The FDA banned the sale of e-cigarettes in the US.
After years of pressure from politicians and public health groups to regulate the segment as strictly as other tobacco products, the agency decided to do so.
Juul sought approval from the FDA for its tobacco and nicotine products. Mint- and fruit-flavored vaping products were banned by the agency in 2020 in order to cut down on teen use.
The company was dealt a blow by the decision to ban the remaining products. Regulations and a lack of consumer interest have hampered the expansion of Juul. The United States is its largest market.
There was insufficient or conflicting data about the risks of using the company's products, including whether potentially harmful chemicals could leak out of the Juul Pod.
The FDA is issuing marketing denial orders without the data needed to determine health risks.
According to the FDA, there is no evidence of an immediate risk to using the products. As a result of Thursday's decision, Juul must stop selling and distributing its products in the US.
CNBC requested a response from a representative for Juul.
British American Tobacco and NJOY won approval from the FDA for their e-cigarettes, even though the FDA rejected some of their flavors. The agency approved the tobacco-flavor products because they proved to be beneficial to adult smokers and less harmful to young people.
Nicotine use has been cut down by the FDA. Tobacco companies will be required to reduce the nicotine content in cigarettes to non-addictive levels.
The number of high school students who have used an e-cigarette in the past 30 days has gone up. Concerns about e-cigarettes were raised by an outbreak of lung disease.
The use of high school students fell last year due to regulatory scrutiny and the coronaviruses.
According to Euromonitor International, Juul had been the market leader. The company had a 54.7% share of the market.
Nicotine is delivered by e-cigarettes by Vaporizing Liquid in Cartridges or Pods. Tobacco is addictive and may have negative health effects. Nicotine can be delivered to addicted adult smokers without the health risks associated with burning tobacco, according to the manufacturers of e-cigarettes.
The Marlboro owner bought a stake in the company. The value of the investment has been slashed due to the controversy surrounding the e-cig industry. In March of this year, the value of Altria's stake in Juul was under $5 billion, an eighth of its original investment.
The FDA decision will hurt Juul's defense in the U.S. courts, as it faces lawsuits from a dozen states and Washington over allegations that it marketed its products to minor and played a major role in the vaping epidemic. It settled with Washington state for $22.50 million.
New tobacco products were regulated by the FDA in 2009. Thousands of e-cigarettes appeared on store shelves without approval from the agency, which allowed the sale of those products as it phased in standards for the burgeoning industry.
The FDA's approval process for e-cigarette company's pre market tobacco product applications was created by a court decision. Over 6 million applications from 500 companies have been reviewed by the agency and over a million applications from smaller companies have been denied for their flavors.
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