META Meta Platforms Inc

By Jennifer Maloney 

E-cigarette startup Juul Labs Inc. said it is shutting down its Facebook and Instagram accounts and curbing its use of other social media in the U.S., part of the company's response to the Food and Drug Administration's call for changes to curb underage e-cigarette use.

Sales of Juul's vaporizers and flavored nicotine liquids have surged over the past year, fueled in part by the product's popularity among teenagers and children. Its rapid growth was helped by the San Francisco company's use of social media to advertise its products as well as by user-generated posts that glamorized Juul.

"There is no question that this user-generated social media content is linked to the appeal of vaping to underage users," Juul Labs CEO Kevin Burns wrote in a blog post Tuesday.

When Juul launched in 2015, the startup was able to use marketing practices, including social media and billboard ads, that are restricted for big tobacco companies. Advertising on social media and other platforms pitched Juul as a cool lifestyle accessory with images of people in their 20s and 30s.

In addition to curbing its social media activity, Juul plans to stop selling nicotine liquids with flavors like mango, fruit and creme at bricks-and-mortar stores. It will continue to sell all its products on its website, which the company says has age-verification technology. The Wall Street Journal earlier reported on Juul's retail shift.

The moves come as the FDA prepares to announce sharp restrictions on the sale of such products, part of its effort to combat use of e-cigarettes by teens and children. The new rules would be effective immediately.

In addition to shutting down its U.S. Facebook and Instagram accounts, Mr. Burns said his company's presence on Twitter would be limited to nonpromotional communications, and that Juul would use YouTube for posting testimonials of former adult smokers who have switched to its product.

Mr. Burns said he would also ask Facebook, Instagram, Twitter and Snapchat to prohibit posts that promote underage use of e-cigarettes. Facebook Inc. and Snap Inc. didn't immediately respond to requests for comment. Twitter Inc. declined to comment.

"Our intent was never to have youth use Juul," Mr. Burns, who joined Juul about a year ago, wrote in Tuesday's blog post. "But intent is not enough, the numbers are what matter, and the numbers tell us underage use of e-cigarette products is a problem. We must solve it."

Ana Homayoun, a school consultant and author of "Social Media Wellness," said taking down social media accounts wouldn't stop the proliferation of user-generated content about Juul, and that policing posts would be difficult for social media platforms.

"It's a gray area," she said, noting that it's not always clear if a person in a photo is a minor or whether an image is targeted to young users or not.

Analysts say more than half of Juul's sales come from four flavors: mango, fruit, cucumber and creme. The company said those flavors, along with tobacco, mint and menthol, were introduced to appeal to adult smokers, but Mr. Burns said the nontraditional flavors had also become attractive to younger nonsmokers.

Juul Labs will monitor use of its products by young people in other countries and determine its social media approach on a country-by-country basis, according to a person familiar with the matter. Health officials in the U.K., for example, have said that existing regulations there have prevented uptake of Juul by teens.

Before Tuesday's announcement, Juul sought to address concerns about its U.S. marketing and underage use by strengthening age-verification tools for purchases through its website and changing its marketing to feature former smokers in their late 20s or older.

While traditional cigarette makers such Altria Group Inc. and British American Tobacco PLC also sell flavored e-cigarettes, Juul Labs has leapfrogged them in the market. Juul commands more than 75% of the $2.7 billion U.S. e-cigarette retail market, according to a Wells Fargo analysis of Nielsen data.

"While more must be achieved to fully regulate e-cigs like actual cigarettes, Juul's effort is a good step in snuffing out kid-friendly flavors," said Sen. Chuck Schumer, one of several U.S. legislators who have pressured the company to change its practices.

Juul, Altria and BAT's U.S. subsidiary, Reynolds American, now all say they would support legislation raising the minimum age to purchase any tobacco product to 21.

Reynolds has told the FDA it would stop using social media influencers to promote its products. Marlboro maker Altria said it doesn't currently use social media or influencers. Altria also has voluntarily pulled from the market its pod-style e-cigarette devices and several of its flavors.

The companies are responding to a request from FDA Commissioner Scott Gottlieb to propose steps against surging youth use of e-cigarettes. Dr. Gottlieb is expected as soon as this week to announce an immediate ban on most e-cigarette flavors in stores that don't have an area restricted to adults -- effectively removing them from most convenience stores and gas stations. He is also expected to propose a ban on traditional menthol cigarettes, a move that would take years to enact.

Write to Jennifer Maloney at jennifer.maloney@wsj.com

(END) Dow Jones Newswires

November 13, 2018 16:40 ET (21:40 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.