Tag: Juul Labs

  • ITC Bars Unauthorized Juul-Compatible Pods

    ITC Bars Unauthorized Juul-Compatible Pods

    Photo: JHVEPhoto

    The U.S. International Trade Commission (ITC) has issued a general exclusion order barring the importation of any unauthorized cartridges compatible with the Juul System that infringe Juul Labs patented product designs, including compatible flavored pods and refillable pods.

    This ruling follows a filing by Juul Labs submitted to the ITC on July 10, 2020, that sought a general exclusion order directed at all importers of unauthorized cartridges that copy Juul Labs’ patented pod designs without authorization.

    “Today’s ITC ruling represents a major victory against manufacturers of illicit vapor products who seek to bypass regulations and undermine efforts to create a more responsible marketplace for the category,” said Wayne Sobon, vice president, intellectual property at Juul Labs, in a statement.

    “In addition to targeting the importation of all infringing products, regardless of the brand, this sweeping action will provide the additional public benefit of helping rid the market of unauthorized Juul-compatible products that can be modified by the user, such as empty and refillable pods.”

  • FTC Complaint Against Altria’s Investment in Juul Dismissed

    FTC Complaint Against Altria’s Investment in Juul Dismissed

    Photo: Aerial Mike

    A U.S. Administrative Law Judge has dismissed the Federal Trade Commission’s (FTC) claims against Altria and Juul Labs arising out of Altria’s 2018 minority investment in Juul. Following a three-week trial, the judge found that the evidence failed to sustain the alleged violations.

    The judge’s decision is subject to review by the FTC. Any decision by the FTC may be appealed to any U.S. Court of Appeals.

    “We are pleased with this decision and have said all along that our minority investment in JUUL does not harm competition and does not violate the antitrust laws,” said Murray Garnick, executive vice president and general counsel of Altria, in a statement

    In April 2020, the FTC issued an administrative complaint against Altria and Juul alleging that Altria’s 35 percent investment in Juul and the associated agreements constitute an unreasonable restraint of trade in violation of Section 1 of the Sherman Antitrust Act of 1890 and Section 5 of the Federal Trade Commission Act of 1914, and substantially lessened competition in violation of Section 7 of the Clayton Antitrust Act.

    A public version of the decision is expected to be made available late this month.

  • Morgan Stanley: Antitrust Loss May be Win for Altria

    Morgan Stanley: Antitrust Loss May be Win for Altria

    Photo: Andriy Blokhin

    The Federal Trade Commission (FTC) may issue its initial decision in the Altria Group/Juul Labs antitrust case by Feb. 17, according to Morgan Stanley. The investment bank expects the FTC to instruct Altria to divest its stake in the e-cigarette manufacturer.

    While Morgan Stanley expects the market to react negatively if the FTC finds that Altria’s investment violates antitrust law, it sees little downside to Altria from an adverse ruling.

    Altria would likely appeal the decision, which could result in a multiyear legal process, first with the full Commission and then at the U.S. Court of Appeals. Altria would be able to retain its stake in Juul during this process.

    What’s more, Juul’s impaired valuation—the company was worth $1.7 billion in the fourth quarter of 2021, down from $12.8 billion—underscores Juul’s tempered growth prospects.

    Also, continuing the legal process leaves open the possibility that the companies can reach a favorable settlement.

    Alternatively, if Altria does not contest the FTC’s decision and sells its stake in Juul, it would benefit from crystallizing its loss on the original investment, according to Morgan Stanley, and could apply the tax shield to offset capital gains elsewhere

    The case dates to April 2020, when the FTC filed an administrative complaint against the companies, alleging that Altria’s investment in Juul violates federal antitrust laws and seeking to unwind Altria’s investment.

    The case has been before the administrative law judge since June 2021, with Altria and Juul defending their relationship and presenting extensive evidence and witnesses in support of maintaining Altria’s investment.

    The administrative law judge’s initial deadline to decide was Dec. 22, 2021, but the judge filed an extension twice due to the complexity of the issues and extensive amount of materials in the case.

  • Juul Settles Arizona Youth Marketing Case

    Juul Settles Arizona Youth Marketing Case

    Photo: steheap

    Juul Labs has agreed to pay $14.5 million to settle a lawsuit by Arizona accusing it of fueling a vaping epidemic by marketing its products to minors.

    The settlement, announced Nov. 23 by the office of Arizona Attorney General Mark Brnovich, provides for $12.5 million to be set aside for anti-addiction programs. The remaining $2 million will go to a general consumer protection fund and litigation expenses.

    As part of the consent judgment, pending court approval, Juul has committed to company-wide changes to its business practices to ensure that its products will not be marketed or sold to Arizona’s youth.

    “Today’s settlement holds Juul accountable for its irresponsible marketing efforts that pushed Arizona minors toward nicotine and the addiction that follows,” said Arizona Attorney General Mark Brnovich in a statement. “Combatting the youth vaping epidemic remains a priority for our office with both our undercover Counter Strike program and zero tolerance for vaping companies that mislead or deceive.”

    Juul said the settlement is another step in its ongoing effort to “reset” its company and applauded the Attorney General’s plan to deploy resources to address underage use. “We will continue working with federal and state stakeholders to advance a fully regulated, science-based marketplace for vapor products,” the company wrote in a statement. “As part of that process, we will continue to support Tobacco 21 and enforcement against illicit and illegally marketed products, such as certain disposables, that jeopardize the harm reduction potential of alternative vapor products.”

    The company said it remains in discussions with other key stakeholders about litigation related to its past as part of its commitment to earn trust.

    In June, Juul settled a similar case brought by North Carolina.

    The company still faces more than 2,000 lawsuits, including from state and local governments, accusing the company of creating a spike in nicotine addiction among teens by using fruit-flavored liquid pods, social media campaigns and free giveaways.

    Altria Group, which in 2018 acquired a 35 percent stake in Juul, is also named as a defendant in many of the lawsuits.

  • NC Juul Settlement to Fund Tobacco Control

    NC Juul Settlement to Fund Tobacco Control

    Photo: Chicken Strip

    For the first time since 2012, North Carolina’s state budget plan includes funds to help prevent young people from getting addicted to nicotine, reports NC Health News.

    Much of that money comes from a $40 million settlement that State Attorney Josh Stein reached this summer with Juul Labs following a lawsuit over the e-cigarette maker’s alleged targeting of young people.

    In 1998, North Carolina and 45 other states settled litigation with to recover healthcare cost incurred for treating sick smokers. The four largest U.S. tobacco companies agreed to pay $206 billion over 25 years, and part of that money was to be spent by the states on smoking-cessation programs.

    In reality, however, many states have directed their Master Settlement Agreement funds to other priorities. In 2013, when Republicans held control of both the North Carolina General Assembly chambers and the governor’s office, money stopped flowing to programs targeted at young smokers and nicotine users.

    The budget that Governor Roy Cooper signed into law on Nov. 18 transfers $2 million from the first $13 million allotment from the Juul settlement to the attorney general’s office to cover litigation costs.

    Another $4.4 million will go to tobacco cessation media campaigns, resources and programs to help children in middle school, high school and young adults quit vaping and using tobacco products after becoming addicted.

    The budget allocates $3.3 million for “evidence-based media and education campaigns” geared toward prevention of e-cigarette and tobacco use and $1.1 million for data monitoring to better understand how young people are exposed to such products and evaluate programs designed to help users quit.

    Nationally, more than two million children in middle school and high school used e-cigarettes in 2021, according to North Carolina health director Elizabeth Cuervo Tilson. Almost half of those high school students used e-cigarettes frequently, for as many as 20 out of 30 days. In North Carolina, Tilson added, a third of people in that age group used tobacco products, most of which are e-cigarettes.

  • Altria and Juul Support Age-Verification System

    Altria and Juul Support Age-Verification System

    Altria Group Distribution Co. and Juul Labs have announced their support of TruAge, a new digital solution that enhances current age-verification systems and protects user privacy.

    Developed by the National Association of Convenience Stores and Conexxus, TruAge makes it easier and more accurate to verify a customer’s age when purchasing age-restricted products. At the same time, the system makes identity theft difficult. One-time-use tokens are used to share only the most important elements to confirm the purchaser is of legal age, which also protects the user’s privacy.

    TruAge is free to retailers, consumers and POS providers, and its relevant intellectual property will be placed in the public domain—removing barriers to adoption.

    “We are excited to join this important initiative because TruAge deepens our trade partners’ support of underage prevention and helps establish retail as the most trusted place to responsibly sell tobacco products,” said Scott Myers, president and CEO of Altria Group Distribution Co., in a statement.

    “Over the past few years, we have worked closely with our retailer partners across the United States to implement enhanced access controls for the sale of Juul products, automatically requiring electronic ID scanning to verify the purchaser is at least 21 years of age and limiting the amount of product sold to reduce social sourcing,” said Parker Kasmer, vice president of regulatory engagement for Juul Labs.

    “We are eager to support TruAge and the extension of technologically based age-verification solutions across all vapor and other age-restricted products to combat underage use and support a more responsible marketplace.”

    TruAge is also supported by more than 130 retail companies that represent 22,000-plus convenience store locations in the United States, plus four industry point-of-sale providers.

  • Juul2 Launched in the United Kingdom

    Juul2 Launched in the United Kingdom

    Photo: steheap

    Juul Labs has unveiled its Juul2 device in the U.K.

    The device features a more consistent vapor experience, a longer battery life and anti-counterfeit technology.

    Launching initially on the Juul.co.uk website on Sept. 30, the Juul2 system has been updated from previous versions with new technology and features based on feedback from smokers.

    Among other features, the Juul2 features a more consistent vapor experience, a longer battery life and a smart light system communicating e-liquid level and battery life.

    The Juul2 also comes with newly designed tobacco and menthol Juul2 pods (18 mg/mL nicotine strength) and technology to prevent unauthorized use. The device will not work when it detects counterfeit pods.

    “We are pleased to launch the next-generation Juul2 in the U.K.,” Juul Labs’ EMEA vice president, Dan Thomson, said in a statement. “A key part of our mission is to transition adult smokers away from cigarettes, the leading cause of preventable death in the world, killing some 90,000 Britons annually.

    “We believe the best method to switch adult smokers from combustible cigarettes to a potentially less harmful noncombustible alternative is to provide a product that closely resembles the consistency and experience of smoking. With Juul2, we believe we are taking another step in that direction as we aim to transition even more adult smokers.”

    A retail rollout is planned for early 2022, and all U.K. retailers stocking Juul products will continue to uphold the company’s Challenge 25 age verification policy, which includes continued mystery shopping audits.

  • Juul Settlement to Fund Anti-Vaping Research

    Juul Settlement to Fund Anti-Vaping Research

    Photo: steheap

    North Carolina will use the $40 million settlement with Juul Labs, announced in June by Attorney General Josh Stein, to help fund research to stop the use of electronic cigarettes among young people, reports The Fayetteville Observer.

    “For years, Juul targeted young people, including teens, with its highly addictive e-cigarette,” said Stein. “It lit the spark and fanned the flames of a vaping epidemic among our children—one that you can see in any high school in North Carolina. This win will go a long way in keeping Juul products out of kids’ hands, keeping its chemical vapor out of their lungs and keeping its nicotine from poisoning and addicting their brains.”

    Juul Labs will pay North Carolina $13 million in the first year, $8 million the second year, $7.5 million the third year, $7 million the fourth year and $2.25 million the fifth and sixth years. The payout is set to fund programs conducting research and prevention of electronic cigarettes, according to Travis Greer, regional tobacco control manager for the Cumberland County Health Department.

  • Juul Plans Research Facility in North Carolina

    Juul Plans Research Facility in North Carolina

    Photo: steheap

    Juul Labs plans to open a research facility in Research Triangle Park, North Carolina, USA, reports WRAL.

    The new facility is expected to create 35 full-time jobs, according to a company spokesman.

    “We will continue to seek to earn the trust of key stakeholders, including local officials, as we advance the potential for harm reduction for adult smokers while combating underage usage,” Juul said in a statement.

    In June, Juul Labs settled a lawsuit brought by North Carolina Attorney General Josh Stein, who accused the company of marketing its product to young people. Juul agreed to pay $40 million but denied wrongdoing or liability. North Carolina was the first state to take legal action against Juul.

    At least 13 states, including California, Massachusetts and New York, as well as the District of Columbia, have filed similar lawsuits. The central claim in each case is that Juul knew, or should have known, that it was hooking teenagers on pods that contained high levels of nicotine.

    A lawsuit brought against Juul by North Carolina’s Wake County Public School System is currently ongoing.

    In 2020, e-cigarette usage decreased by 19.6 percent in high-schoolers and among middle-schoolers by 4.7 percent, according to the U.S. Federal Drug Administration. The U.S. Centers for Disease Control and Prevention contends nicotine can harm adolescent brain development.

  • Juul Class Action Moves Closer to Trial

    Juul Class Action Moves Closer to Trial

    Photo: steheap

    An expansive class action lawsuit against Juul Labs inched closer to trail when a federal judge advanced conspiracy and fraud claims against the company’s founders, board members and biggest investor, Altria Group, reports Court House News Service.

    On July 22, U.S. District Judge William Orrick III refused to dismiss the bulk of claims filed by 19 plaintiffs in 14 states. The suit accuses Juul and its leaders of intentionally using deceptive ads and marketing campaigns to get young people hooked on vaping to create a new generation of nicotine addicts.

    The plaintiffs say Juul failed to warn consumers that its e-cigarette products were highly addictive and that the company falsely claimed in ads and labels that its prefilled pods contained 5 percent nicotine, the same amount in a pack of cigarettes, when the pods contained much higher levels. They also say Juul fraudulently marketed its vaping products as a “safer alternative” to combustible cigarette smoking.

    The plaintiffs seek to hold Juul and Altria Group liable for fraud, negligence, negligent misrepresentation, strict product liability and medical monitoring.

    Judge Orrick rejected requests by Juul founders and top executives James Monsees and Adam Bowen to dismiss the claims against them, finding the plaintiffs “adequately alleged that both Monsees and Bowen engaged in acts that had the intent and impact of misleading the public and plaintiffs about the dangers of Juul.”

    Orrick also rejected Altria’s motion to dismiss, citing meetings that occurred between Altria and Juul in California regarding the development of “business agreements and arrangements through which Altria supported [Juul]’s manufacturing, regulatory, marketing and distribution efforts and how Altria’s efforts through [Juul] in California achieved their common goals.”

    Orrick found many of the arguments made by Altria and Juul’s founders and directors cannot be adequately evaluated until a later stage of litigation when more evidence is available for a jury or judge to scrutinize.