Juul Labs has commenced distributing substantial payouts to consumers affected by its misleading advertising practices.
At a Glance
- Payouts from Juul’s $300 million class action settlement are being distributed.
- Some recipients are receiving unexpectedly large amounts, with reports of payouts over $9,000, $6,200, and $4,600.
- Larger payouts seem to be linked to individuals who submitted receipts for Juul products, reflecting high spending on vaping.
- The class action lawsuit alleged Juul misled customers about the safety and addictiveness of its products.
- The court authorized payments totaling $201.9 million for approximately 842,000 valid claims.
Juul Settlement Disbursements Begin
Juul Labs has started disbursing payments from its $300 million class action settlement, sending shockwaves through the vaping community. Some consumers are reporting unexpectedly large payouts, reaching up to $9,000. The settlement sought to compensate users who argued that Juul’s depiction of its products as safe and non-addictive was false, incurring significant financial investments on vaping devices and related paraphernalia. Documentation of purchases has proven crucial for larger settlements.
The class action suit was aimed at addressing misleading advertisements by Juul, with a focus on the alleged lack of transparency on the risks involved. Court filings reveal that $201.9 million was approved for distribution among approximately 842,000 valid claims. Many consumers feel relieved as payouts highlight the financial impact of the vaping trend, particularly for heavy users who backed their claims with receipts.
Details of the Settlement
The settlement covers purchases made before December 7th, 2022. Juul agreed to a $255 million payout, while Altria, a significant investor in the company, agreed to contribute $45 million, rounding out the settlement. Those who could provide documentation showing extensive purchases are seeing higher returns, while others receive smaller amounts. These payments underscore the class action’s claims that consumers were misled about the safety and addictiveness of the products.
“As noted in a legal filing, the court authorized payments totaling $201.9 million for around 842,000 valid claims,” The Verge reported.
Large investments in vaping were encouraged by Juul’s marketing strategies, leading to the lawsuit. According to the suit, many customers claimed they wouldn’t have spent as much if they’d been aware of the dangers. The settlement marks a pivotal point in consumer advocacy, aiming to inform future regulations and marketing strategies within the vaping industry.
Is it about time these companies were taken down…or is this an infringement on the rights of businesses and consumers?
Discuss!