marketed or sold to youth in Arizona.

The Arizona Attorney General’s Office filed a lawsuit against JUUL in January 2020 for engaging in deceptive and unfair acts and practices. The AGO alleged JUUL marketed its nicotine products to appeal to young people while misleading them on the risks associated with those products.

The AGO also alleged the company failed to implement protective measures to ensure its products were not sold to underage consumers. Finally, the AGO alleged that JUUL misled all consumers regarding its products’ true nicotine concentration.

As part of the consent judgment, pending court approval, JUUL has committed to change its business practices to ensure that its products will not be marketed or sold to Arizona’s youth, including:

  • No marketing that appeals to or targets individuals under the age of 21, including the use of cartoons in advertising, and no advertising near schools.
  • No publishing, marketing, or advertising material for JUUL products on any social media platform, no engaging or paying social media influencers, and no use of persons under age 30 in its advertising.
  • No JUUL-sponsored events where persons under 21 will be present.
  • No selling to Arizonans under 21 years of age.
  • No selling flavored products without FDA approval.
  • Ensuring retail stores in Arizona that carry and sell JUUL products adopt age-verification compliance systems.

JUUL also will pay $14.5 million to the State. $12.5 million will be used for programs to stop youth vaping. The remaining $2 million will be paid to the state for litigation reimbursement and deposited into the Consumer Protection–Consumer Fraud Revolving Fund.

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Arizona

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