Juul was once the multi-billion dollar startup that pioneered the e-cigarette industry. But after numerous lawsuits and FDA crackdowns, many wonder – is Juul still even in business today?
Juul rose to fame for its flavored nicotine pods and sleek vaping devices. However, the company has faced growing backlash over its marketing practices and allegations it deliberately targeted youth.
Let’s explore Juul’s current situation and the outcomes of major legal battles against the company.
Is Juul Still Operating?
Yes, Juul is still actively operating and selling its products today.
According to the company’s website, Juul’s central goal is to “eliminate combustible cigarettes”. It continues to market its e-cigarettes as an alternative to traditional smoking.
Juul implements safeguards to prevent underage sales online and in stores. Its website requires age verification for full access.
FDA Denied Juul’s Authorization Request
In June 2022, Juul suffered a major defeat when the FDA denied its request to legally market its vaping products in the United States.
The FDA determined Juul’s premarket tobacco product applications lacked adequate evidence the products are safe for public health. The agency cited conflicting and insufficient data from Juul’s own studies.
This FDA decision threatened to wipe out Juul’s entire US business. However, in July 2022, the FDA temporarily reversed the ban pending further review.
What Juul Products Are Still Sold?
While Juul rocketed to popularity with flavored nicotine pods in youth-friendly options like mango and mint, today it only sells two flavors – tobacco and menthol.
Juul devices and pods remain available for purchase on its website and in many retail outlets.
The company is also reportedly developing new technology with age-verification features to prevent underage sales.
Lawsuits and Settlements Against Juul
Juul has faced over 5,000 individual lawsuits alleging deceptive marketing, failure to warn of health risks, and targeting youth.
In January 2022, Juul settled one consolidated class action lawsuit for $255 million. The plaintiffs accused Juul of using influencer marketing and ads appealing to teenagers.
In September 2022, Juul agreed to pay $432 million to settle dozens of state investigations into its marketing practices.
Then in December 2022, Juul settled around 5,000 cases in California for a total of $1.2 to $1.7 billion.
Total Settlement Costs
In total, Juul has had to pay approximately $2 billion to resolve legal claims against the company:
- $255 million class action settlement in January 2022
- $432 million to state investigations in September 2022
- $1.2 to $1.7 billion to California lawsuits in December 2022
Much of the scrutiny stemmed from allegations Juul intentionally marketed to youth and downplayed the addictiveness of nicotine in its vaping products.
The massive settlement costs indicate Juul chose to settle rather than fight thousands of legal claims. However, Juul has not admitted any wrongdoing in the settlements.
Where Is Juul Now?
Despite the denied FDA application, multiple lawsuits, and settlement fees in the billions, Juul manages to remain in business today.
However, the company operates in a limited capacity compared to its meteoric rise to a $38 billion valuation by 2018. Juul faces tighter regulations and public perception challenges.
While still generating significant revenue, primarily from tobacco and menthol pod sales, Juul has a long road ahead to rebuild its reputation and trust. But the e-cigarette maker continues to market its products as “alternatives to combustible cigarettes” for adult smokers.
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