In a settlement with North Carolina, Juul Labs has agreed to pay $40 million and has decided to change its business practices within the state.
“North Carolina is now the first state in the nation to hold Juul accountable for its instrumental role in creating a youth vaping epidemic,” said North Carolina Attorney General Josh Stein at a press conference announcing the agreement.
CNBC reports that the terms of the agreement announced on Monday include no longer advertising to minors, using anyone younger than 35-years-old in marketing material, or paying for influencers to promote its product, among other terms. The $40 million will fund preventative programs, teens addicted to vaping, and legal fees.
North Carolina began investigating Juul in 2018 and filed a lawsuit one year later. In May, a judge ruled that the company destroyed evidence and ignored court orders. The company was facing millions in fines, but the agreement will negate them.
Nine additional states have followed North Carolina’s lead and filed their own suits against Juul. At least 39 states are actively investigating the company.
Regulators and health officials have blamed Juul for the rise in the popularity of e-cigarettes among teens over the past few years.
The outlet reports that according to 2019 federal data, more than one in four high schoolers had used an e-cigarette in the past 30 days, which was up from 11.7 percent just two years prior. But that number has fallen as of late. As of 2020, the number of high school students who used an e-cigarette fell to 19.6 percent. The drop is attributed to greater regulatory scrutiny and the coronavirus pandemic.
