Facing criticism over underage vaping, Juul is offering $100 million in incentives to encourage retailers to adopt its new age-verification system
By Jennifer Maloney Aug. 28, 2019 11:59 pm ET E-cigarette startup Juul Labs Inc., facing blame for a surge in teenage vaping, is offering more than $100 million in incentives to retailers to install a new electronic age-verification system intended to curb illegal sales to minors.
The Food and Drug Administration earlier this year called out retailers including Walgreens Boots Alliance Inc., Rite Aid Corp. and Walmart Inc. for illegally selling tobacco products to minors. In response, all three raised to 21 the minimum age to purchase tobacco in their stores. Walmart also stopped selling sweet and fruity e-cigarette flavors, and Rite Aid stopped selling e-cigarettes altogether.
By May 2021, Juul will stop selling through any retailer that hasn’t adopted the age-verification system, Chief Executive Kevin Burns said in an interview. The new system “basically takes the burden off the clerk,” Mr. Burns said. Juul also supports proposed federal legislation to raise the minimum age to purchase tobacco products, including e-cigarettes, to 21 years old. Eighteen states have adopted similar legislation.
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