FDA to command Juul stop selling e-cigarettes in the US very soon

The Food and Drug Administration (FDA) is reportedly preparing to order Juul Labs from selling its e-cigarettes in the US.

1 minute & 49 seconds read time

Recent reports indicate that the Food and Drug Administration (FDA) is preparing to shut down e-cigarette sales from Juul across the United States.

FDA to command Juul stop selling e-cigarettes in the US very soon 02

The Wall Street Journal (WSJ) reported that the FDA is preparing to order Juul Labs to remove its e-cigarette products from the US following a two-year investigation by the regulator of the benefits of Juul's e-cigarettes and if they are effective at getting smokers to quit. The investigation also took into account health impacts, and explored if Juul's e-cigarette products provide benefits that outweigh the health damage.

According to people close to the coming decision by the FDA, the regulator is expected to announce a decision as early as next week. Following the report by the WSJ, Altria Group, a tobacco giant that owns 35% of Juul Labs, saw its stock fall by 8.5%. Notably, the FDA declined to comment on the report from the WSJ, and Juul, along with Altria, didn't respond to any questions for comment.

FDA to command Juul stop selling e-cigarettes in the US very soon 25

Furthermore, the Food and Drug Administration cleared a Juul rival for sale in the US market - British American Tobacco's Vuse Solo e-cigarettes and its tobacco-flavored pods. This clearance by the FDA was the first vapor product to receive approval from the regulator.

Additionally, Altria's investment of $1.6 billion into Juul Labs as of March, paired with the company facing pressure from regulators regarding its profits, has led analysts such as Rae Maile to believe Altria has made a mistake.

"The investment in Juul was always a mistake, the company paying top dollar for a business which was already clearly [on] the wrong side of the regulators," said Rae Maile, an analyst at Panmure Gordon.

Notably, Juul Labs will have the option of appealing the decision made by the FDA, and if it does the case will go to court.

For more information on this story, check out this link here.

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Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science, space, and artificial intelligence news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms. Instead of typical FPS, Jak holds a very special spot in his heart for RTS games.

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