Business | Vaping vaped?

America’s teenage juuling craze attracts regulatory ire

Juul makes concessions ahead of expected new rules from the FDA

AMERICA’S FLOURISHING e-cigarette industry is braced. Scott Gottlieb, head of the Food and Drug Administration (FDA), a regulatory agency, has made it clear that he holds the sector responsible for an “epidemic” of youthful vaping. Manufacturers, he tweeted not long ago, have no idea how much they sell to teenagers: “We’re finding out for them.” As The Economist went to press, the FDA was expected to announce restrictions on the sale of vaping products in an effort to combat under-age use.

One company in particular is in its cross-hairs: Juul, based in San Francisco. FDA staff even turned up unannounced at its headquarters in September and carted off more than 1,000 pages of documents on the firm’s sales and marketing practices. Its growth has been spectacular. Sales increased from 2.2m devices in 2016 to 16.2m last year. It has captured the largest share of America’s e-cigarette market—around 75%—and in its last round of fundraising was valued at $15bn. Its sleek products are popular with teenagers: youngsters often pose with them on social media.

This article appeared in the Business section of the print edition under the headline "Vaping vaped?"

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