Juul Audience examines the role of the start-up in the teenage vape epidemic



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The founders of Juul Adam Bowen and James Monsees.

Jeniece Pettitt I CNBC

The co-founder of Juul, James Monsees, defended the company at a congressional hearing Thursday, during which legislators questioned him about the company's role in funding a company. epidemic "of girl.

The subcommittee on economic policy and consumer policy of the House Committee on Reform, Advertising, Design, Flavors, Awareness Raising and Health Claims was auditioned as part of the of a two-part hearing titled "Examining Juul's Role in the Young People's Nicotine Epidemic". Thursday's hearing marks the first time lawmakers have toasted Juul executives.

Monsees told the committee that the company "never wished that non-nicotine users, and certainly not minors," use its products. He acknowledged federal data showing that millions of high school students were starting to run out of steam as Juul products became more popular.

Monsees tried to distance Juul from Big Tobacco, who sold 35% of his company to Marlboro cigarette manufacturer Altria.

"In simple terms, Juul Labs is not a big tobacco," he said. "We are here to eliminate his product, the cigarette."

Representative Debbie Wbaderman Schultz, D-Fla., Asked Monsees about this relationship, asking if Juul considered himself a big smoker because of it.

"I see the big mainstream tobacco companies as a major investor in our society," said Monsees, to whom Schultz responded, "actions speak louder than words."

Committee Chairperson, Representative Raja Krishnamoorthi, D-Ill., Presented images comparing the Marlboro branding for cigarettes with Juul's design of the nicotine capsule. He insisted Monsees on an agreement between Juul and Philip Morris USA in 2015 about its design, claiming that it had deliberately reproduced the popular brand Marlboro.

"I deny that you are comparing here, with all due respect, Mr. President, you are comparing a package to a piece of equipment," said Monsees in response to a question about denying that the initial design of Juul's capsule resembled the Marlboro design. "There was never any intention, the last thing we wanted was to confuse any big tobacco company."

Lawmakers criticized Juul's fruity flavors, which some say mask the nicotine's tartness and appeal to children. Monsees defended the company's tastes by baderting that they were helping adult smokers quit smoking. Juul removed almost all of its retail aromas last year under pressure from the Food and Drug Administration.

On the first day of the hearings, tobacco advocates told lawmakers that Juul, the maker of the market-leading electronic cigarette, had become ubiquitous among teenagers. Professor Robert Jackler, of Stanford, has posted Juul commercials featuring bright colors and attractive, youthful designs.

The Democrats have relied on Juul for designing an elegant e-cigarette that is easy to hide from parents and teachers. They also criticized the fruity aromas like mango and cream.

The Republican members of the committee seemed more sympathetic to Juul, reminding their colleagues that millions of Americans smoke and struggle to quit.

Last year, nearly 21% of American high school students – about 3 million teenagers – were trapped, according to data from a federal poll. Critics say Juul targeted miners and provoked what regulators call an "epidemic". Juul says his products are for adult smokers who want to quit, not children.

Juul's CEO is excused during an interview with CNBC following a recent documentary titled "Vaporized: America's E-cigarette Addition". Carl Quintanilla of CNBC asked Kevin Burns of Juul what he would say to a parent with a child dependent on Juul.

"First of all, I would tell them I'm sorry their child is using the product," Burns said. "This is not meant for them.I hope nothing we did did they like.As a parent of a 16 year old, I am sorry for them, and I have empathy for them, what are the challenges they are going through. "

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