Colorado Attorney General Phil Weiser announced April 12 Colorado will receive nearly $32 million after a $462 million multistate settlement was reached with Juul Labs, Inc.
In 2020, Colorado sued Juul after the state’s investigation suggested the company was targeting young people in their marketing and misrepresenting the health risks posed by their products, according to a press release.
“This settlement is a victory for the state of Colorado and everyone who fell victim to Juul’s reckless, deceptive and unconscionable marketing tactics,” Weiser said in a press release. “While no amount of money or new restrictions on Juul’s business practices can undo the harms caused by the teen vaping epidemic, this settlement will make great strides towards reducing it and can support young people who are hurting now more than ever.”
Along with the monetary settlement, the agreement comes with new requirements restricting how Juul can advertise to Colorado residents, the press release noted. That includes forbidding the company’s use of certain promotional tactics and materials, along with sales and distribution restrictions.
The press release added that in order to make sure Juul complies with the agreement, the company will be required to hire a compliance officer who will oversee the implementation of the agreement. Millions of Juul’s internal documents will also be disclosed through a public document depository, the press release continued.
The settlement funds will be used to reimburse the state’s actual costs and attorneys’ fees and for other consumer welfare purposes, the press release said, including funding additional measures preventing youth tobacco use and addressing harms from underage vaping.
Colorado’s settlement included a coordinated effort with other attorneys general that sued Juul, including in California, the District of Columbia, Illinois, Massachusetts, New Mexico and New York, the press release continued. Last year, 34 states decided not to take legal action against Juul and entered into a $438 million settlement with the company, the press release added.