Juul to pay $40M to settle North Carolina lawsuit alleging it pushes nicotine on to teens
State had accused company of using unfair and deceptive marketing practices to target kids

Electronic cigarette giant Juul Labs Inc. will pay $40 million to North Carolina and take more action to prevent underage use and sales, according to a landmark legal settlement announced Monday after years of accusations that the company had fueled an explosion in teen vaping.
A state judge accepted the first-of-its-kind agreement with a state. North Carolina Attorney General Josh Stein had sued Juul, accusing it of employing unfair and deceptive practices that targeted young people to use its vaping products, which deliver addictive nicotine. The lawsuit had been scheduled for trial next month.
As part of the agreement, Juul will not advertise to anyone under 21 in North Carolina, including through social media, and will limit sales amounts of Juul products online to any state residents. It will also sell its products only behind counters at retailers that have ID scanners to ensure customers are of age.
Teen use of e-cigarettes skyrocketed more than 70 per cent after Juul's launch in 2015, leading the U.S. Food and Drug Administration to declare an "epidemic" of underage vaping among teenagers. Health experts said the unprecedented increase risked hooking a generation of young people on nicotine, an addictive chemical that is harmful to the developing brain.
'Spread a disease'
"Juul sparked and spread a disease — the disease of nicotine addiction. They did it to teenagers across North Carolina and this country simply to make money," Stein, a Democrat, said after a brief court hearing. "Today's court order will go a long way towards ensuring that their e-cigarettes product is not in kids' hands, its chemical vapor is out of their lungs, and that the nicotine does not poison or addict their brains."
Juul, which is partially owned by Altria Group Inc., has seen sales fall after already halting all advertising and social media promotion and pulling most of its flavours except for menthol.
"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 said in a statement after the court hearing. "We seek to continue to earn trust through action."