Juul Labs has agreed to pay a settlement of USD 438.5 million to end a probe of its marketing and advertising strategies to underage buyers, reports the BBC.
The deal, which apart from the settlement includes marketing restrictions such as not using people under the age of 35 in adverts has been reached with over 30 US states. The money will be paid out over six to ten years and will be widely used to fight tobacco use. Juul called the deal “a significant part” of its efforts to resolve “issues from the past”, according to the BBC.
Juul also said the terms of the settlement were in keeping with its marketing practices since a “company-wide reset” in 2019 and that it was “focused on the future”.
“We believe that once the FDA does a complete review of all of the science and evidence presented, as required by law, and without political interference, we should receive marketing authorization,” the firm said in a statement.
Juul is still facing private lawsuits as well as litigation in other states and continues to fight a ban of its products by the US Food and Drug Administration (FDA). Back in June, the FDA had banned US sales of Juul products due to insufficient data regarding the products’ impact on users’ health. Juul has since appealed the decision meaning the measure has been put on hold.