Juul Labs has been accused of marketing its products to minors and has now agreed to pay USD 40 million to North Carolina in order to settle the lawsuit, reports The New York Post.
The popular e-cigarette maker has faced a huge amount of pressure from regulators and governments in recent years with regard to its advertising, which is especially attractive to minors. Juul has already pulled several of its popular flavours and shut down various social media channels.
According to The New York Post, the settlement with North Carolina is the first to be reached with a state government. The deal includes a payment of USD 40 million as well as a restriction on sales and the requirement to produce yearly reports to demonstrate the company’s compliance.
Juul is still involved with over 2,000 other lawsuits with regard to its marketing practices. According to The New York Post, the US Federal Trade Commission has asked Juul and other e-cigarette producers to hand over their sales and advertising data.