Juul Labs will pay Maryland $13 million under a settlement that resolves a multistate investigation into the e-cigarette company’s marketing and sales practices, Maryland Attorney General Brian Frosh announced Tuesday.
Over the next five to nine years, Juul agreed to give $434.5 million to 33 states and territories, with the total settlement increasing to more than $476.6 million if the company takes the full nine years to pay. The tentative agreement was first announced in September.
The attorneys general said in a news release that Juul targeted youth in its advertising campaigns, using launch parties, young models and social media posts as well as flavors that were appealing to underage customers.
“JUUL’s marketing practices were aimed directly at children, setting them up for a lifetime of addiction,” Frosh said in a statement. “This settlement will prohibit JUUL from using flavors, cartoons and other marketing tactics that target kids.”
Juul also relied on age verification techniques that it knew were ineffective and its original packaging contained misleading information about the amount of nicotine in its product, the release said.
Under the settlement, Juul agreed not to provide free samples, use paid product placement or sponsorships outside adult-only spaces or advertise on public transit for six years.
A Juul spokesperson said the company is focused on helping adult smokers stop using cigarettes as it works on resolving its past issues.
“The filing of these consent orders is part of moving forward on our previously announced settlement with 33 states and territories and is a continuation of Juul Labs’ progress to resolving issues from the past,” a Juul spokesperson said in the statement. “The terms of the agreement are aligned with our current business practices which we started to implement after our company-wide reset in the fall of 2019.”