California to receive $176 million in settlement with Juul over advertising targeting young people
SACRAMENTO – California will receive nearly $176 million in a settlement with electronic cigarette company JUUL Labs, Inc., over advertising targeted at young people, state Attorney General Rob Bonta said this week.
California and five other states as well as the District of Columbia settled with JUUL for a total of $462 million, resolving multiple lawsuits over the company's advertising of its nicotine-containing vape and e-cigarette products.
California will receive $175.8 million from the settlement, the most of the five other states, which will be invested into education programs about the harms of vaping, implementation of the state's ban on flavored nicotine products and research into e-cigarette health effects on young people, according to Bonta's office.
Colorado, Illinois, Massachusetts, New Mexico and New York were also included in the settlement.
"By using advertising and marketing strategies to lure young people to its products, JUUL put the health and safety of its vulnerable targets and the California public at risk," Bonta said in a statement. "Today's settlement holds JUUL accountable for its actions and puts a stop to its harmful business practices."
The California Department of Justice, Los Angeles District Attorney's Office and Los Angeles County filed a joint lawsuit in 2019 against JUUL for alleged violations of several state laws on privacy rights of minors, false advertising and unfair competition, according to Bonta's office.
In a statement released Wednesday, JUUL argued the settlement is part of the company's efforts to "resolve issues from the company's past."
JUUL has now settled with 47 states and territories for a combined amount of more than $1 billion. The company also cited data from the National Youth Tobacco Survey that underage use of JUUL products has also dropped by 95 percent since the fall of 2019.
"Now we are positioned to dedicate even greater focus on our path forward to maximize the value and impact of our product technology and scientific foundation," the company said.