Juul Vaping to Pay $440M Settlement

Transcript

Good morning everyone. I’m Michele Carroll and welcome to the News Diet. Today I’m gonna talk about the $440M settlement by e-cigarette company Juul as well as breakdown its tumultuous history. Let’s be informed so we can get on with our day.

As a new channel, every new or returning viewer makes such a big difference so I just want to say thank you so much for tuning in. If you like what you see and feel the show is providing a healthier alternative for staying informed, then hitting that subscribe button would be a massive help in letting the youtube algorithms know that you want to see more of The News Diet in the future.

–

Electronic cigarette brand, Juul, has agreed to pay a settlement of almost $440 million after a two year investigation by 33 states. These states, as well as Puerto Rico, came together in 2020 to look into the company’s marketing practices - specifically its strategies targeting teenagers as well as its failure to highlight the levels of nicotine in its pods.

While the use of traditional cigarettes among teenagers has declined drastically over the last decade or so, with only about 10% of teenagers smoking in 2015, the years since have seen the sharp rise in the use of e-cigarettes, or vapes. Juul coincidentally hit the market in 2015 and claimed that the main goal of the product was to give users of real cigarettes a safer alternative. Even though they weren’t the first e-cigarette company, they quickly became the market leader thanks to slick product design, a range of trendy flavors like mango, mint, and creme brulee, and flashy marketing. In 2018 Juul claimed over 70% of the e-cigarette market and was valued at $38 billion. Around this time, a reportedly 3 million high schoolers were vaping.

In response to its quick rise, angry lawmakers and parents claimed that Juul was deliberately targeting young people via social media, launch parties, and through their advertising which often used young models. And that the labeling failed to explain what exactly was inside. For example, their products labeled as just a 5% nicotine strength, failed to mention that this level of nicotine was equivalent to about 20 standard cigarettes.

It was around this time that a judge ruled that the FDA was acting illegally by allowing the company to operate without agency review. So the FDA came out, called vaping an epidemic and started to crack down.

Juul started backing off of its strategy by reducing advertising efforts, removing the fruity and dessert flavors from stores, and even freezing their social media accounts. But in 2018, one of the world’s biggest tobacco companies, Altria, acquired a 35% stake in the company which hurt their claims that the brand was safer than traditional tobacco products. To add to that, an outbreak of the lung illness EVALI came to light. EVALI stands for e-cigarette or vaping use-associated lung injury which cast a cloud over the entire vaping industry.

In 2020, vaping as a whole saw a huge decline among teens users thanks to school closures from the pandemic and also the rise in vaping products using synthetic nicotine so therefore not subject to FDA approval. By 2021, Juul’s valuation had gone from its high of $38 billion to just $5 billion. Earlier this summer, the FDA tried to ban all Juul e-cigarettes from the market, but the company challenged, which now means the FDA will need more time to continue its review of the Juul technology.

Even though this large case has been settled, Juul is still battling nine other lawsuits from other states, as well as hundreds of personal lawsuits by teenagers who claim they’ve become addicted. The company has already settled other lawsuits including in Arizona, Louisiana, North Carolina, and Washington. This $440 million settlement is to be paid over the next six to ten years.

–

You’ve just been informed so now it’s time to get on with your day. I’m Michele Carroll. Thanks so much for listening.

–

If you enjoyed the episode and want to continue following a healthier alternative for staying informed, where I forgo partisan fighting and fear-driven narratives, then please be sure to hit that subscribe button - as of course you’ll get more of this show in your feed and also you’ll be helping this new channel grow and reject sensational media. Thank you so much for your support, and I can’t wait to see you in the next episode.

–

Listen to the podcast on the go:

Spotify: https://open.spotify.com/show/2V8LwOYl2KZhFOzTOA0tCt?si=a7a4a721528e48b1

Apple Podcasts: https://podcasts.apple.com/us/podcast/the-news-diet/id1577890561

Or anywhere you listen!

You can also follow The News Diet at:

Instagram: https://www.instagram.com/thenewsdiet/

Twitter: https://twitter.com/TheNewsDiet_

Facebook: https://www.facebook.com/thenewsdiet

Website: https://www.thenewsdiet.com/

–

Hosted by Michele Carroll.