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FDA Warns Juul On Marketing To Youth

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FDA Warns Juul On Marketing To Youth

The Food and Drug Administration released a statement Monday that warns Altria Group Inc (NYSE: MO)'s Juul Labs for marketing unauthorized modified risk tobacco products — including to youth. 

Regardless of where products like e-cigarettes fall on the tobacco product risk spectrum, the law is clear that before marketing tobacco products for reduced risk, companies must demonstrate with scientific evidence that their specific product does in fact pose less risk or is less harmful, the FDA said. 

“Juul has ignored the law, and very concerningly, has made some of these statements in school to our nation’s youth,” acting FDA Commissioner Ned Sharpless said in a statement.

“In addition, we’re troubled about several issues related to Juul's outreach and marketing practices that came to light in a recent Congressional hearing. We will continue to scrutinize tobacco product marketing and take action as appropriate to ensure that the public is not misled into believing a certain product has been proven less risky or less harmful." 

A Juul Labs spokesperson told Benzinga on Monday that the company is reviewing the FDA letters and will fully cooperate. 

The FDA has put the industry on notice and warns if the rise in youth e-cigarette use continues — especially through the use of flavors that appeal to kids — the regulator will take even more aggressive action.

Altria has a 35% stake in Juul.

Altria stock was trading up by 0.39% at $44.03 at the time of publication Monday. The stock has a 52-week high of $66.04 and a 52-week low of $42.20.

Related Links:

Tobacco Stocks React As FDA Investigates Reports Of Seizures After Vaping

Altria Group Reports Q2 Earnings Beat

Photo courtesy of Juul Labs. 

Posted-In: e-cigarette JUUL vape VapingGovernment News Regulations Best of Benzinga

 

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