The Federal Trade Commission (FTC) is investigating the marketing practices of e-cigarette startup Juul, according to the Wall Street Journal citing people familiar with the matter, ratcheting up pressure on a company whose products are blamed for a rise in vaping among teens.
FTC investigators are looking at whether Juul engaged in deceptive marketing, including by targeting minors or using influencers, some of the people said. The agency also is determining whether to seek monetary damages, one of the people said.
“We fully cooperate and are transparent with any government agency or regulator who have interest in our category,” a Juul spokesman said. The company claims it has never marketed to youth and that its products are intended for adult cigarette smokers.
“Our paid influencer program, which was never formalized, was a small, short-lived pilot” that ended last year, the spokesman said. The company paid less than US$10,000 to fewer than 10 adults who were smokers or former smokers over the age of 30, he said.
Full Content: Wall Street Journal
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