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CT AG Leads $438.5M Multistate Settlement with JUUL Over Youth Marketing

JUUL LabsSeptember 6, 2022Connecticut Attorney General

Penalty Amount

$438,500,000

Summary

Connecticut Attorney General William Tong led 34 states and territories in a $438.5 million settlement with JUUL Labs over its youth-targeted marketing and misleading practices. The settlement includes strict injunctive terms prohibiting youth marketing, certain flavors, and requiring age verification. Funds will support tobacco cessation programs.

Remedy

JUUL must pay $438.5 million over six to ten years and comply with extensive injunctive restrictions, including bans on youth marketing, use of cartoons, paid influencers, social media advertising to youth, and sales of non-FDA approved flavors. The agreement also imposes sales and distribution controls, age verification requirements, and retail compliance checks.

Monetary PenaltyInjunctionConsent Decree

Contract Impact

In-house legal teams should review distribution, sales, and marketing agreements with JUUL Labs or similar entities. Focus on clauses governing marketing and advertising practices, age verification mechanisms, product representations (especially nicotine content and addictiveness), and compliance with consumer protection laws. Specific changes may include adding explicit prohibitions on youth-targeted marketing (including social media and influencer campaigns), mandating robust age verification systems, restricting certain flavors, requiring accurate and non-misleading product labeling, and incorporating audit rights and reporting obligations to ensure adherence to injunctive terms.

Contract Search Terms

youth marketing prohibitionage verification requirementsflavor restrictionsnicotine content disclosuresmisleading advertising prohibitionssales to minors prohibitionsinjunctive relief compliancemarketing channel restrictionssocial media marketing limitsinfluencer marketing bans

Violation Types

Entity Details

Entity

JUUL Labs

Also known as: JUUL

Industry

Technology

Multistate Coalition

Official Sources

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