Juul to Pay Nearly $440M to Settle US States’ Teen Vaping Probe

Electronic cigarette maker Juul Labs has agreed to pay nearly $440 million to settle a two-year investigation by 33 U.S. states into the marketing of its high-nicotine vaping products, which have long been blamed for sparking a national surge in teen vaping.

Connecticut Attorney General William Tong announced the deal Tuesday on behalf of the states plus Puerto Rico, which joined together in 2020 to probe Juul’s early promotions and claims about the benefits of its technology as a smoking alternative.

The settlement, which includes numerous restrictions on how Juul can market its products, resolves one of the biggest legal threats facing the beleaguered company, which still faces nine separate lawsuits from other states. Additionally, Juul faces hundreds of personal lawsuits brought on behalf of teenagers and others who say they became addicted to the company’s vaping products.

The states’ investigation found that Juul marketed its e-cigarettes to underage teens with launch parties, product giveaways and ads and social media posts using youthful models, according to a statement.

“We think that this will go a long way in stemming the flow of youth vaping,” Tong said at a news conference at his Hartford office.

“I’m under no illusions and cannot claim that it will stop youth vaping,” he said. “It continues to be an epidemic. It continues to be a huge problem. But we have essentially taken a big chunk out of what was once a market leader, and by their conduct, a major offender.”

The $438.5 million will be paid out over a period of six to 10 years. Tong said Connecticut’s payment of at least $16 million will go toward vaping prevention and education efforts. Juul previously settled lawsuits in Arizona, Louisiana, North Carolina and Washington.

The settlement total amounts to about 25% of Juul’s U.S. sales of $1.9 billion last year. Tong said it was an “agreement in principle,” meaning the states will be finalizing the settlement documents over the next several weeks.

Most of the limits imposed by Tuesday’s settlement won’t immediately affect Juul, which halted use of parties, giveaways and other promotions after coming under scrutiny several several years ago.

Teen use of e-cigarettes skyrocketed after Juul’s launch in 2015, leading the U.S. Food and Drug Administration to declare an “epidemic” of underage vaping among teenagers. Health experts said the unprecedented increase risked hooking a generation of young people on nicotine.

But since 2019 Juul has mostly been in retreat, dropping all U.S. advertising and pulling its fruit and candy flavors from store shelves.

The biggest blow came earlier this summer when the FDA moved to ban all Juul e-cigarettes from the market. Juul challenged that ruling in court, and the FDA has since reopened its scientific review of the company’s technology.

The FDA review is part of a sweeping effort by regulators to bring scrutiny to the multibillion-dollar vaping industry after years of delays. The agency has authorized a handful of e-cigarettes from Juul’s competitors for adult smokers looking for a less harmful alternative.

While Juul’s early marketing focused on young, urban consumers, the company has since shifted to pitching its product as an alternative nicotine source for older smokers.

“We remain focused on our future as we fulfill our mission to transition adult smokers away from cigarettes—the number one cause of preventable death—while combating underage use,” the company said in a statement.

Juul has agreed to refrain from a host of marketing practices as part of the settlement. They include not using cartoons, paying social media influencers, depicting people under 35, advertising on billboards and public transportation and placing ads in any outlets unless 85% of their audience are adults.

The deal also includes restrictions on where Juul products may be placed in stores, age verification on all sales and limits to online and retail sales.

“These are some of the toughest mandates at any point on any industry,” Tong said, “which is incredibly important because at the end of the day this is about protecting our kids and protecting all of us from a very significant public health risk.”

Juul initially sold its high-nicotine pods in flavors like mango, mint and creme. The products became a scourge in U.S. high schools, with students vaping in bathrooms and hallways between classes.

But recent federal survey data shows that teens have been shifting away from the company. Most teens now prefer disposable e-cigarettes, some of which continue to be sold in sweet, fruity flavors.

Overall, the survey showed a drop of nearly 40% in the teen vaping rate as many kids were forced to learn from home during the pandemic. Still, federal officials cautioned about interpreting the results given they were collected online for the first time, instead of in classrooms.

Source: Voice of America

California Facing Chance of Blackouts Amid Brutal Heat Wave

California is facing its highest chance of blackouts this year as a brutal heat wave continues to blanket the state with triple-digit temperatures. State energy officials said the electrical load Tuesday afternoon could top 51,000 megawatts, the highest demand the state has ever seen.

As people crank up their air conditioners, the state forecasted record levels of energy use, said Elliot Mainzer, president of California Independent System Operators, which runs the state’s electrical grid. The state has additional energy capacity at the moment “but blackouts, rolling, rotating outages are a possibility,” Mainzer said, calling additional conservation “absolutely essential.”

The CAISO site Tuesday morning showed California could fall more than 5,000 megawatts short of its power supply at peak demand, forecasted for 5:30 pm.

The danger of wildfires was extreme as scorching heat and low humidity turned brush to tinder. Four deaths were reported over the Labor Day weekend as some 4,400 firefighters battled 14 large fires around the state, with 45 new blazes on Sunday alone, said Anale Burlew, a deputy chief with the California Department of Forestry and Fire Protection.

In Southern California, two people were killed and one injured by the Fairview Fire, which started Monday near the city of Hemet, the Riverside County Fire Department said. Roughly 50 miles (80 kilometers) southeast of Los Angeles, the fire had quickly spread to at least 2,400 acres (971 hectares), prompting evacuations, and was only 5% contained. Multiple residential structures burned.

The dead people were not immediately identified. Authorities said both were found in the same area but it was not known if they were from the same household. They were apparently trying to flee when they were overcome.

California’s energy grid runs on a mix of mostly solar and natural gas during the day, along with some imports of power from other states. But solar power begins to fall off during the late afternoon and into the evening, which is the hottest time of day in some parts of the state. And some of the aging natural gas plants California relies on for backup power aren’t as reliable in hot weather.

At CAISO’s request on Monday, four temporary emergency power generators deployed by the Department of Water Resources in Roseville and Yuba City were activated for the first time since they were installed last year, providing up to 120 megawatts, enough electricity for 120,000 homes.

CAISO also has issued a Flex Alert call for voluntary conservation between 4 p.m. to 10 p.m. Tuesday, making seven alerts in as many days. Consumers were urged to keep air conditioners at 78 degrees (25.5 degrees C) or higher during the period and avoid using major appliances such as ovens and dishwashers.

The efforts have worked to keep the lights on “but we have now entered the most intense phase of this heat wave” that could last into the week, and two to three times the level of conservation will be needed from people and businesses, Mainzer said.

CAISO also issued a Stage 2 Energy Emergency Alert from 6:30 p.m. to 8 p.m. Monday. The second of three emergency alert stages means taking emergency energy-saving measures “such as tapping backup generators, buying more power from other states and using so-called demand response programs,” according to a CAISO website. Stage 3 would be rolling blackouts.

Several hundred thousand Californians lost power in rolling blackouts in August 2020 amid hot weather, but the state avoided a similar scenario last summer. Gov. Gavin Newsom signed legislation on Friday that could allow the state’s last remaining nuclear plant to stay open beyond its planned 2025 closure, to ensure more power.

The National Weather Service predicted highs between 100 and 115 degrees (37.7 C and 46.1 C) across inland California, with 80s to 90s (above 26.6 C and below 37.2 C) closer to the coast. Nighttime won’t bring much relief, with many places seeing lows in the 80s or even 90s (above 26.6 C and below 37.2 C).

Ironically, unsettled weather also brought the chance of thunderstorms over Southern California and into the Sierra Nevada, with a few isolated areas of rain but nothing widespread. The storms also could produce lightning, forecasters said, which can spark wildfires.

South of the Oregon state line, the Mill Fire was 55% contained Tuesday morning after killing two people, injuring others and destroying at least 88 homes and other buildings since it erupted last week, CalFire said. The bodies of the two women, 66 and 73, were found in the city of Weed on Friday, the Siskyou County Sheriff’s Office announced Monday. Details weren’t immediately released.

A few miles away, the Mountain Fire grew to nearly 18 square miles (29 square kilometers) and only 20% contained, with winds threatening to renew its eastward spread in steep terrain, fire officials said.

Scientists say climate change has made the West warmer and drier over the last three decades and will continue to make weather more extreme and wildfires more frequent and destructive.

Source: Voice of America