Electronic cigarette maker Juul Labs Inc. will pay Baltimore City close to $8 million to settle a suit that alleged deceptive marketing to minors.
Filed in 2020, the lawsuit accused the company of initiating a marketing campaign that endangered the health of city residents and cost the city money to push back against the messaging.
The agreement allows the company the option of making a single payment of $7.5 million by the end of the year or making three payments of $3 million, $2 million, and $3 million in December, October 2025 and October 2026, for a total of $8 million, according to a Wednesday news release.
Juul Labs Inc., a California-based company, sells vaping products that offer adult smokers an alternative to combustible cigarettes and reduce the harm associated with tobacco while combatting underage use of the product, according to its website. However, The Baltimore Sun previously reported Juul targeted youth in its advertising campaigns with launch parties, young models and social media posts along with flavors appealing to underage customers.
Juul Labs Inc. did not respond to requests for comment.
“Since taking office, my administration has done everything in our power to invest in Baltimore’s young people to ensure they can reach their full potential,” Mayor Brandon Scott said in the release. “Achieving that aim means focusing on every aspect of their lives — including their health. When there is such a clear case of a company wrongfully targeting them to increase their bottom line, then we have a responsibility to take action and that’s what we did with this lawsuit.”
This settlement came after the city declined to join a global resolution that would recover $1.9 million. In 2022, Juul was set to pay Maryland $13 million under a settlement that resolves a multistate investigation, and Baltimore City was set to get a portion of the settlement. However, the city did not see that as fair compensation for the harm done, according to the release.
“We have and will continue to refuse settlement offers that do not fairly compensate Baltimore City for the harms that the misconduct of these companies bring on us,” said City Solicitor Ebony Thompson in the release.
