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Juul to Pay $14.5 Million to Settle Arizona Vaping Lawsuit The agreement requires Juul to not advertise near schools, target anyone under 21 or use social media to market.

By Amanda Breen

entrepreneur daily

E-cigarette company Juul Labs will pay Arizona $14.5 million and said it will no longer market to young people in the state to settle a consumer fraud lawsuit, AP News reports.

The settlement was announced on Tuesday by attorney general Mark Brnovich.

"Today's settlement holds Juul accountable for its irresponsible marketing efforts that pushed Arizona minors toward nicotine and the addiction that follows," Brnovich said in a statement. "Combatting the youth vaping epidemic remains a priority for our office with both our undercover Counter Strike program and zero tolerance for vaping companies that mislead or deceive."

The agreement requires Juul to not advertise near schools, target anyone under 21 or use social media to market.

Most of the $14.5 million Arizona settlement will go towards programs that discourage the use of vaping products, but $2 million will be put into a state account that funds consumer fraud investigations.

Related: Juul Reportedly Lays Off 650 Workers, Trims Spending by $1 Billion

Juul admitted no wrongdoing in settling the case, calling it "another step in our ongoing effort to reset our company." Before Brnovich sued, the company had ceased all advertising and stopped selling all flavored products with the exception of menthol.

This is the second settlement Juul has reached with state prosecutors. In June, the company paid the state of North Carolina $40 million with promises not to market to minors and boost enforcement of retailers who sell its products.

E-cigarettes are often promoted as the safer alternative to tobacco cigarettes because they provide the drug nicotine without giving off smoke that contains carcinogens, but they're still addictive and can harm consumers' health. Young people whose brains are still developing are particularly at risk.

Related: This Is the First Electronic Cigarette for Vaping Authorized by the FDA

Juul, which is partly owned by tobacco giant Altria, said it is in discussions to settle lawsuits filed in other states.

Amanda Breen

Entrepreneur Staff

Senior Features Writer

Amanda Breen is a senior features writer at Entrepreneur.com. She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

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