• Business Business

Massive class action settlement involving tobacco giant Juul is giving some Americans checks for thousands of dollars — here's what you need to know

Some countries, including China, have banned the sale of single-use vapes, while a few states in the U.S., including California and New York, have followed suit.

Some countries, including China, have banned the sale of single-use vapes, while a few states in the U.S., including California and New York, have followed suit.

Photo Credit: Getty Images

Some e-cigarette users have received hundreds and even thousands of dollars after Juul and Altria agreed to a pair of class action settlements totaling over $300 million. 

What's happening?

Lawsuits alleged that the e-cigarette companies misled consumers about the safety and addictiveness of their products while unlawfully marketing to minors.

According to NBC News, Juul agreed to a settlement in 2022, while Altria had its settlement approved earlier this year, which initiated the distribution of payments to approximately 842,000 eligible recipients. After taking into account fees, taxes, and contingencies, the claimants were entitled to a pool of $202 million, though the average payout has yet to be announced.

The amount a verified customer received was contingent upon how many receipts they had that showed proof of purchase. Many people posted screenshots on social media platforms of deposits from Juul Labs, some of which reached as high as four figures.

Why are Juuls concerning?

E-cigarette companies such as Juul have tried to bill their products as safer alternatives to traditional tobacco, but the Centers for Disease Control and Prevention noted that vapes still contain nicotine and other carcinogenic chemicals. 

Some of the associated health effects of using e-cigarettes include disrupted brain development for fetuses and adolescents, lung diseases, and depression.

Additionally, the rise of vape usage has corresponded to an increase in e-cigarette waste, as 5 million cartridges are disposed of each week in just the United Kingdom, per the BBC. That surge in popularity has inevitably led to more littering, which can then lead to the leaching of toxic materials including microplastics and heavy metals.

Vapes have also been a nuisance to drivers and cyclists, as many people have complained they punctured their tires.

The use of vapes by minors has also been a major concern of many parents and health officials. A public relations firm retained by Juul Labs issued a statement claiming the company has cut underage use of its products "by 98% since 2019 according to the most recent government data."

What's being done about Juuls?

A court has yet to rule on whether either company broke any laws, and Juul did not admit to any wrongdoing. Meanwhile, Altria, which once owned 35% of Juul but has since split, has denied the accusations. 

Some countries, including China, have banned the sale of single-use vapes, while a few states in the U.S., such as California and New York, have followed suit.

Individuals have also championed recycling or take-back programs to ensure cartridges don't end up in landfills and on the streets, and one Scottish woman even sparked a movement to get disposable vapes banned in the U.K.

Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.

Cool Divider