The Federal Trade Commission allegedly investigates Juul Labs, the launch of e-cigarettes, into its marketing practices, according to a report in The Wall Street Journal. The government agency is particularly interested in whether Juul has used misleading marketing aimed at minors. It also investigates how Juul hires influencers to sell its products. The FTC can claim monetary compensation.
In a statement to the diary, Juul said it used influencers in a "small, short-lived pilot" that ended last year. The company paid less than $ 10,000 to fewer than 10 adults over the age of 30 who were current or former smokers, the spokesperson told the newspaper.
The research has apparently been in the pipeline since last year, even before Altria Group tobacco conglomerate invested more than $ 12 billion to take a 35 percent stake in the startup. The first FTC letter requesting marketing information was sent to Juul in September. News about this research is in line with earlier reports that the Food and Drug Administration, together with various advocates-general, are also investigating Juul's marketing practices. The FDA Juul asked to transfer information that could explain why the devices are popular with young people, and then inspect the company office looking for related documents.
Meanwhile in an interview today, Kevin Burns, CEO of Juul Lab, warned non-smokers to never use the company's products. "Don't evaporate," Burns said in an interview CBS This morning. "Don't use Juul." He went on to say that the product was not designed for people who do not yet have an "existing relationship" with nicotine.
The American surgeon-general declared that the youth would have an epidemic in 2018 and specifically noted the popularity of Juul in his advice. A study published earlier this year showed that people who started to foster in their teens would smoke cigarettes more often in later life.
Juul is now working on reducing the youth market that it says it never wanted in the first place. It has created a Bluetooth-compatible e-cigarette that requires users to submit a government-issued photo identification to use the product. It also encourages retailers to install an electronic age verification system on their point-of-sale software. The company is willing to offer up to $ 100 million in incentives to get them to do so.