Juul Labs Inc. reached an agreement in principle to pay $438.5 million to 33 states to resolve a two-year bipartisan probe into the e-cigarette manufacturer’s marketing and sales practices, particularly claims that it marketed addictive nicotine products to children.
The accord, which also includes Puerto Rico, would force Juul to comply with a series of “strict injunctive terms severely limiting their marketing and sales practices,” Connecticut Attorney General William Tong, who led the negotiations with Texas and Oregon, said Tuesday in a statement.
Under the deal, Juul will refrain from all youth marketing, paid product placement, advertising on public transportation, funding education programs, depicting anyone under 35 years old in advertisement or using cartoons in ads, among other marketing activities, according to the statement. Juul also agreed not to advertise on billboards or use paid influencers to promote products.
