Arkansas will received $13.6 million from a multistate settlement with e-cigarette maker Juul Labs over the company’s marketing to teens, Attorney General Lesllie Rutledge announced.
The company agreed to pay nearly $440 million to settle a two-year investigation by 33 states. Juul’s products high-nicotine vaping products have long been blamed for sparking a national surge in teen vaping.
The settlement resolves one of the biggest legal threats facing the beleaguered company, which still faces nine separate lawsuits from other states. Additionally, Juul faces hundreds of personal lawsuits brought on behalf of teenagers and others who say they became addicted to the company’s vaping products.
The states’ investigation found that Juul marketed its e-cigarettes to underage teens with launch parties, product giveaways and ads and social media posts using youthful models, according to a statement.
Juul has agreed to refrain from a host of marketing practices as part of the settlement. They include not using cartoons, paying social media influencers, depicting people under 35, advertising on billboards and public transportation and placing ads in any outlets unless 85% of their audience are adults.
The deal also includes restrictions on where Juul products may be placed in stores, age verification on all sales and limits to online and retail sales.
Arkansas’ share of the settlement will paid out over five years.
Arkansas Business contributed information to this report.