Contents


    Executive Summary

    “E-cigarettes” are electronic nicotine delivery systems generally presented as a safer alternative than traditional cigarettes because they do not deliver the toxins that are present in cigarette smoke. E-cigarettes, however, deliver an aerosol that contains potentially harmful chemicals. Research is ongoing into the potential long-term health impacts, including respiratory diseases, cardiovascular issues, and complications arising from exposure to vaping-related chemicals. Different brands of e-cigarettes deliver different amounts of nicotine and potentially toxic chemicals, making consistent public health regulation difficult. Mislabeling of e-cigarette content has been an issue. Consumer confusion about the hazards of e-cigarette use is considerable, although information about the dangers of ingestion of e-cigarette liquids is widely available, as are media stories about e-cigarette units exploding and causing burns. Despite the known risks, e-cigarette use by middle school and high school age individuals has dramatically increased over the past few years.

    A 2016 regulation gave the Food and Drug Administration (FDA) authority over many aspects of e-cigarettes, including product manufacture, importation, marketing and more. The FDA continues to enforce these regulations and has increased its oversight to include new product standards, age restrictions, and stricter marketing practices to prevent youth access.

    E-cigarettes have sparked litigation by state governments against manufacturers for alleged marketing offenses. Consumers have filed class actions alleging advertising misrepresentation, although these suits have generally not been successful. Additionally, several state and municipal governments have banned the sale of e-cigarettes under specific circumstances. Insurance considerations currently involve product liability coverage, but as e-cigarette use continues to increase, other insurance implications will likely arise.

    Background

    While using an e-cigarette is often referred to as “vaping,” e-cigarettes produce an aerosol for inhalation, not a vapor. An e-cigarette delivers nicotine to the user through the heating of a liquid solution containing nicotine, flavoring, and a humectant, which produces the aerosol that the user inhales. E-cigarettes have caused considerable concern among public health officials, especially because the medical safety of the aerosolized liquid nicotine solutions has not been thoroughly tested. E-cigarettes from different manufacturers have dissimilar ingredients and hardware and deliver highly variable amounts of nicotine and other chemicals, making accurate labeling important – but labeling has proven to be unreliable. Adding to the misperceptions, studies show that adults and juveniles alike are confused about the health effects of e-cigarettes, particularly as compared to traditional cigarettes.

    The variability in e-cigarette products poses significant challenges for regulators and researchers. Unlike traditional cigarettes, which have a more uniform composition, e-cigarettes can vary greatly in their nicotine content, flavors, and the types of humectants used, such as propylene glycol or vegetable glycerin. This inconsistency can affect the amount of nicotine and other chemicals users inhale, potentially leading to different health outcomes. Moreover, the presence of other harmful substances such as heavy metals, volatile organic compounds, and certain carcinogens has been detected in some e-cigarette aerosols. The lack of standardized testing and regulation means that consumers may be unknowingly exposed to harmful substances.

    Injuries and Damages

    Recent studies have reinforced that e-cigarette use increases the likelihood that a young person will later smoke traditional cigarettes or use other nicotine-containing products. Many youthful users remain unaware of the actual contents of e-cigarettes; in fact, the majority of teen users in one survey incorrectly reported that e-cigarettes are mostly made up of flavoring. Many young users stated that they first tried e-cigarettes because the flavors were appealing.

    While e-cigarettes contain fewer toxins than combustible cigarettes, they still deliver harmful compounds. Research has linked e-cigarettes to dry mouth, respiratory infections and potential damage to lung tissue. Certain flavorings in e-cigarettes, such as diacetyl, have been found to contain respiratory irritants that can lead to conditions like bronchiolitis obliterans, commonly known as “popcorn lung”. Additionally, the risk of physical injury from defective, poorly manufactured, or improperly modified e-cigarettes continues to be a concern. There continue to be reports of e-cigarette batteries exploding, causing burns and other injuries.

    Legislation and Regulation

    In 2016, the FDA finalized a regulation providing the agency with the authority to govern e-cigarettes and any product meeting the definition of “tobacco product” under the Family Smoking Prevention and Tobacco Control Act. As of 2024, the FDA now regulates the manufacture, import, packaging, labeling, advertising, promotion, sale and distribution of e-cigarettes, including component parts. The regulation includes requirements for premarket review of e-cigarettes as new tobacco products. In order to receive marketing approval for a new product, a manufacturer must demonstrate that the marketing of the product would be “appropriate for the protection of the public health,” according to certain criteria. To date, the FDA has authorized 27 tobacco- and menthol-flavored e-cigarette products and devices. Following scientific review, these products have been found by FDA to meet the statutory public health standard.

    There are currently no federal policies restricting indoor use of e-cigarettes other than policies in individual federal buildings or governmental properties, although e-cigarette use is often prohibited in places where cigarette smoking is prohibited.

    E-cigarette companies can still advertise through traditional outlets, such as TV and radio, which are off-limits for traditional combustible cigarette manufacturers. However, the landscape has been shifting with increased scrutiny and regulatory proposals aimed at limiting youth exposure to e-cigarette advertising. E-cigarette makers have capitalized on the appeal of their many kid-friendly flavors, whereas combustible cigarettes may only be flavored with menthol, a rule intended to reduce their appeal to young people. The appeal of kid friendly flavors remains a critical issue, leading to recent actions such as flavor bans in several states and localities. The FDA has also been more aggressive in targeting flavored e-cigarette products to curb their appeal to young people.

    In August 2016, the FDA issued rules for all forms of advertising – including radio, TV and online marketing – to cover all electronic nicotine delivery products, including e-cigarettes. The rules mandate that ads cannot represent that the product is less harmful than other tobacco products and may not target individuals under age 18. Beginning in May 2018, ads had to include a warning that the product contains nicotine, an addictive chemical.

    Liability and Insurance

    Several insurers offer limited product liability coverage for e-cigarettes. The areas of concern for insurers include allegations of contamination of the included e-liquids, exploding batteries, or the inclusion of substances not listed on the label. Recent incidents have heightened scrutiny, leading insurers to become even more cautious. Those willing to provide coverage often impose stringent exclusions or endorsements, such as an “absolute health hazard exclusion”, specific tobacco and carcinogenic exclusions, and now, emerging exclusions related to new synthetic substances and additives. Additionally, insurers are closely monitoring regulatory changes and legal precedents, which could further influence their willingness and terms to provide coverage.

    Litigation

    In recent years, litigation related to e-cigarettes has surged, reflecting growing concerns over their safety and health impacts. Juul Labs, Inc., a dominant force in the vaping industry, has borne the brunt of the increased litigation. The company has been embroiled in numerous legal challenges, culminating in the FDA’s order to cease selling its products in 2022 (although the decision was temporarily halted later that year pending an appeal and recently rescinded). The lawsuits against Juul primarily focus on deceptive marketing practices, failure to warn consumers about the risks, and targeting underage users.

    Juul has faced thousands of lawsuits alleging a range of misconduct. Major settlements have been reached, including a $462 million agreement with six states and DC in April 2023, and a $255 million class-action settlement in January 2023 for deceptive marketing practices. The company also tentatively agreed to a $438 million settlement in September 2022 to resolve investigations by nearly three dozen states regarding its marketing strategies. These settlements highlight the widespread legal repercussions Juul has faced, addressing claims from state governments, school districts, and individual consumers who argue the company’s products led to significant health issues and addiction.

    Furthermore, the broader vaping industry has seen regulatory challenges and litigation related to advertising practices, product safety, and addiction. Government agencies and public health advocates have raised concerns about the marketing tactics of e-cigarette companies, arguing they have contributed to the rising use of vaping among youth and misled consumers about the risks involved. These legal battles underscore ongoing debates about the regulation of e-cigarettes and the responsibilities of manufacturers to provide accurate information about their products' health impacts.
    California has been concerned for some time about e-cigarettes. In 2010, the California Attorney General pursued two e-cigarette companies in Alameda Superior Court, alleging that they targeted minors in their marketing and misled consumers. [People v. Smoking Everywhere, Inc. No. RG10493637 and People v. Sottera, Inc. No. RG10528622]. Both companies settled, agreeing to certain restricted marketing terms.

    E-cigarettes have been the subject of administrative actions. On September 12, 2018, the FDA published a press release addressing the epidemic of youth e-cigarette use, referencing an historic action against retailers and major manufacturers for their roles in perpetuating youth access to e-cigarettes. In a large coordinated enforcement effort, the agency issued more than 1,000 warning letters and civil money penalty complaints (fines) to retailers who illegally sold e-cigarette products to minors. The FDA’s actions signaled that the agency intends to take new and significant steps to address e-cigarettes.

    Future Outlook

    Although e-cigarettes seem to be gaining popularity over the past few years, the direction they take from now on as a product depends in significant part on the results of future research as to their safety, and on aggressive public education. Large Tobacco companies have diversified into e-cigarette manufacturing, and there continues to be multiple manufacturers and retailers for various e-cigarette brands. Regulations, particularly as to marketing, continue to be developed and will be of increasing importance to liability insurers.

    In the News

    2024

    2023

    • Juul to pay additional $7.8M to North Carolina in vaping agreement - WECT Staff, WECT (12/07/2023)
      North Carolina is set to receive an additional $7.8M from Juul in addition to the $40M that Juul already owes to the state, an announcement from Attorney General Josh Stein states.
    • Altria and Philip Morris settle Harris County vaping lawsuit - Nicole Hensley, Houston Chronicle (11/02/2023)
      Altria and Philip Morris pay $7 million to settle Harris County vaping lawsuit. Harris County will receive $7 million from a settlement with tobacco companies over deceptive marketing of electronic cigarettes to children following a years-long lawsuit, the county's attorney office said Wednesday.
    • Local school districts settle in mass-action vape lawsuit, receiving payouts - Elena Perry, The Spokeman-Review (10/13/2023)
      More local school districts have determined how much money they will receive from a class-action lawsuit settlement against vape manufacturer Juul Inc. and tobacco producer and Juul investor Altria Group Inc. alleging the companies intentionally marketed addictive vape products to underage users.
    • School board accepts second settlement from e-cigarettes lawsuits - Kim Grizzard, The Daily Reflector (09/16/2023)
      Pitt County Schools has agreed to a second legal settlement over electronic cigarettes’ role in what has been called an epidemic of vaping in schools. Following a closed-session discussion on Monday, the Board of Education voted unanimously to accept a $174,904 settlement from Altria.
    • Man injured by exploding vape wins $2.3 million in Missouri lawsuit, documents show - Mitchell Willetts, The Kansas City Star (09/12/2023)
      A Missouri man injured by an exploding vape recently won more than $2.3 million in a lawsuit against the company that supplied the device’s battery, court documents show.
    • CCSD will consider $4.4M settlement over student vape pens - Julie Wootton-Greener, Las Vegas Review-Journal (09/11/2023)
      The Clark County School Board will consider Thursday accepting a $4.4 million settlement offer with tobacco company Altria over student vape pen use. About 30 percent of the settlement amount will go toward attorney fees, leaving the Clark County School District with an estimated $3.1 million.
    • Juul Says It's Seeking FDA OK For New E-Cig Device - Emily Field, Law360 (07/19/2023)
      Juul Labs Inc. said Wednesday that it had submitted an application for a new e-cigarette product with age verification features to the U.S. Food and Drug Administration while it awaits word from the agency on whether the company's current vaping devices will be allowed to remain on the market.
    • Altria to pay $235M in Juul-related settlement - Jessica Loder, C-Store Dive (05/12/2023)
      Tobacco giant Altria has announced it will pay $235 million to settle at least 6,000 Juul-related lawsuits both federally and in individual states pending court approval, according to a Wednesday press release.
    • Minnesota is latest to settle with e-cigarette maker Juul - Steve Karnowski, The Associated Press (04/17/2023)
      Minnesota announced a settlement Monday in its lawsuit against Juul Labs and tobacco giant Altria — the first of thousands of cases against the e-cigarette maker to reach trial — just ahead of closing arguments. It comes only days after Juul announced its biggest settlement ever over the way it marketed its highly addictive products.
    • Juul Labs agrees to pay $462 million settlement to 6 states - Karen Matthews, The Associated Press (04/12/2023)
      Electronic cigarette-maker Juul Labs Inc. will pay $462 million to six states and the District of Columbia, marking the largest settlement the company has reached so far for its role in the youth vaping surge, the attorneys general in several states announced Wednesday.
    • Juul settles lawsuit with West Virginia for $7.9 million - Ramishah Maruf, CNN (04/10/2023)
      West Virginia has settled a lawsuit with e-cigarette maker Juul Labs for a total of $7.9 million, the state’s attorney general announced Monday. The company was accused of unfair, deceptive acts or practices in the advertising and marketing of Juul products in the state, specifically targeting teenagers.
    • At trial, Minnesota says e-cigarette maker Juul targets kids - Steve Karnowski, The Associated Press (03/28/2023)
      Minnesota Attorney General Keith Ellison personally opened his state’s case against Juul Labs on Tuesday, accusing the e-cigarette maker of using “slick products, clever ads and attractive flavors” to hook children on nicotine as the first of thousands of cases against the company reached trial. Minnesota is seeking more than $100 million in damages, accusing Washington, D.C.-based Juul of unlawfully targeting young people to get a new generation addicted to nicotine.
    • Juul e-cigarette company settles $23 million lawsuit with city of Chicago over marketing vapes to minors - Hank Sanders, The Chicago Tribune (03/10/2023)
      The city of Chicago has reached a $23.8 million settlement with Juul Labs over claims that the e-cigarette company aimed its vaping products toward an underage market.
    • Harris County reaches $20M settlement with e-cigarette company - Jen Rice, Houston Chronicle (02/23/2023)
      Harris County has reached a $20 million settlement of its lawsuit against e-cigarette manufacturer JUUL Labs after arguing the company deceptively marketed its products to children, the county attorney's office announced Wednesday.
    • U.S. judge grants preliminary approval to Juul consumer settlement - Reuters, Reuters (01/23/2023)
      Juul Labs Inc on Friday secured preliminary court approval of a $255 million settlement resolving claims by consumers that it deceptively marketed e-cigarettes, as the company seeks to resolve thousands of lawsuits.
    • Attorney General Paxton enters settlement with JUUL for over $43 million - Zachary Yanes, KCEN (01/04/2023)
      Attorney General Ken Paxton announces that a settlement worth $43.3 million from JUUL Labs is being reached in Texas state court on Wednesday, Jan. 4. This settlement is a piece of the $434.9 million settlement between JUUL Labs and 33 other states in the US for marketing and advertising to the youth.

    2022

    • Juul to pay $38M in settlement for targeting Pennsylvania youth - CBS News, CBS News (12/12/2022)
      Juul will pay $38 million in a settlement with Pennsylvania after the attorney general's office said it targeted teenagers and deceived consumers about e-cigarette safety.
    • U.S. Supreme Court lets California ban flavored tobacco products - Nate Raymond, Reuters (12/12/2022)
      The U.S. Supreme Court on Monday cleared the way for California to enforce a voter-approved ban in America's most-populous state on flavored tobacco products, rejecting R.J. Reynolds Tobacco Company's bid to block it on the grounds that the policy conflicted with federal law.
    • Juul reaches settlements covering thousands of lawsuits - Michelle Chapman and Matthew Perrone, The Associated Press (12/08/2022)
      Embattled vaping company Juul Labs has reached settlements covering thousands of lawsuits over its e-cigarettes, which in recent years became a scourge in schools and communities nationwide. Financial terms of the settlement were not disclosed, but Juul said that it has secured an equity investment to fund it.
    • OCSD joins national lawsuit against Juul Labs - Eddie Velazquez, Oswego County News Now (11/04/2022)
      The Oswego City School District is joining a national lawsuit against popular electronic cigarette manufacturer Juul Labs, Inc., citing a “dramatic increase of the use and abuse of e-cigarettes and vaping devices among high school and middle school students in recent years.”
    • DOJ files multiple lawsuits to stop the sale of unauthorized vape products - Brad Matthews, The Washington Times (10/19/2022)
      The Justice Department filed injunctions against six companies on behalf of the Food and Drug Administration to stop the sale of unauthorized vaping products.
    • Portland school district sues Juul, claiming e-cigarettes are damaging student health - Maxine Bernstein, The Oregonian (10/04/2022)
      Portland Public Schools has become the latest school district to sue the e-cigarette company Juul Labs Inc., alleging the company’s marketing of the addictive product to teenagers has driven up illicit substance abuse in the city’s schools.
    • Maine opts out of $440M multistate settlement with Juul - The Associated Press, The Associated Press (09/24/2022)
      Maine has opted out of a $440 million multistate settlement with electronic cigarette maker Juul Labs in objection to certain conditions.
    • Juul Agrees To Pay $438 Mn In US Over Marketing Vapes To Youth - Agence France Presse, Barron's (09/06/2022)
      Juul Labs will pay $438.5 million to settle a probe by 34 US states that found the vaping company marketed to underage smokers, state officials announced Tuesday.
    • Juul to pay $439 million in settlement over marketing to teens - Lateshia Beachum & Laurie McGinley , The Washington Post (09/06/2022)
      E-cigarette company Juul, which at the height of its success dominated the market with its sweet flavors, has agreed to pay $438.5 million in a settlement with 33 states and one territory over marketing its product to teens.
    • New 'candy' e-cigs catch fire after U.S. regulators stamp out Juul's flavors - Chris Kirkham et al, Reuters (08/16/2022)
      Since 2016, the U.S. Food and Drug Administration has sought to crack down on fruity, sweet-flavored e-cigarettes that hook teenagers on nicotine. But at least 20 brands continue to sell China-made disposable devices with kid-friendly flavors such as "peach blueberry candy" and “pineapple strawnana" at liquor stores, smoke shops and convenience stores in the United States, Reuters has found.
    • Woman alleges severe burns from e-cigarette battery explosion - The Madison County Record, The Madison County Record (08/12/2022)
      A woman claims she suffered severe burns when an e-cigarette battery exploded in her pocket. Samantha Harvell filed the complaint on Aug. 9 in the Madison County Circuit Court against Mystic Vapes Inc. The suit was filed through attorney Matthew Chapman of Becker Schroader & Chapman PC in Granite City.
    • FDA temporarily suspends order banning Juul cigarettes - The Associated Press, NPR (07/06/2022)
      The Food and Drug Administration issued an administrative stay Tuesday on the order it issued last month for vaping company Juul to pull its electronic cigarettes from the market.
    • FDA Bans Juul From Selling E-Cigarettes - Jennifer Maloney, The Wall Street Journal (06/23/2022)
      Fans of Juul’s sleek vaporizers will soon have to find another way to get their nicotine fix. The Food and Drug Administration on Thursday ordered Juul Labs Inc. to halt U.S. sales of all of its e-cigarette products. The agency said retailers should remove Juul’s products from stores and consumers should seek out alternatives.
    • F.D.A. Orders Juul to Stop Selling E-Cigarettes - Matt Richtel & Andrew Jacobs, The New York Times (06/23/2022)
      The Food and Drug Administration on Thursday ordered Juul to stop selling e-cigarettes on the U.S. market, a profoundly damaging blow to a once-popular company whose brand was blamed for the teenage vaping crisis.
    • E-cig Giant Juul To Pay $22.5m In Underage Lawsuit - Agence France Presse, Barron's (04/13/2022)
      E-cigarette firm Juul has agreed to pay $22.5 million in a US lawsuit that alleged the company deliberately targeted teenagers and lied about how addictive its products are, Washington state's attorney general said Wednesday.
    • Texas School District And Former CFO Charged With Fraud From $20 Million Bond Sale - Spencer Durham, Kokomo Tribune (03/15/2022)
      Northwestern School Corporation is joining a nationwide, class-action lawsuit against electronic cigarette maker Juul. The lawsuit alleges Juul marketed its products to teens by hiring young models and advertising with flavors such as mango and other fruits. The complaint accuses Juul of taking a page from tobacco companies in how it specifically targeted young people.

    2021

    2020

    • Philly Becomes Latest City to Sue Juul Over Teen Vaping - Philadelphia, Associated Press (10/14/2020)
      Philadelphia has filed a lawsuit against Juul Labs, accusing the company of being responsible for what city health officials call an epidemic of e-cigarette use among teens and young people.
    • Illinois files lawsuit against e-cigarette maker Juice Man - Sophia Tareen , AP News (09/10/2020)
      The Illinois attorney general sued e-cigarette maker Juice Man on Thursday, alleging deceptive marketing practices aimed at enticing youth.
    • Broward school district joins lawsuit against vaping companies - Rafael Olmeda, South Florida Sun Sentinel (07/16/2020)
      Vaping companies are accused of targeting children with products designed to get them addicted to nicotine, and school districts across the country want those companies to pay the cost of educating students about the dangers they pose.
    • Massachusetts sues company over sale of flavored vapes - Staff, The Wichita Eagle (07/16/2020)
      An online e-cigarette company continued to sell flavored tobacco products to Massachusetts consumers, and failed to protect against delivery of their products to minors, in violation of state law, state Attorney General Maura Healey said in a lawsuit.
    • Natrona School District sues e-cigarette company - Seth Casper, Star-Tribune Via Wyoming News Exchange (06/21/2020)
      The Natrona County School District officially filed a lawsuit against e-cigarette giant Juul this week, alleging the company had targeted young people and had misrepresented the true potency of the devices.
    • Juul Labs sought to court AGs as teen vaping surged - Matthew Perrone, Richard Lardner, The Associated Press (03/09/2020)
      It was a blunt warning about the dangers of youth vaping: Georgia Attorney General Chris Carr announced late last month that his state had joined 38 others to investigate whether Juul Labs, the nation’s largest electronic cigarette company, promoted and sold its nicotine-heavy products to teens.
    • 39 states investigating Juul’s marketing of vaping products - CNBC (02/25/2020)
      Investigators from 39 states will look into the marketing and sales of vaping products by Juul Labs, including whether the company targeted youths and made misleading claims about nicotine content in its devices, officials announced Tuesday.
    • Pennsylvania sues Juul, demands ban on maker’s vaping products - Sarah Gantz, The Philadelphia Inquirer (02/10/2020)
      Pennsylvania has joined a growing list of states suing leading e-cigarette maker Juul Labs, whose sleek vape pens and cartridges in fruit, dessert, and candy flavors have been blamed for contributing to a sharp rise in e-cigarette use among teenagers and adolescents.
    • Davis Joint Unified School District files lawsuit against Juul over ‘e-cigarette epidemic’ - Vincent Moleski, The Sacramento Bee (01/24/2020)
      The Davis Joint Unified School District has joined a growing number of school districts across the country, filing a lawsuit Wednesday against the leading tobacco vaporizer company Juul for its role in “cultivating and fostering an e-cigarette epidemic.”

    2019

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