Electronic cigarette company Juul and its parent company Altria head to trial on Monday over accusations that they illegally marketed e-cigarettes to youths.
The lawsuit, filed by the state of Minnesota, alleges that Juul and Altria through its illegal practices had also got young adults addicted to tobacco.
“Juul’s e-cigarettes’ youth-focused chemical formulas, flavours, design and marketing efforts, coupled with its deceptive sales practices, have created an addiction crisis,” the state wrote in its complaint.
Minnesota became the first state to sue the company in 2019 when state attorney general Keith Ellison filed a lawsuit hinging on the “public nuisance theory”.
A public nuisance theory allows for companies to be sued if conduct interferes with the rights of the public, such as a health epidemic. It is the same theory that 46 states cited when they sued some of the biggest tobacco companies in the 1990s, resulting in one of the largest settlements in US history.
The lawsuit states that more than one in four young adults in the state currently use e-cigarettes, twice as many as in 2014. Of this number, about 75 per cent had never smoked before and the state says the rise in e-cigarette use among youth is accelerating.
Minnesota accuses Juul of playing a “central role in the epidemic” by using the same techniques that cigarette companies did decades earlier.
The lawsuit states that the e-cigarette maker used colourful images, youth-oriented messaging and paid youth-oriented influencers to pose with product in its targeted marketing campaign.
“Defendants’ unconscionable actions are unfair, deceptive and illegal under Minnesota law. They also constitute a public nuisance that has caused great harm to Minnesota, its residents and especially to its youth,” the lawsuit reads.
Juul and Altria dispute the state's allegations that they played a role in the rapid rise of e-cigarette use among youths.
In a November motion, Juul accused Minnesota of contributing to the rise in e-cigarrete use by minors by not funding prevention efforts from tobacco settlements.
“Defendants contend that in 2018, the State received $166 million in tobacco settlement funds but did not spend any of those funds on tobacco prevention, control or treatment,” the court filing reads.
Juul also said Minnesota was aware of the growing use of youth vaping “well before Juul came on the scene”.
The trial is expected to last three weeks.
Company name: Play:Date
Launched: March 2017 on UAE Mother’s Day
Founder: Shamim Kassibawi
Based: Dubai with operations in the UAE and US
Sector: Tech
Size: 20 employees
Stage of funding: Seed
Investors: Three founders (two silent co-founders) and one venture capital fund
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
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The specs
Engine: 2.0-litre 4-cyl
Power: 153hp at 6,000rpm
Torque: 200Nm at 4,000rpm
Transmission: 6-speed auto
Price: Dh99,000
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Mica
Director: Ismael Ferroukhi
Stars: Zakaria Inan, Sabrina Ouazani
3 stars