Nebraska to Receive $8 Million from JUUL Settlement

On Tuesday, December 6, 2022, Attorney General Peterson announced a $438.5 million settlement between JUUL Labs and 33 states and territories, resolving a two-year bipartisan investigation into the e-cigarette manufacturer’s marketing and sales practices. In addition to the financial terms, the settlement will force JUUL to comply with a series of strict injunctive terms, severely limiting their marketing and sales practices.Nebraska will receive a total of between $8.1 million to $8.8 million in annual installments between 2022 and 2027, 2029, or 2031.“This settlement aids in the first steps to addressing the vaping problem facing teens. JUUL is being required to provide settlement money towards programs that help curb addiction. It also sends a strong message to companies in any industry: Don’t mess with our children,” stated Attorney General Peterson.JUUL had been accused of targeting youth with its marketing. In 2019, the Fairbury Public School Board voted to add nicotine to the school's drug testing protocols and policy for participants in extracurricular activities, such as sports, in the hopes of dissuading students from vaping. Stephen Grizzle, FPS Superintendent, and other school faculty and board members expressed concerns at that time that students didn't understand the risks of vaping.The board voted to remove nicotine from drug testing earlier this year.JUUL is one brand of e-cigarette. A JUUL device, looks like a flash drive, or USB drive, the exact sort of thing students now carry around with schoolwork stored on them. In fact, a JUUL is rechargeable and comes with a USB charger that you can plug into your laptop or charging station. A single JUUL cartridge, or pod – the part of the JUUL that contains the nicotine liquid, has about the same amount of nicotine as a pack of cigarettes: roughly about 200 puffs.JUUL was, until recently, the dominant player in the vaping market. According to the Attorney General, “The multi-state investigation revealed that JUUL rose to this position by willfully engaging in an advertising campaign that appealed to youth, even though its e-cigarettes are both illegal for them to purchase and are unhealthy for youth to use. The investigation found that JUUL relentlessly marketed to underage users with launch parties, advertisements using young and trendy-looking models, social media posts, and free samples. It marketed a technology-focused, sleek design that could be easily concealed and sold its product in flavors known to be attractive to underage users. JUUL also manipulated the chemical composition of its product to make the vapor less harsh on the throats of young and inexperienced users. To preserve its young customer base, JUUL relied on age verification techniques that it knew were ineffective.”The investigation indicated that JUUL’s original packaging was misleading in that it did not clearly disclose that it contained nicotine and implied that it contained a lower concentration of nicotine than it actually did. The Attorney General also noted, “Consumers were also misled to believe that consuming one JUUL pod was the equivalent of smoking one pack of combustible cigarettes. The company also misrepresented that its product was a smoking cessation device without FDA approval to make such claims.”As part of the settlement, JUUL has agreed to refrain from:• Youth marketingFunding education programsDepicting persons under age 35 in any marketingUse of cartoonsPaid product placementSale of brand name merchandiseSale of flavors not approved by the FDAAllowing access to websites without age verification on the landing pageRepresentations about nicotine not approved by FDAMisleading representations about nicotine contentSponsorships/naming rightsAdvertising in outlets unless 85 percent audience is adultAdvertising on billboardsPublic transportation advertisingSocial media advertising (other than testimonials by individuals over the age of 35, with no health claims)Use of paid influencersDirect-to-consumer ads unless age-verified, andFree samples.The agreement also includes sales and distribution restrictions, including where the product may be displayed/accessed in stores, online sales limits, retail sales limits, age verification on all sales, and a retail compliance check protocol.In addition to Nebraska, Alabama, Arkansas, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Kentucky, Maryland, Mississippi, Missouri, Montana, North Dakota, New Hampshire, New Jersey, Nevada, Ohio, Oklahoma, Oregon, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Wisconsin, and Wyoming have signed on to the settlement.

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