HONOLULU (KHON2) — In a $438.5 million agreement, the Department of the Attorney General stated that the electronic cigarette maker Juul will comply with a series of terms that limits their marketing and sales practices.
The settlement between Juul Labs and 34 states and territories came after a two-year bipartisan investigation.
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The department said Hawaii’s share of the settlement would include $6.8 million.
According to investigations, even though e-cigarettes are illegal for purchase by the youth, advertising campaigns by Juul supposedly appealed to underage users.
Advertisements by Juul allegedly used young and trendy-looking models, social media posts and free samples. The product was also sold in flavors that the department said are known to be attractive to underage users.
As part of the settlement, Juul has agreed to refrain from:
- Youth marketing
- Funding education programs
- Depicting persons under age 35 in any marketing
- Use of cartoons
- Paid product placement
- Sale of brand name merchandise
- Sale of flavors not approved by Food and Drug Administration
- Allowing access to websites without age verification on landing page
- Representations about nicotine not approved by FDA
- Misleading representations about nicotine content
- Sponsorships/naming rights
- Advertising in outlets unless 85 percent audience is adult
- Advertising on billboards
- Public transportation advertising
- Social media advertising (other than testimonials by individuals over the age of 35, with no health claims)
- Use of paid influencers
- Direct-to-consumer ads unless age-verified, and
- Free samples
The Department of the Attorney General also stated that Hawaii’s share could increase to more than $7 million if the company opts to extend payments over a period longer than five years.