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Juul, Philip Morris USA sued for marketing e-cigarettes to minors

Juul Labs Inc. and Philip Morris USA Inc. are facing legal charges for using "fraudulent and deceptive" youth marketing practices that allegedly violate racketeering laws.

In a 44-page complaint filed Aug. 19 at the U.S. District Court for the Northern District of Illinois, 19-year-old Christian Foss said he has been addicted to Juul e-cigarettes since he was 16 and said he was unaware at the time that the Juul contained more nicotine than a cigarette. He said he now suffers from exasperated asthma.

Foss also blamed Juul, Philip Morris USA and Altria for the e-cigarette "epidemic" in the U.S., saying the companies "prey on youth for financial gain" by mimicking big tobacco companies' past marketing practices.

Altria Group Inc., the parent company of Philip Morris USA, was also named in the complaint.

Juul is facing the same allegations in North Carolina and Florida. North Carolina Attorney General Josh Stein said in May that "Juul's business practices are not only reckless, they're illegal ... We cannot allow another generation of young people to become addicted to nicotine."

Sought for comment, a Juul spokesperson told S&P Global Market Intelligence in an email that its products have always been intended only as an alternative for cigarette smokers.

"We have never marketed to youth and do not want any non-nicotine users to try our products," the spokesperson said.

He added that the company supports the Tobacco 21 legislation, and that it already stopped the sale of non-tobacco and non-menthol based flavored JUULpods to its traditional retail store partners. In addition, it has enhanced its online age-verification process, strengthened its retailer compliance program, and shut down its Facebook and Instagram accounts while working to remove inappropriate social media content generated by other people on those platforms.

The Juul spokesman said Foss' claims, as well as similar allegations that the company is contesting in Florida, are without merit.

Philip Morris and Altria could not be reached for comment after business hours.

The lawsuit comes as the U.S. Food and Drug Administration was ordered to implement a deadline for cigarette companies to submit applications to sell e-cigarettes. In San Francisco, companies are no longer allowed to sell and distribute e-cigarettes that have not undergone premarket review by the FDA.

In September 2018, the FDA cracked down on the sale of flavored e-cigarettes to minors by 1,300 retailers.