Wisconsin Could See $14M In Settlement With JUUL E-Cigarette Company

WISCONSIN — Dozens of states including Wisconsin could see a combined $438.5 million in a settlement agreement recently reached with e-cigarette manufacturer JUUL Labs, according to the state Department of Justice.

The agreement comes after a two-year investigation found JUUL misrepresented its product in certain ways and marketed to underage consumers, according to the Wisconsin DOJ. The Badger State could see about $14.4 million from the agreement, although officials did not immediately announce how those funds might be used.

JUUL quickly emerged as one of the leaders in the U.S. vaping market and managed to remain dominant until recently. But the company got there by willfully advertising in ways appealing to youth including launch parties, social media, certain flavors, free samples and beyond, according to the state DOJ.

The settlement comes as youth nicotine use is rapidly changing in Wisconsin. Eleven percent of middle schoolers have tried e-cigarettes in the Badger State, while up to 20 percent of high schoolers consider themselves current users of e-cigarettes, according to the state Department of Health Services.

“This settlement is a win for Wisconsin in our efforts to protect the health and safety of our youth from harmful nicotine products,” said Wisconsin Department of Health Services Secretary Karen Timberlake in the news release.

“For too long, middle and high schoolers have been the target of manipulative and harmful marketing practices for products like e-cigarettes," Timberlake said. "I applaud the efforts of the Wisconsin DOJ, along with other states and partners, to take action to hold JUUL accountable for exposing our youth to the dangers of nicotine, addiction, and a variety of new health risks.”

The investigation also found that the company's original packaging was misleading and that consumers were misled to believe one JUUL pod was the same as smoking one pack of cigarettes, according to the Wisconsin DOJ.

The agreement is still being finalized and the payments could come over a period of up to 10 years, according to the Wisconsin DOJ.

Beyond the settlement, authorites said JUUL agreed to refrain from various behaviors, including marketing to youth, depicting anyone under 35 in ads, using cartoons, paying for product placements, selling flavors that aren't approved by the FDA, advertising on billboards, using paid influencers and more.