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CT AG Leads $438.5M JUUL Settlement Over Youth Marketing

JUUL LabsJune 7, 2023Connecticut Attorney General

Penalty Amount

$438,500,000

Summary

Connecticut led a multistate settlement with JUUL Labs for $438.5 million over allegations of marketing vaping products to underage youth. The settlement funds are being directed to Regional Behavioral Health Action Organizations through new legislation to combat youth vaping, with requirements for transparency and evidence-based programs.

Remedy

JUUL Labs must pay $438.5 million, with Connecticut's share of approximately $16 million allocated to RBHAOs for vaping prevention and cessation programs. The legislation ensures that funds are used for evidence-based treatment and prevention, with updated reporting requirements similar to opioid settlement funds.

Monetary Penalty

Contract Impact

In-house legal teams should review distribution agreements, retailer contracts, and marketing partnership agreements for clauses related to youth access prevention. Specifically, examine marketing restrictions prohibiting minor targeting, mandatory age-verification system requirements, retailer compliance certifications, and compliance with federal/state tobacco and vaping regulations (e.g., FDA, state age-gating laws). Agreements may need amendments to enhance age-verification protocols, add mandatory training on youth marketing prohibitions, strengthen audit rights, include explicit penalties for non-compliance, and align reporting obligations with settlement monitoring requirements.

Contract Search Terms

age verification system requirementsmarketing to minors prohibitionyouth access prevention measuresretailer compliance certificationdistribution channel restrictionscompliance with tobacco/vaping regulationsinjunctive relief obligationssettlement monitoring and reportingtermination for non-complianceaudit rights for age-gating

Violation Types

Entity Details

Entity

JUUL Labs

Also known as: JUUL

Industry

Technology

Multistate Coalition

Official Sources

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