E-cigarette retailer to pay $50 million to settle suit over marketing to teens – Lexology

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Massachusetts AG Maura Healey reached a settlement with e-cigarette retailer Eonsmoke, LLC and related individuals (collectively, “Eonsmoke”) to resolve allegations that Eonsmoke’s marketing and advertising targeted youths in violation of the Massachusetts Consumer Protection Act.

The amended complaint alleged, among other things, that Eonsmoke’s social media campaigns were designed to attract minors to its vaping products—including by using references to youth popular culture and endorsements from influencers—and that its marketing content mislead consumers by omitting or minimizing the fact that vaping products contain nicotine. Eonsmoke also allegedly failed to conduct age verification for online purchasers at the point of sale or delivery.

Under the terms of the proposed consent judgment, the corporate defendant will pay $50 million to the state and is permanently enjoined from marketing or selling tobacco products in Massachusetts, and the individual defendants will collectively pay $750,000, and will be required to obtain authorization from the FDA and give notice to the AG’s office prior to engaging in any tobacco-product-related commercial activity.

As previously reported, in August 2020, Arizona AG Mark Brnovich obtained a $22.5 million default judgment against Eonsmoke for illegally marketing vaping products to minors in violation of the Arizona Consumer Fraud Act. The default judgment permanently enjoined Eonsmoke from advertising on social media through posts that may be accessible to minors, marketing or selling to minors, or marketing or selling any nicotine products not approved by the FDA in Arizona, among other things.

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