Hawaii sues Juul for deceptive marketing, bans flavored tobacco

The State of Hawaii is suing[1] the country's largest e-cigarette maker, JUUL Labs, and Altria Group, its largest shareholder and the parent company of Philip Morris, saying the companies used deceptive marketing to attract young customers.

Juul in the crosshairs of many US states for its marketing

The complaint accuses the defendants of using marketing strategies that targeted teenagers, making JUUL products appear attractive, downplaying the product’s nicotine content and its addictiveness. The State of Hawaii is seeking penalties of up to $10,000 per violation and monetary damages and an injunction requiring the defendants to cease their deceptive advertising practices and to fund programs as compensation, including vaping cessation programs.

Nicotine addiction among Hawaiian children, caused by the rise of e-cigarettes, is alarming - 2017 data from Centers for Disease Control and Prevention show that Hawaii has the highest vaping rate among middle school students and the second highest among high school students in the country. After years of fierce battles between states and the tobacco industry that led to significant reductions in youth tobacco use, new nicotine products, including e-cigarettes, have been aggressively marketed and labeled “deceptive” by state officials.

Bill to ban flavored nicotine products introduced[2].

A bill in 2020[3], relating to combating the youth tobacco epidemic, would ban the sale or distribution of all flavored nicotine products in the state. In 2009[4], the federal Tobacco Control and Prevention Act banned flavors, including fruit and candy flavors, in cigarettes, but not all tobacco products or other vaping devices that contain nicotine.

The bill states that while there has been a decline in the use of traditional cigarettes over the past decade, there has been a dramatic increase in the use of electronic devices among Hawaii youth. In 2017, 27% of middle school students and 42% of high school students in public schools tried e-cigarettes[5].

Hawaii state officials have concluded that action to regulate flavored nicotine products is needed to reduce tobacco-related health disparities and combat the youth vaping epidemic.

Deterrent sanctions for non-compliance with the law

If passed, the bill would prohibit any retailer from selling or possessing with intent to sell any flavoured tobacco product or vaping product to anyone under the age of 21. It would also prohibit misrepresenting that an e-liquid is nicotine-free if the product does contain nicotine, or marketing or promoting any electronic device that is likely to target a young person under the age of 21.

Similarly, if adopted, the bill would also prohibit any mention on packaging that refers to a flavor. In the event that a flavored product is found in the possession of a retailer, it will be seized and considered a contraband product. A first offense would result in a fine of 500 $. In the event of a repeat offense, the fine could be increased from 5,000 $ to 2,000 $. Each flavored product, regardless of the brand, would be considered a separate offense.

Any person under 21 years of age in possession of prohibited material will be fined 10 $ for the first offence, they will also have to follow an education or nicotine-containing product cessation programme and perform three hours of community service (TIG). In the event of a repeat offence, the fine will be increased to 50$ and up to 72 hours of TIG will have to be performed.

If passed on third reading and signed by Gov. David Ige, the bill would become effective Sept. 1.