Juul replaces its CEO and tries to make nice with the FDA

Sabri Ben-Achour Sep 25, 2019
HTML EMBED:
COPY
Justin Sullivan/Getty Images

Juul replaces its CEO and tries to make nice with the FDA

Sabri Ben-Achour Sep 25, 2019
Justin Sullivan/Getty Images
HTML EMBED:
COPY

Juul CEO Kevin Burns said Wednesday he is stepping down as head of the electronic cigarette maker as the vaping industry is facing increasing scrutiny from regulators and public health officials.

Taking over is K.C. Crosthwaite, former chief growth officer at Altria, which makes Marlboro cigarettes in the United States and which owns more than a third of Juul.

Juul also said it would stop advertising in the U.S. and won’t lobby the Food and Drug Administration on flavored e-cigarette regulation. The announcement comes a day after Massachusetts banned the sale of all vaping products for at least four months, declaring a public health emergency.

The conciliatory gestures have a strategic foundation, in that smaller competitors may not be able to survive increased regulatory attention, according to analysts. Critics say Juul’s approach mirrors that taken by tobacco companies in the past.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.