The embattled American vape company Juul has “supported” one of the Indian companies fighting the government’s e-cigarette ban, the Bureau of Investigative Journalism can reveal.
Juul, which sells sleek e-cigarettes and flavoured nicotine “pods” that have become a craze among American teenagers, was planning to launch in India before the government banned e-cigarettes over fears about youth vaping.
Juul has confirmed to TBIJ that it provided “financial assistance” to Plume Vapours in the past. Plume Vapors had filed legal action against the Indian government’s vape ban in September. Juul maintains that despite this funding, they were not actually themselves part of the recent challenge to the Indian government on the e-cigarette ban.
But in the last many months, Juul had set up an office in Delhi, hired executives from big companies like Mastercard, Uber and KPMG. Juul sought meetings with the government to lobby over the benefits of e-cigarettes. It also hired PR companies like SPAG Asia; thinktanks like Chase India and vaping organisation like Trends to seed the media with messages about the benefits of e-cigarettes. These companies were contacted for comment but declined to respond.
Juul’s rise was hampered when the central Indian government banned vapes a few months ago, over concerns over the risks of e-cigarettes and similar products. Soon Plume Vapours and Woke Vapours, local e-cigarette importing companies, filed petitions against the ban. Two Juul officials reportedly sat beside Plume’s founder when the case was filed at a Calcutta court in October. Defending the Indian government’s ban, the Indian solicitor general Aman Lekhi told the court this was a “proxy case for Juul”. In a statement to TBIJ, Juul said: “We did not provide financial assistance to Woke Vapours. We have supported Plume Vapours in the past, but we are not part of the legal case and proceedings.”
Despite the ban, Juul products are still available in India in the black market. As recently as October, The Bureau’s reporter sourced a store that would deliver Juul e-cigarettes and flavoured pods to the customer.
Juul has now launched in 20 countries outside the US, including Canada, Russia and much of Europe, but has plans to open in more markets across Europe, the Middle East and Asia-Pacific, and has advertised for jobs and lobbied governments in South America. As it expands, the company has spent millions of dollars lobbying politicians in an attempt to pre-empt or roll back relevant regulations on products in several different countries.
The Bureau of Investigative Journalism can reveal Juul has met politicians, regulators and officials to lobby on vaping rules, putting forward health claims it cannot legally make in the US. It has also launched glossy marketing campaigns that attempt to portray the company as a responsible alternative to smoking – a far cry from the adverts that first landed the brand in hot water in the US.
The company has come under intense pressure in its home market and is facing hundreds of lawsuits as well as state and federal investigations into claims its early advertising hooked a generation of teenagers on nicotine.
Despite the mounting criticism in the US – including a raid by the Food and Drugs Administration on Juul’s offices – investor presentations show that Altria is confident international revenues can offset the predicted slump in US growth. It hopes Juul’s global sales will match domestic ones within four years.
Juul is requesting private meetings with ministers and ambassadors across the world to promote its e-cigarettes, influence countries’ vaping laws and stop taxes being slapped on its products. Lobbyists have suggested Juul devices can help people quit nicotine altogether, a claim the company would be banned from making in the US, according to transcripts of meetings seen by the Bureau.
Its lobbying offensive even includes offering to help governments write e-cigarette rules, despite the fact that tobacco companies are banned from interfering with public health policy under an international treaty.
Juul said it wants to work with regulators and policymakers to provide “an industry point of view on regulations”.
Experts are worried other countries could face their own teen vaping “epidemics” if Juul is not adequately regulated as it expands.
“Cigarettes are not cool in most communities. But Juul is cool with youth in a number of communities,” said Dr Vinayak Prasad, head of tobacco control for the World Health Organisation (WHO). “That’s a hugely powerful strategy for the tobacco and related industries, to let these products get in and capture significant market share, getting 6-8% of the young people addicted to nicotine. That’s a huge market for the future.
“Apart from the known harmful effects of nicotine on the developing brain, nicotine is addictive and could lead people, particularly young people, to take up more harmful forms of nicotine or tobacco consumption.”
A recent wave of mysterious lung illnesses, causing dozens of deaths and thousands of hospitalisations in the US, has compounded Juul’s troubles, although most of the cases were linked to black market products and not Juul devices.
However, the cases have re-ignited fears over the safety of e-cigarettes and a public health debate in which the benefits of switching smokers to a less harmful product are pitted against the risk that non-smoking teens take up vaping.
“The iPhone of e-cigarettes”
Juul was launched by Pax Labs in 2015, and within three years was America’s most popular vape. Dubbed “the iPhone of e-cigarettes”, it combined slick design with enticing flavours like “cool cucumber” and “creme brulée”.
Its first advertising campaign, Vaporized, featured young models posing and dancing against brightly coloured backgrounds. Its ads appeared on huge screens in New York’s Times Square and page spreads in Vice. It threw yacht parties, hosted rooftop cinema clubs and held concerts. The brand even funded summer camps for children as young as eight and went into schools, advertising e-cigarettes as “totally safe”.
The devices, which could be used discreetly and without releasing much vapour, surged in popularity. High school students bragged of taking puffs during lessons without anyone noticing. A language evolved among teenagers: “ghost ripping” meant taking a discreet drag; “Juuling” became a verb. On YouTube and TikTok, teens shared tips on blowing rings and shapes with vapour and decorating their Juuls with stickers.
Smoking rates in America fell sharply from 2013, with e-cigarettes like Juul contributing to the decline. Yet vaping has been accused of creating a new public health problem: addictions among non-smoking teenagers. In 2011, 16% of high school students regularly smoked and just over 1% vaped; the number of smokers fell to 8% in 2018, but the number vaping soared to almost 21% – more than had smoked before e-cigarettes took off. The FDA declared it an “epidemic” and said Juul was responsible.
Juul said: “We have never marketed to youth and do not want any non-nicotine users to try our products.”
Juul has been hit with hundreds of lawsuits in which Americans claim they were not warned about the potential dangers of vaping, or that the products contained nicotine. Juul disputes this. Some allege they have suffered respiratory issues, seizures, strokes, mental health and behavioural problems as a result of their addiction to Juuling. Lisa Vail, from Florida, told the Bureau she believes her 18-year-old son Daniel died from respiratory problems due to a heavy Juul addiction.
The company has until May next year to submit an application to the FDA to continue selling its products. It will need to prove they are “appropriate for the protection of public health”.
A host of cities and states have already tried to ban vapes like Juul or flavoured nicotine, including a blanket ban in its home city, San Francisco. As it fought these measures, Juul’s bill for lobbying in Washington soared from $120,000 in 2017 to more than $3m in the year so far.
Elsewhere, it gave nearly $19m to support PropC, a ballot measure to overturn San Francisco’s vape ban, which was unsuccessful. It set up The Switch Network, recruiting members of the public to contact state and local politicians to promote vaping. Critics accused it of “astroturfing”, dressing up a well-funded lobbying campaign as a grassroots movement.
Stefanie Miller, an investment adviser who specialises in regulatory risks, said the backlash against Juul in the US will severely constrict its American market. “I would be very concerned if they weren’t simultaneously trying to grow in other markets,” she said.
Altria told investors it expects hardly any earnings from Juul this year as it expands abroad. Juul has launched in 21 countries outside the US, including Canada, Russia and much of Europe, but has plans to open in more markets across Europe, the Middle East and Asia-Pacific, and has advertised for jobs and lobbied governments in South America.
Amid the backlash at home, the company made extensive efforts to show it has changed and suspended all “active” lobbying in the US – but the Bureau uncovered a very different picture across the world.
Rewriting the rules
For decades tobacco companies lied about the lethal effects of their products and tried to subvert government policies that would harm their profits. In 2003 a landmark international treaty from the World Health Organisation was ratified by more than 180 countries. One key clause asks governments to protect public health policies from the vested interests of tobacco and e-cigarette companies, limiting interactions and avoiding partnerships.
Yet the Bureau has found concerns that Juul is seeking to shape how countries write the rules that will govern its products, in violation of the treaty.
In a private meeting with a government minister in Vietnam in August this year, lobbyists said Juul was working with a “number of ministries” formulating the country’s new decree on vaping. They offered to consult with the Ministry of Health on the new law, according to a transcript of the meeting seen by the Bureau. Vietnam is a signatory of the WHO treaty. Juul told the Bureau the interaction did not violate the treaty.
“Juul clearly has a systematic global strategy to meet with government officials in private behind closed doors,” said Matt Myers, president of the Campaign for Tobacco Free Kids. He added that in his opinion the strategy violated the WHO treaty and repeated methods the tobacco industry has used to undermine reasonable regulation. “[It] is exactly what the tobacco industry did: replace good science and good evidence with well-paid lobbying and PR firms which operate in secrecy.”
Juul lobbyists have also been telling officials the company’s products can help people quit smoking, a claim the company cannot make in America because the FDA has not approved e-cigarettes for smoking cessation. To do so, the FDA would have to review the evidence, only some of which backs the claim; other studies have shown people continue to smoke and vape.
“When Juul tells government officials outside the United States that its products have been shown to help people quit using nicotine altogether it is inconsistent with the evidence, it is inconsistent with their internal documents, and it reflects a willingness to say things that they know aren’t true,” Myers said.
In the meeting in Vietnam a Juul lobbyist claimed its products could help wean people off nicotine entirely. He said: “What you can do, is when someone transits from a cigarette to Juul you can eliminate the combustion and you can offer them lower strength pods over time […] Over time with our technology we can then address the second phase and migrate people down nicotine to zero consumption.”
The lobbyist added that the company is looking to explore whether vitamins could be vaped as a more effective way to get them into the bloodstream, which concerns experts who say there have been no long-term studies on the safety of absorbing nutrients through the lungs.
An ambassador from a southern African country, who wanted to remain anonymous, told the Bureau that Juul lobbyists gave him the same pitch. He said: “They said they had success stories of people heavily addicted to smoking who switched to Juul and then quit nicotine altogether.”
The lobbying is as persistent as it is pervasive. Juul approached the Mexican government repeatedly, but its representatives were told they would get no further meetings, as there are strict controls on ministers’ contact with tobacco companies.
In Indonesia, campaigners are concerned about Juul’s rise. At Cilandak Town Square, a shopping centre in Jakarta, the Juul shop – its largest in Asia – sits near a Baskin Robbins and a Starbucks. Experts fear the brand is targeting young people.
Dr Rafendi Djamin, of the Indonesian National Civil Society Coalition on Tobacco Control said that the company was aggressively expanding, while e-cigarette regulations had been in limbo for two years. He said: “It has set up kiosks in places that teenagers hang out.” He fears a rise in teen vaping on top of the country’s soaring teen smoking rate. “Vaping in public has become stylish for young people. They idolise vaping.”
Move fast and break things
Juul has been fighting restrictions on its products since its global expansion began. Its first international market was in Israel, where it launched in May 2018. Within three months, it had been banned by the government because officials believed Juul’s stronger nicotine pods were “a grave risk to public health”. Juul launched legal action, with the case to be heard this month, and began a pro-vaping PR campaign.
After launching in the Philippines in June this year, Juul is now fighting the government’s proposal to raise taxes on e-cigarettes. Juul’s stronger 5% nicotine pods, which are banned in the EU, would be badly hit.
During hearings in the Philippine senate in September, Kenneth Bishop, President of Juul Labs Asia-Pacific, claimed that Juul’s products should be taxed less because they were less harmful. He also told legislators that the company was now acting responsibly. He said: “We have done some things that we are not proud of in the past but we have taken aggressive and industry leading actions to mitigate any risks of exposing our products to youth or appealing to youth.”
Yet, fearing a surge of vaping-related illnesses as the US has seen, the Philippines’ Department of Health has now asked all hospitals to formally report any cases.
Shane MacGuill, an analyst at Euromonitor, told the Bureau Juul’s rapid expansion and “move fast and break things” mentality could harm its perception among regulators and the public.
“I think people in general don’t really feel comfortable with where [Juul] think nicotine should be used and shouldn’t,” he said, “They sort of drove a cart and horses through all of that. And I think it’s really a time for reflection for them.”
This piece was first published by The Bureau of Investigative Journalism (TBIJ). TBIJ has lightly edited this for an Indian audience and has been republished by The Wire.