Juul halts flavored e-cigarette sales to retailers — for right now

The company plans to resume sales to retailers which adopt the company’s brand new age restrictions as well as also verification system. Juul can be also banning sales to anyone under 21, even in states where the legal age can be lower. Additionally, Burns said the company will more intensely police individual retailers by increasing its secret shopper visits by 500 to about 2,000 per month.

The brand new policy doesn’t go as far as expected. A person briefed on the company’s plan told CNBC last week which Juul might stop all retail sales of flavored pods. There was no mention of resuming sales at any point. which’s unclear when sales could resume.

Burns also said the company won’t sell flavored pods to retailers which aren’t legally allowed to sell them to the public, leaving the door open if federal regulators follow through on plans to restrict those sales to vape shops.

The Food as well as also Drug Administration which week plans to restrict sales of cartridge-based flavored e-cigarettes to places such as vape as well as also tobacco shops, senior administration officials have told CNBC.

Retailers which want to sell the sweeter flavors will need to comply with Juul’s brand new distribution system as well as also age restrictions. Clerks must electronically scan IDs as well as also verify consumers are older than 21, regardless of local laws. The sale quantity will also be limited to prevent bulk purchases.

The company can be also curbing some of its marketing practices, Burns said. Juul will shut down its Facebook as well as also Instagram accounts as well as also end promotional activity on Twitter, using which only for “non-promotional” communications, Burns said. The company has never used Snapchat. which will also use its YouTube account only to show former adult smokers’ testimonials. Juul already works with Instagram as well as also Facebook to scrape inappropriate content, including images as well as also videos of teenagers using its products.

Food as well as also Drug Administration Commissioner Scott Gottlieb in a tweet said “voluntary action can be no substitute for regulatory steps” the agency will soon take, yet he wants to recognize Juul’s actions as well as also encourage others to take actions to reverse youth use.

Juul can be already dominating the e-cigarette industry, just three years since its common nicotine pods hit the market. The company, valued at $16 billion, captured 75 percent of the market from the period ended Nov. 3, according to Nielsen data compiled by Wells Fargo analyst Bonnie Herzog.

yet the e-cigarette’s appeal among teenagers has undermined Juul’s success as well as also threatened its future.

After months of parents as well as also lawmakers begging the FDA to do something, Gottlieb in September ordered Juul as well as also four different e-cigarette makers to fix what he labeled “epidemic” levels of teens using e-cigarettes. He said preliminary federal data show a more than 75 percent surge in high school students regularly using e-cigarettes.

which means roughly 3 million, or about 20 percent of high school kids, are using e-cigarettes, up by 1.73 million, or 11.7 percent in last year’s National Youth Tobacco Survey. The complete data set can be likely to be published which month.

“We’re in alignment with [Gottlieb] which we need to take action as well as also we need to get which category in a better position,” Burns told CNBC in an October interview. The company declined to make Burns available for an interview Tuesday.

which week, the FDA will Discharge its own proposal, which includes restricting sales of cartridge-based flavored e-cigarettes to places such as vape as well as also tobacco shops which tend to enforce age restrictions better, senior FDA officials told CNBC last week. The agency also plans to ban online sales until manufacturers implement FDA-mandated guidelines for age verification, said the FDA officials, who asked not to be named because the proposal can be not yet public.

Some different e-cigarette makers have publicly shared their plans to cooperate with the FDA. Altria said which will voluntarily remove its MarkTen pod-based products as well as also will stop selling all flavors except for menthol or tobacco in its “cig-a-like” products until the FDA reviews as well as also approves them. The company said which also supports federal legislation to make 21 the minimum age to buy tobacco products.

Fontem Ventures, a unit of tobacco company Imperial Brands as well as also maker of blu e-cigarettes, said which will raise the minimum age requirements to buy pods on its website to 21 across the U.S. as well as also review its packaging as well as also product descriptions.

British American Tobacco, which makes Vuse e-cigarettes, will establish as well as also enforce contractual penalties for retail partners which sell tobacco products to minors, a spokesman said in an email to CNBC on Tuesday. which will create a secret shopper program to check compliance as well as also establish an enforcement monitoring program.

BAT, along with Altria as well as also Juul, said they support raising the minimum tobacco buying age to 21. Fontem Ventures said which will support raising the age for online purchases.

Japan Tobacco International, which makes Logic e-cigarettes, has not made its plan public. A spokesman did not immediately respond to CNBC’s request for comment.

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