The creators of Juul vape pens will be sending checks to some consumers after a lawsuit settlement over claims that the company charged higher prices and illegally marketed products to minors.
According to the lawsuit, plaintiffs paid more for Juul products than they would have if accurate information had been available about their addictiveness and safety. The court approved distribution of the funds on October 8.
While Juul Labs has not admitted to any wrongdoing, those who purchased Juul products in the United States on or before December 7, 2022, and submitted claims by the February 5 deadline qualify for a payment from the $300 million settlement.
The specific amount available will be based on how much each consumer spent on Juul products compared to the other settlement class members and the number of claims that were submitted.
Juul packages at Empire Smoke Shop on December 7, 2022, in the Flatbush section of Brooklyn in New York City. People who purchased Juul products in the United States on or before December 7, 2022, could qualify for a payment from the $300 million lawsuit settlement.
Michael M. Santiago/Getty Images
“Juul, like most companies, is not admitting wrongdoing and has decided to settle claims that they marketed their products towards minors or hid the addictiveness of the product,” Kevin Thompson, a finance expert and founder and CEO of 9i Capital Group, told Newsweek.
Newsweek reached out to Juul Labs for comment via email.
While the lawsuit alleged that Juul deliberately targeted minors with its e-cigarette marketing and used misleading advertisements that downplayed how much nicotine was in the product, the court did not decide whether the claims were true. Juul Labs agreed to pay back millions to users.
“Many young people became hooked on nicotine, leading to serious long-term health risks,” Thompson said of the lawsuit’s claims. “This settlement is part of a larger effort to hold Juul accountable for its role in the vaping crisis, and the money is meant to compensate consumers who were misled or harmed by the company’s actions.”
While many consumers may now be aware of Juul’s addictive nicotine ingredients, it might have been less obvious to consumers during Juul’s initial popularity, said Alex Beene, a financial literacy instructor for the University of Tennessee at Martin.
“It’s easy for us to realize now, but for those the lawsuit claims were affected by Juul’s practices prior to December of 2022, it’s not as clear if the company did everything in its power to alert consumers to the effects of its products,” Beene told Newsweek.
“Filing a claim is certainly one way of seeking financial assistance as a way of forgiveness, but the most important factor going forward is ensuring others, particularly minors, understand the effects of Juul’s products going forward before purchasing them.”
Michael Ryan, a finance expert and founder of michaelryanmoney.com, said the settlement highlights a larger trend of companies putting profits ahead of consumer health.
“This settlement isn’t just about reimbursing past purchases,” Ryan told Newsweek. “It’s about holding these companies accountable for their marketing strategies that have had serious financial and health consequences for consumers.”
Because Juul made more in profits than it is paying out, it’s unlikely the settlement will deter the company in the future, Ryan said.
During peak usage, many young adult Juul customers spent between $30 and $50 a week, paying thousands per year on the e-cigarettes.
“The settlement, which offers compensation ranging from $10 to several hundred dollars based on claim documentation, only covers a small portion of what many consumers actually spent on these products,” Ryan said.
