Juul Labs Settles Marketing Suit in Iowa for $5 Million
Credit: Zorbor
Iowa Attorney General Tom Miller in the U.S. announced that Juul Labs Inc. will update its advertising and retail practices, and pay $5 million over a four-year period in order to resolve potential violations of Iowa law.
Miller alleged that the e-cigarette manufacturer exposed Iowans under the age of 21 to its nicotine delivery system which would be a violation of Iowa’s Deceptive Trade Practices Act.
“This agreement strikes a balance in truthful advertising and promotions of Juul devices and pods,” Miller said. “E-cigarettes should be promoted to smokers as a less harmful alternative, but not to youth,” according to KCRG.
As part of the agreement, Juul Labs will send $1.25 million each year to the Iowa Department of Health and Human Services. The funding will then be used to:
- provide Iowans with assistance in quitting e-cigarette use
- fund education or prevention programs
- establish research in support of preventing ENDS use
- facilitate the adoption of age-verification technologies
- enforce related programs in support of Iowa and federal laws.
Earlier this year, Juul Labs settled more than 5,000 lawsuits for the sum of between $1.2 billion and $1.7 billion.