RICHMOND, Va. (WAVY) — Virginia is set to receive $16.61 million following an agreement between JUUL and 33 other states and territories.

Overall, the states will receive $438.5 million following the agreement in principle with JUUL Labs which resolves a two-year bipartisan investigation into the e-cigarette manufacturer’s marketing and sales practices.

Virginia will receive $16.61 million over six to ten years.

The following states joined Virginia in the agreement: Alabama, Arkansas, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Kansas, Kentucky, Maryland, Maine, Mississippi, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, Nevada, Ohio, Oklahoma, Oregon, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Wisconsin, and Wyoming. The investigation was led by Connecticut, Texas, and Oregon.

Per the agreement, JUUL is required to comply with a series of strict injunctive terms severely limiting their marketing and sales practices.

The investigation found that JUUL relentlessly marketed to underage users with launch parties, advertisements using young and trendy-looking models, social media posts and free samples.

JUUL also manipulated the chemical composition of its product to make the vapor less harsh on the throats of the young and inexperienced users.

Consumers were also misled to believe that consuming one JUUL pod was the equivalent of smoking one pack of combustible cigarettes. The company also misrepresented that its product was a smoking cessation device without FDA approval to make such claims.

As part of the agreement, JUUL has agreed to refrain from:

  • Youth marketing
  • Funding education programs
  • Depicting persons under age 35 in any marketing
  • Use of cartoons
  • Paid product placement
  • Sale of brand name merchandise
  • Sale of flavors not approved by FDA
  • Allowing access to websites without age verification on landing page
  • Representations about nicotine not approved by FDA
  • Misleading representations about nicotine content
  • Sponsorships/naming rights
  • Advertising in outlets unless 85 percent audience is adult
  • Advertising on billboards
  • Public transportation advertising
  • Social media advertising (other than testimonials by individuals over the age of 35, with no health claims)
  • Use of paid influencers
  • Direct-to-consumer ads unless age-verified, and
  • Free samples

The agreement also includes sales and distribution restrictions, including where the product may be displayed and accessed in stores, online sales limits, retail sales limits, age verification on all sales, and a retail compliance check protocol.