The Attorney General of Minnesota announced that an additional $2.5 million has been obtained from vape company JUUL as part of a related settlement agreement. Combined with the $58 million obtained following the 2023 trial, the total settlement amount between the state and JUUL and its former parent company, Altria, reaches $60.5 million (to be paid over eight years), with funds allocated for preventing youth smoking and vape use. The agreement also imposes several strict restrictions on JUUL’s marketing activities.
Key Points:
- Funding Details: Minnesota has received a total of $60.5 million from JUUL, including the additional $2.5 million, to be paid over eight years.
- Restrictions: JUUL is prohibited from marketing to minors, selling flavored products, engaging in certain outdoor advertising and event sponsorships, and must comply with regulations regarding sales and nicotine content disclosure.
- Litigation Background: The lawsuit was filed in December 2019, alleging that JUUL used deceptive tactics targeting minors. The settlement funds are specifically designated for youth smoking prevention efforts.
JUUL pays $2.5 million to the state of Minnesota
According to a report by Kimt on August 18, Minnesota Attorney General Keith Ellison announced that the state had secured an additional $2.5 million from vape company JUUL.
This amount is part of a settlement agreement reached after the U.S. Food and Drug Administration (FDA) approved certain JUUL products. Following the conclusion of court proceedings in March-April 2023, the state had already received $58 million from JUUL and its former parent company, Altria Group.
The total settlement amount reached US$60.5 million
Attorney General Ellison stated, “Minnesota had made significant progress in the fight against nicotine use among teenagers until JUUL and Altria deceived and addicted a new generation of children to nicotine. These companies caused real harm to Minnesota’s children, so I sued them and won the settlement. This funding will help compensate for the harm caused by JUUL and Altria. I hope this additional payment serves as a reminder that I will not tolerate the marketing of nicotine products to teenagers in Minnesota.”
Under the settlement agreement. JUUL must comply with strict marketing restrictions, including:
Prohibiting marketing and sales to children and young people, including using models under 35 years of age, advertising on clothing, entertainment, and social media platforms, and selling flavored products
Restrictions on JUUL’s ability to sponsor events and use outdoor advertising in Minnesota
Prohibition on JUUL distributing product samples
Requirement for JUUL to accurately disclose the nicotine content of its products
Regulations on how JUUL products are sold in stores and restrictions on online sales
Development of a retailer compliance program for Minnesota stores to ensure proper age verification for the sale of JUUL products.
The lawsuit, which began in December 2019, accused JUUL of using deceptive tactics targeting teenagers. The settlement between Minnesota and JUUL, and Altria Group totals $60.5 million over eight years, with funds specifically allocated for preventing teenage smoking and vape use.
