Capitol Notebook: E-cigarette maker Juul agrees to $5 million settlement over advertising to Iowa youth

The nation’s largest e-cigarette maker, Juul Labs Inc., will revamp its advertising and retail practices in Iowa and pay $5 million over a four-year period in order to resolve potential violations of state law.

Iowa Attorney General Tom Miller announced the settlement Wednesday to resolve potential violations of Iowa’s Deceptive Trade Practices Act.

Miller alleges that Iowa youth under the age of 21 were targeted by the company's products and became users in violation of state law.

“This agreement strikes a balance in truthful advertising and promotions of Juul devices and pods,” Miller said in a statement. “E-cigarettes should be promoted to smokers as a less harmful alternative, but not to youth.”

As part of the agreement, Juul will send $1.25 million each year to the Iowa Department of Health and Human Services. The funding will be used to provide resources and education to Iowa youth under the age of 21 targeted by the company's products who became users, including assistance in quitting e-cigarette use.

The company, which denies any wrongdoing, also agrees — among other provisions — to:

The company also agrees to designate a company officer to ensure its agreement with the Iowa Attorney General's Office is followed and to address compliance-related issues.

Juul Labs sought guidance from Miller in 2018, who the company tapped as part of initiative to keep its products out of the hands of young people.

The e-cigarette maker announced in April of 2018 that it would support state and federal initiatives to raise the minimum purchasing age for tobacco products as a part of a $30 million initiative over the next three years.

Part of that funding included research and a panel of former attorneys general and public health officials and experts assembled and led by Miller, who has a record of taking on the tobacco industry.

“The advisory group was independent of Juul, and neither he nor its members were compensated in any way,” according to a spokesperson for the Attorney General’s Office. “The group made recommendations to Juul that were similar to those that ended up in the settlement. The advisory group was disbanded (and AG Miller’s involvement ended) in late 2018.”

In 1998, Miller and attorneys general of 45 other states signed a settlement agreement with the four largest tobacco companies in the United States to settle suits on state health care costs associated with treating smoking-related illnesses.

The agreement — the largest in U.S. history — called for companies to pay the 46 states $206 billion over 25 years, and continue annual payments after that based on the number of cigarettes sold nationwide.

The state has received more than $1.41 billion in payments in the past 24 years under the master settlement agreement.

Schrock appointed district associate judge

Iowa Gov. Kim Reynolds this week appointed Brandon Schrock to be a district associate judge in Iowa’s 6th Judicial District.

Schrock, 43, of North Liberty, most recently has worked as a criminal defense lawyer in Johnson County for Linn County Advocate, a Cedar Rapids-based nonprofit.

He will fill the vacancy created by Judge Deborah Farmer Minot, who is retiring. Schrock received his undergraduate degree and law degree from the University of Iowa.

The 6th Judicial District covers Benton, Iowa, Johnson, Jones, Linn and Tama counties.