Hawaii will receive $6.8 million as part of a settlement between JUUL Labs and 34 states and territories regarding the company’s marketing and sales practices.
Hawaii Attorney General Holly T. Shikada announced the state's portion of a settlement that totals $438.5 million and resolves a two-year bipartisan investigation into the way the e-cigarette manufacturer targeted youth, according to a Sept. 6 news release from the office of Gov. David Ige.
“Hawaii’s youth have been disproportionately affected by the nationwide vaping epidemic,” Shikada said in the release. “This settlement holds JUUL accountable for its targeted and misleading marketing and aims to prevent JUUL from getting more of our children addicted to its products.”
The multistate investigation revealed JUUL rose to be the dominant player in the vaping market by willfully engaging in an advertising campaign that appealed to youth, even though its e-cigarettes are both illegal for them to purchase and are unhealthy for youth to use, the release reported.
According to the release, JUUL relentlessly marketed to underage users “with launch parties, advertisements using young and trendy-looking models, social media posts and free samples. It marketed a technology-focused, sleek design that could be easily concealed and sold its product in flavors known to be attractive to underage users.”
The investigation also showed JUUL made its vapor less harsh on the throats of young and inexperienced users, and its packaging did not clearly disclose that it contained nicotine, the release reported. The company was also charged with misrepresenting that its product was a smoking cessation device without FDA approval.
In addition to the financial terms, the settlement will also include "strict injunctive terms severely limiting their marketing and sales practices," the release reported.
Data compiled in 2017 by the Centers for Disease Control and Prevention shows Hawaii has the highest vaping rate among middle schoolers and the second highest among high schoolers in the nation, according to the release. Hawaii’s claims against Altria Group Inc. — the parent company of Philip Morris and JUUL’s largest shareholder — is not affected by the settlement and remain active.