South Dakota Attorney General Mark Vargo has announced that the state will receive a grant of $6,181,829.70 as part of a settlement with Jull.
For young people in South Dakota, this is an important "holiday" and a wonderful day," said South Dakota Attorney General Mark Vargo. "It is well known that e-cigarettes are dangerous for young people, and this action helps to ensure they stay away from such products.
A survey has revealed that Juul has become the dominant player in the e-cigarette market by intentionally promoting its products to young people, despite them being illegal and unhealthy for this demographic. The investigation found that Juul marketed to underage users through events, ads featuring young and trendy models, social media posts, and free samples.
Juul marketed a tech-centric fashion design that easily concealed and sold its products with flavors appealing to underage users. Furthermore, Juul adjusted the chemical composition of its products to decrease the throat irritation caused by vapor for young and inexperienced consumers.
A new investigation has found that JUUL relies on ineffective age-verification technology in order to protect its young customer base. The study also revealed that JUUL's original packaging is misleading, as it does not explicitly disclose the presence of nicotine and suggests a lower nicotine concentration than is actually present. Consumers are also being misled to believe that consuming a single Juulpod is equivalent to smoking one combustible cigarette.
The company also falsely claimed that its product was a smoking cessation device, without obtaining FDA approval for such a statement.
States and territories are finalizing and implementing settlement agreements, with the process expected to take approximately 3-4 weeks. A total of $438.5 million will be paid over the course of 6 to 10 years, with the amount increasing as the company continues to make payments over a longer period. If JUUL chooses to extend the payment period to ten years, the final settlement amount will reach $476.6 million.
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