Juul to pay $14.5M to settle Arizona lawsuit

E-cigarette maker Juul will pay $14.5 million to Arizona, and will no longer market or sell its products to young people in the state, as part of a settlement for a consumer fraud lawsuit.

The settlement announced by state Attorney General Mark Brnovich (R) Tuesday ends a lawsuit filed in January 2020 against the company for allegedly illegally marketing its products to young people while misleading them on the risks.

Brnovich, who is running for Senate, alleged that Juul was “exploiting young people with tactics such as fruit flavors, social media campaigns, and free giveaways.”

As part of the settlement, Juul denied the allegations and did not admit any wrongdoing. But the company agreed to change some aspects of how it does business in the state.

All but $2 million of the $14.5 million will be used for programs to stop youth vaping, including cessation programs and education programs to prevent future youth e-cigarette use.

Juul agreed to implement a strict retailer monitoring program where it will do compliance checks of at least 25 stores per month across Arizona for two years and take action against those that illegally sell to underage smokers.

Juul also agreed not to advertise near schools or target anyone under 21, and pledged not to use social media to market. But Juul hasn’t done any advertising at all since 2019.