Juul pays $40 million settlement to North Carolina in teen vaping lawsuit

Juul Labs, Inc.will pay $40 million to settle a lawsuit in North Carolina in connection to the electronic cigarette company's marketing of its product toward potential underage buyers, state Attorney General Josh Stein announced Monday.

Though the company did not admit to any liability or wrongdoing as part of the settlement, Juul did agree to change how it sell and advertise the brand within the state. This changes includes how products must be sold behind store counters and nobody younger than 35 being allowed to be in any advertising or marketing material.

"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," Stein said. 

In May 2019, Stein became the first attorney general to sue Juul for its role in the unprecedented increase of youth vaping, according to The Hill.

The $40 million payment will be made to the state throughout six years, and Juul will now be required to use an independent age-verification system for its online sales, in addition to ensuring its third-party sales partners follow the same.

Juul will also send teenage “mystery shoppers” to 1,000 stores each year to ensure they are not selling the vapes to minors.

The settlement also keeps the company from advertising outdoors near schools, sponsoring sporting events and concerts, or from using most social media influencer advertising,  The Hill also reports. 

"This settlement is consistent with our ongoing effort to reset our company and its relationship with our stakeholders, as we continue to combat underage usage and advance the opportunity for harm reduction for adult smokers," Juul spokesman Josh Raffel said.