What have you always wondered about the economy? Tell Us

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.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.