June 21, 2024 • 27min

The Vapes of Wrath

Planet Money

This episode explores the rise of e-cigarettes, particularly the Juul device, and how it ignited a public health crisis around youth vaping that regulators struggled to address. It's a collaboration with the new podcast series "Backfired: the Vaping Wars" and features reporting from journalists Leon Neyfakh and Ariel Pardas.

The Vapes of Wrath

0:00

-0:00

Key Takeaways

The rise of e-cigarettes, particularly the Juul device, created a public health crisis around youth vaping that regulators struggled to address
Juul was able to rapidly grow its market share due to a regulatory gray area that allowed it to advertise and sell flavored products, unlike traditional tobacco companies
When the FDA and White House tried to crack down on youth vaping by banning flavored e-cigarettes, it led to an explosion of new, unregulated disposable vape products that were even more appealing to teens
The story of Juul highlights the challenges regulators face in trying to control the spread of new technologies - by the time they act, the market has often already shifted in unpredictable ways

Introduction

This episode explores the rise of e-cigarettes, particularly the Juul device, and how it ignited a public health crisis around youth vaping that regulators struggled to address. It's a collaboration with the new podcast series "Backfired: the Vaping Wars" and features reporting from journalists Leon Neyfakh and Ariel Pardas.

Topics Discussed

The White House Meeting on Vaping (3:17)

In late 2019, President Trump convened a meeting at the White House to address concerns about the "epidemic" of youth vaping, particularly around the Juul device
The meeting quickly devolved into a "screaming match" between two factions - those who saw vaping as a scourge that was addicting a new generation, and those who viewed it as a harm reduction tool to help adult smokers quit
Trump was "sobered" by the inability of the stakeholders to find a clear solution, highlighting the complexity of the issue

The Rise of Juul (6:17)

Juul was founded by two Stanford design students, James Monsees and Adam Bowen, who wanted to create an e-cigarette that could satisfy smokers' cravings while being healthier
When Juul launched in 2015, e-cigarettes existed in a regulatory gray area - the rules governing traditional tobacco products did not explicitly apply
This allowed Juul to advertise and sell flavored products, unlike tobacco companies, which helped fuel its rapid growth and popularity, especially among teens

Juul's Marketing Tactics (9:56)

Juul employed "viral marketing" tactics, including throwing parties and giving out free samples to young, influential people like Tabby Wakes, who then introduced the device to their social networks
This helped Juul go from selling 2 million units in 2016 to 16 million in 2017, becoming a ubiquitous presence in high schools across the country

The Regulatory Crackdown (12:48)

As Juul's popularity among teens became apparent, parents and anti-tobacco activists began calling for government action
In 2018, a CDC survey showed a 76% increase in youth e-cigarette use, prompting the FDA to declare an "epidemic" and vow to crack down on flavored products
Juul responded by voluntarily removing most of its flavored pods from retail stores, but then shocked regulators by taking a $12.8 billion investment from tobacco giant Altria

The Flavor Ban and Unintended Consequences (18:05)

In early 2020, the Trump administration announced a partial ban on flavored e-cigarette cartridges, targeting Juul specifically
However, the policy left a loophole for disposable vape products, leading to an explosion of new, unregulated brands offering an even wider array of kid-friendly flavors
The FDA found itself in a "nightmarish game of whack-a-mole," unable to keep up with the nimble, overseas-based companies flooding the market with these illegal disposable vapes

Lessons and Takeaways (27:43)

The Juul story highlights the challenges regulators face in trying to control the spread of new technologies - by the time they act, the market has often already shifted in unpredictable ways
Regulators must balance being too restrictive, which risks depriving consumers of potentially beneficial products, and being too lenient, which can lead to unintended consequences
The rapid adoption of Juul demonstrates how quickly new technologies can become mainstream, outpacing the ability of lawmakers and regulators to respond effectively

Conclusion

The rise and spread of e-cigarettes, particularly the Juul device, created a public health crisis that regulators struggled to address. Juul's ability to rapidly grow its market share was enabled by a regulatory gray area that allowed it to advertise and sell flavored products. When the government finally stepped in with a partial flavor ban, it led to an explosion of new, unregulated disposable vape products that were even more appealing to teens. This story highlights the challenges regulators face in trying to control the spread of new technologies, as the market often shifts in unpredictable ways by the time they act. It's a cautionary tale about the need for more nimble and proactive regulatory approaches to emerging industries and products.