FDA May Ban Juul E-Cigarettes As Soon As Wednesday, Report Says

Breaking Business FDA May Ban Juul E-Cigarettes As Soon As Wednesday, Report Says Madeline Halpert Forbes Staff New! Follow this author to improve your content experience. Got it! Jun 22, 2022, 11:26am EDT | Share to Facebook Share to Twitter Share to Linkedin Topline The Federal Drug Administration will bar Juul Labs’ e-cigarettes from remaining on the market and could unveil the decision as soon as Wednesday, the Wall Street Journal reported , citing sources familiar with the discussions, in a move that would upend the vaping startup, which has faced a host of lawsuits, layoffs and shrinking sales in recent years. A man exhaling smoke from an electronic cigarette is shown.

AFP via Getty Images Key Facts The news comes almost two years after the FDA asked Juul and other e-cigarette companies to submit applications to keep their products on the market. It also comes after the agency last year put off a September deadline to decide whether Juul’s menthol and tobacco-flavored products provide enough health benefits as alternatives to traditional cigarettes to warrant remaining on the market. The company may appeal the decision, challenge it in court or submit a modified application for the products, the Journal reported.

Juul and the FDA did not respond to requests for comment from Forbes. Key Background The move comes three years after Juul—in an effort to remake its public image after being blamed for causing a spike in underage vaping—stopped selling certain flavors of e-cigarettes, including sweet and fruity products, and backed off its marketing. Critics of the company, including major health organizations such as the American Heart Association and the American Lung Association, have argued the startup targeted youth and adolescents with marketing tactics that suggested the products were less harmful than traditional cigarettes.

Juul—which at one point controlled more than 70% of the U. S. vapor market—had been allowed to sell only tobacco- and menthol-flavored pods after the FDA banned fruity products two years ago.

The agency chose to allow tobacco-flavored e-cigarettes from other big companies, including Reynolds American and NJOY , to remain on the market. The reviews were part of a larger effort by the FDA to increase its regulation of tobacco products after a burst of e-cigarette sales, fueled in large part by the introduction of Juul’s vaping device in 2015 that appealed to teeangers, especially those who had never smoked before. Big Number More than $33 billion.

That’s how much Altria marked down its valuation of Juul, which last raised money in 2018 at a $38 billion valuation, when the tobacco giant reported in 2020 that it believed its 35% stake in Juul was only worth $1. 6 billion. The plunge came as the FDA set its sights on tackling the youth vaping epidemic and after the company faced a host of lawsuits for its marketing strategies.

Further Reading Juul Is Fighting to Keep Its E-Cigarettes on the U. S. Market (New York Times) FDA to Order Juul E-Cigarettes off U.

S. Market (Wall Street Journal) Check out my website . Send me a secure tip .

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