Juul Inc, a dominant player in the e-cigarette or Electronic Nicotine Delivery Systems (ENDS) market, agreed on September 6 to pay $438.5 million to settle claims by 34 US states and territories which said its marketing led to an increase in teenage vaping. “Juul’s cynically calculated advertising campaigns created a new generation of nicotine addicts”, said Connecticut Attorney General William Tong. “They relentlessly marketed vaping products to underage youth, manipulated their chemical composition to be palatable to inexperienced users, employed an inadequate age verification process, and misled consumers about the nicotine content and addictiveness of its products.” Limitations have been placed on its marketing and sales practices, such as the misleading representation of nicotine content in its product and the use of paid influencers. An investigation led by the US states of Connecticut, Texas and Oregon found that Juul was able to become the “most dominant player in the e-cigarette market by willfully engaging in an advertising campaign that appealed to youth.” What are electronic nicotine delivery systems (ENDS)? E-cigarettes, e-hookahs, e-pipes, vapes and vape pens are some examples of electronic nicotine delivery system (ENDS) products. They are electric devices that produce an aerosol made by heating a liquid, usually containing nicotine, flavourings and other chemicals. While some e-cigarettes look like regular cigarettes, others are slickly designed, often resembling everyday items like pens or USB drives like in the case for Juul. While ENDS were originally marketed to help smokers quit the habit or as a safer alternative to cigarettes they have become very popular among young people, often attracting non-smokers as well. According to UK’s National Health Service data accessed by The Telegraph, there has been a steady increase in its use or ‘vaping’ by children and teenagers in the country, as they are targeted by companies with “bright packaging, exotic flavours and enticing names.” The US Centre for Disease Control claims that while e-cigarettes have the potential to help adult smokers if used as a complete substitute for regular cigarettes, they can still cause harm. Apart from highly addictive nicotine, e-cigarette aerosol can also contain harmful substances like heavy metals and cancer-causing agents. What are the charges against Juul? With its launch in 2015, the slick USB-like Juul e-cigarette in sweet-fruity flavours like mango and crème brûlée, took the ENDS market by storm. According to Wired magazine, by 2018 Juul Labs, Inc’s annual revenue was about $2 billion and it was valued at $38 billion, after it accepted a $12.8 billion cash investment from Altria, (previously known as Philip Morris) one of the world’s biggest tobacco companies. Juul’s financial success coincided with the device's immense popularity among teenagers and young adults in Western countries. Between 2018 and 2019, the usage of Juul among 18 to 20-year-olds in the US doubled, and among those aged 21 to 24 it tripled, Reuters reported. Juul was widely blamed for creating a youth vaping “epidemic” and thousands of lawsuits were levelled against it. After significant pushback, the company announced in 2019 that it would discontinue its sweet flavours and only sell Virginia tobacco and menthol flavours. On June 23, the US Food and Drug Association (FDA) ordered Juul to stop selling its e-cigarettes in the US market, claiming it received “insufficient and conflicting data” about the product's impact on public health and safety. Juul, however, received a temporary stay from a US Court of Appeals the following day. On July 5, the FDA temporarily suspended the ban, stating that it would undertake an additional review of “scientific issues” in the Juul application, as reported by The New York Times. What is the legal status of the e-cigarette market in India? In September 2019 the Indian government banned the production, manufacture, import, export, transport, sale, distribution, storage and advertisement of all ENDS. As per the law, Juul and all other e-cigarettes are currently banned in India. Punishment for breaking the law ranges from a fine of one to five lakh rupees, as well as imprisonment for 1 to 3 years, while those found storing the devices shall face imprisonment of up to 6 months and/or a fine up to Rs 50,000. The government claimed that the ban would help “protect the population”, especially the youth and children, from the risk of addiction through e-cigarettes. A report by Prescient and Strategic Intelligence in July 2019, months before ENDS were banned in India, showed a thriving e-cigarette market in the country. From $7.8 million in 2018, the market was expected to reach $45.3 million by 2024, growing at a Compound Annual Growth Rate of 26.4 per cent, with young users holding the largest share of the market. So, despite a formal ban, e-cigarettes and vapes are available at cigarette shops and various online marketplaces. Most commonly sold are the disposable variety that cannot be recharged after one use, and cost anywhere between Rs 500 to Rs 3,500. Largely manufactured in China, brands such as iGet, Yuoto and Dyb sell their products in a variety of sweet-fruity flavours like ‘Lush Fruit’, ‘Cola Ice’ and ‘Iced Strawberry’ to attract more customers. Similarly, despite repeated attempts by the US FDA to curb the sales of sweet-flavoured e-cigarettes, Reuters has found that they are available at stores across the US. According to the report from August, at least 20 brands still sell disposable e-cigarettes, many manufactured in China.
