FTC Probes E-Cigarette Sales and Promotional Methods -- 2nd Update

By Dave Sebastian 

The Federal Trade Commission said Thursday it is seeking information from six e-cigarette companies, including Juul Labs Inc., to study sales, advertising and promotional methods of their products as health authorities investigate a rash of illnesses and deaths linked to vaping.

Other companies the FTC ordered details from are Altria Group Inc.'s vaping business Nu Mark LLC, R.J. Reynolds Vapor Co., Fontem U.S. Inc., Logic Technology Development LLC and NJOY LLC.

The study, for which the commission has ordered the companies to submit relevant details for the years 2015 to 2018 by Jan. 2, 2020, would add to other FTC studies on cigarettes and smokeless tobacco products, the FTC said.

The Wall Street Journal reported in August that the FTC had opened an investigation of Juul's marketing practices.

The FTC is seeking information such as annual sales, giveaways of e-cigarette products, characteristics of the e-cigarette products such as product flavors, advertising expenses for e-cigarette promotion and college campus programs.

"The goal is to assist the Commission, policy makers, and the public to better understand the rapidly growing e-cigarette market," the FTC said.

Juul, Fontem and Logic Technology Development said they would cooperate with the information request.

"We will fully cooperate and are focused on earning the trust of regulators, policy makers and other stakeholders," a Juul spokesperson said.

R.J. Reynolds said it has received and is reviewing the FTC's order.

Altria's Nu Mark, which discontinued its products in December 2018, said it would comply with the FTC order. NJOY didn't immediately respond to requests for comment.

Health authorities have urged people to stop using electronic cigarettes and other vaping products while they investigate deaths from a mysterious illness that federal officials said may have affected more than 450 users of the devices around the U.S.

State governments also have moved to suspend vaping-product sales, prompting pushback from vape-shop owners.

(END) Dow Jones Newswires

October 03, 2019 14:53 ET (18:53 GMT)

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