Juul, E-Cigarette Manufacturers Face Heightened FTC Scrutiny
Juul, E-Cigarette Manufacturers Face Heightened FTC Scrutiny
(Bloomberg) -- The Federal Trade Commission wants to know how e-cigarette manufactures are selling, advertising, and promoting their products, which are already facing scrutiny elsewhere in the executive branch and in Congress.
Juul Labs Inc., R.J. Reynolds Vapor Company, Fontem US, Logic Technology Development, Nu Mark, and NJOY are being compelled by the commission to provide it with data on their advertising and marketing; websites and social media used to advertise or sell their products; any affiliate or influencer marketing; and promotion on college campuses from 2015 through 2018.
The companies are already under intense pressure from President Donald Trump, who has said he wants to ban all flavored devices; the Food and Drug Administration; the Centers for Disease Control and Prevention; and two House committees. In addition, Massachusetts, San Francisco, Michigan, and New York are moving to ban sales, and multiple state attorneys general are investigating whether Juul violated consumer protection laws by marketing to people under age 18.
The companies will be required to show their sales tactics don’t hurt the public health, or they could face marketing restrictions under a proposed FDA rule.
Juul says it is facing 55 lawsuits in more than 20 states. The FDA has warned the company it may have violated the law by claiming its devices are safe.
R.J. Reynolds Vapor, a subsidiary of British American Tobacco Plc, makes an e-cigarette device called Vuse. Fontem, part of Imperial Brands Plc, sells vaping products under the Blu brand. Altria Group Inc. stopped selling Nu Mark MarkTen and Green Smoke e-vapor products last year.
The companies are also being asked to provide information about their sales, product flavors, nicotine concentrations within their devices, and number of devices given away.
The FTC compared this study to its work on cigarettes and smokeless tobacco products.
To contact the reporter on this story: Shira Stein in Arlington at sstein51@bloomberg.net
To contact the editors responsible for this story: Fawn Johnson at fjohnson36@bloomberg.net, Brent Bierman, Timothy Annett
©2019 Bloomberg L.P.