Juul Labs, one of the major e-cigarette businesses in the US, Juul, has all of its products illegally sold in the US.
The Food and Drug Administration (FDA) declared that it lacked sufficient information to determine if advertising the company’s products were “appropriate for the protection of public health.” Therefore, according to Juul Labs, the action would be contested.
After previous anti-smoking initiatives by the FDA, such as proposals to lower the permissible level of addictive nicotine in cigarettes, this initiative was announced. Fruity flavors that contributed to Juul’s popularity among youngsters a few years ago were already prohibited by the government.
FDA Commissioner Robert M. Califf stated in a statement that “today’s action is additional progress on the FDA’s commitment to ensuring that all e-cigarette and electronic nicotine delivery system products currently being marketed to consumers fulfill our public health requirements.”
Two former smokers who started Juul Labs Inc., in California in 2015 have marketed their vaping pods as a healthier alternative to conventional tobacco cigarettes. However, the high nicotine content products caused concern as teen use skyrocketed; in 2019, a federal poll found that more than 25% of high school students were using e-cigarettes.
According to the FDA, businesses must submit their e-cigarette goods for approval starting in 2020. Some of them have since received the all-clear from it. The FDA said in its statement that it had no knowledge of any “immediate hazard” and had not received such information. However, it also acknowledged Juul’s continued dominance in the market, given that the evaluated products had 3 and 5 percent nicotine concentrations.
We acknowledge that they comprise a sizeable share of the items on the market, and many of them have contributed disproportionately to the surge in juvenile vaping, Mr. Califf said.
As it considers its options, including an appeal, Juul Labs said it would ask for a stay of the decision. This would let it continue selling.
The company’s chief regulatory officer, Joe Murillo, stated in a statement: “We respectfully disagree with the FDA’s conclusions and determination and continue to feel we have provided adequate information and data based on high-quality research to address all problems identified by the agency.”
“We intend to ask for a stay and are looking into every legal and regulatory option available to us, including appealing the ruling and speaking with our regulator.
He continued, “We are committed to doing all in our ability to continue servicing the millions of American adults who have successfully switched to our products from combustible cigarettes, which are still sold on store shelves all across the country.
Juul’s company has already been negatively impacted by regulatory action due to an investigation into its tactics for targeting teenagers and tighter restrictions on the flavors that might be marketed. In addition, outside of the US, its growth has been constrained by international limitations.
Altria Group, which paid over $12 billion for a 35 percent stake in the business in 2018, has had to write off the majority of the value of its investment. Following a Wall Street Journal article detailing the ban’s plans, the company’s stock fell 9 percent on Wednesday.
