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Vape companies agree to multimillion-dollar settlement with major impact on industry's future: 'It was worth it'

"We now have strong court-enforceable limits."

Juul and Altria settled a lawsuit with the state of Alaska for $7.8 million.

Photo Credit: iStock

The state of Alaska has reached settlements with two vape companies after lawsuits alleged they deliberately targeted children. 

According to KTOO, Juul and Altria, two of the largest vape companies in the world, settled their suits for a combined $7.8 million. 

Under the terms of the settlement, neither company needs to admit fault, but both must adhere to new marketing restrictions. Most notably, Juul can't use cartoons to advertise their products anymore. 

"This case took five years and a great deal of work from our public health and consumer protection teams, but it was worth it," said Alaska Attorney General Stephen Cox, in a prepared statement.

"We now have strong court-enforceable limits on how these companies can operate in Alaska, and we've obtained a per-capita recovery that ranks near the top nationally, with those dollars going straight into prevention and consumer protection."

The settlement marks one of the last suits to close from states that have gone after vape companies for their questionable marketing practices; Juul alone has paid out well over $1 billion in settlement money to states, local municipalities, and individuals, per Reuters

Vaping has become a serious problem among young people around the world. The nicotine delivery system is highly addictive, particularly to younger people. According to the Food & Drug Administration, 1.63 million youth vaped in the United States in 2024, which represents 5.9% of the population under 18. 

Vapes can pose a serious health risk; the Centers for Disease Control and Prevention reported that they can contain carcinogenic chemicals and small particles, which can lead to respiratory problems. 

But the problems extend beyond that; vapes contain heavy metals like lead, nickel, and mercury, which can leach into soil and pollute it. Their lithium-ion batteries pose a fire risk if they are not disposed of properly, and their casings produce microplastics that can persist in the soil for centuries. 

Half of Alaska's settlement money will fund tobacco control and prevention programs, while the other half will go into the state's Department of Law's consumer protection program. 

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"The use of vapes and other nicotine products among youth in Alaska remains a concern," said Alaska Department of Health Commissioner Heidi Hedberg in a prepared statement. "This funding will help families and communities continue to access education, prevention, and cessation programs."

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