Altria Group loses appeal to dismiss JUUL class action proceedings in BC

Altria Group has lost an appeal seeking to challenge the territorial jurisdiction of the British Columbia courts in the JUUL e-cigarette class action.

The underlying class action lawsuit seeks damages for injuries suffered by people who used the e-cigarettes.

“The plaintiffs allege the e-cigarette devices are hazardous products but were falsely marketed as a desirable, safe and healthier alternative to smoking,” reads the civil claim. “The plaintiffs additionally allege that the defendants conspired together to addict a new generation to nicotine or, alternatively, conspired to maintain and expand the market for JUUL products using unlawful means knowing that addiction and other injuries were likely to result.”

The American tobacco corporation was brought into the action with JUUL Labs Canada and JUUL Labs USA in September 2020, a year after the original civil claim was filed.

Altria is the parent company of Marlboro, and acquired a 35% stake in JUUL in 2018 for $12.8 billion.

Court documents explain that it was alleged that JUUL and Altria “conspired” to “employ strategies perfected in the cigarette industry” to advertise and market JUUL to young people.

“It is alleged that the defendants exploited regulatory loopholes and relied on social media and other viral advertising methods to hook young people on JUUL, despite the defendants’ knowledge of the dangers associated with vaping. Altria is alleged to have provided strategies, analyses, and services to the defendants in furtherance of the conspiracy,” a judgment made yesterday week reads.

After applying to dismiss the action, a judge ruled against Altria in 2022, finding that BC courts did have jurisdiction over the action. Altria appealed the decision, claiming that the judge “failed to address evidence that was materially relevant.”

The company said the judge erred in ignoring or misconceiving evidence such as that Altria did not ship the JUUL product to Canada, nor did they send JUUL marketing materials to Canadian addresses, among other things.

The judge did not find, and the respondents do not allege, that there is a real and substantial connection because a class member may have ‘hopped the border and been influenced by Altria’s activities in the United States,” reads the appeal decision. “Rather, the judge found that the respondents established a good arguable case that Altria was a party to a conspiracy to advertise and market JUUL e-cigarettes to young people in a manner that was misleading about the health risks, including the risk of addiction.”

JUUL has been available in BC since 2018. In September 2019, Health Canada issued a warning about the potential risk of pulmonary illness associated with vaping products.

The warning was released in the wake of an influx of cases of illness and a number of deaths associated with the use of vaping products in the USA.