Federal Trade Commission to Investigate Marketing Practices of Juul

E-cigarette maker Juul may be in hot water as a report from The Wall Street Journal has said that the Federal Trade Commission is investigating the company’s marketing practices.

According to the WSJ report, the FTC started to investigate the company before Altria took a stake in it. Altria is one of the world’s largest producers and marketers of tobacco and now has a 35% stake in Juul.

The FTC began its investigation last September.

Citing sources who are familiar with the situation, the WSJ has reported that the FTC is investigating whether Juul used deceptive marketing and targeted minors.

Juul has not commented on the investigation but has said that it fully cooperates and is “transparent with any government agency or regulator who have interest in our category.”

The company said that it has “never marketed to youth” and that its 2015 ad campaign, known as “Vaporized,” “was intended for adults in the 25-34 year-old demographic and lasted for six months.”

“If one views the sales and revenue data, there is no evidence that it drove use, youth or otherwise,” the company explained. “Nonetheless, we regret that the campaign was executed in a way that was perceived as appealing to minors.”

The FDA had also launched its own investigation into the company’s marketing practices in 2018.

Disclaimer: We have no position in Altria Group Inc. (NYSE: MO) and have not been compensated for this article.