FTC Summons Five E-Cigarette Firms, Including Juul, To Turn Over Their Sale Reports

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FTC Summons Five E-Cigarette Firms, Including Juul, To Turn Over Their Sale Reports

Important points

  • The Federal Trade Commission (FTC) has summoned five e-cigarette companies that include big names like Juul and R.J. Reynolds to for-see the information on 2019-2020 sales (including the commercial and promotional data).
  • The FTC’s primary focus is to break down the marketing strategies on such addictive products.
  • Reports that FTC expects to include all the yearly sales data and promotional information such as marketing scale through social media and college campus programs, focusing on promoting through influencers.

FTC Summons Five E-Cigarette Firms, Including Juul, To Turn Over Their Sale Reports

Showing up their sales report will help FTC analyze the consumption rate and production rate of cigarettes among the public. This FTC can play an essential factor in understanding a leap towards major health diseases caused during the act.

FTC Summons Five E-Cigarette Firms, Including Juul, To Turn Over Their Sale Reports

The Federal Trade Commission said that it has requested five e-cigarette makers provide the service with sales and advertising data for the business years 2019 and 2020. The five significant companies summoned were Juul, R.J. Reynolds Vapor Co., Fontem, Logic Technology Development, and NJOY, as cited by the FTC.

This so-called investigation was not the first time FTC has asked e-cigarette makers to present with an annual report. In October 2019, the FTC called on major e-cigarette suppliers to provide similar marketing data from 2015 to 2018. Their main focus was to survey and gather information on an annual sales report, giveaways, the flavors used, and advertising programs conducted through social media or on a college campus. This report even included their plans on advertising through influencers and via affiliate plans.

The age of the majorly targeted audience is the youth.’ Juul, an e-cigarette manufacturer, has been under the spotlight for its marketing practices. This heated even more when approximately 39 states looked into the company’s sales and marketing report last year. It was clear that they focused more on their sales than considering a ‘limitation’ for the product. Many teenagers filed lawsuits against Juul’s product as they claimed to be addicted to the products that they manufactured.

This came into consideration by Juul management, as they decided to cease all their product advertising and marketing through different mediums like broadcasting, print, and digital channels all over the U.S., Which came into action at the end of 2019.

In general, e-cigarettes are manufactured by electronic devices that vaporize a fluid containing nicotine and flavor component. The nicotine present causes addiction and flavors to provide variety to the consumer.

Juul, R.K. Reynolds Vapor Company, and NJOY did not respond to the CNBC officials’ questions.

“We have been working with the FTC on our response and look move to share it with them on or before the deadline,” said Kelly Cushman, a spokeswoman for Fontem’s parent ITG Brands, an email.

This case was handled with ease by Logic e-cigarette manufacturers, a unit of Japan Tobacco. They responded by stating, ‘Logic get hold of regulatory compliance seriously and, as a responsible company, commonly receives requests for information and cooperates with government agencies’ by their spokeswoman Michele Maron.

Further investigation may have some solution to the excessive effects on youngsters’ health and people who have turned addicts.

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