Juul E-Cigs Face FTC Scrutiny
Sinking almost $13 billion into the leading electronic cigarette manufacturer Juul Labs was almost a no-brainer for Altria (NYSE: MO) -- sales were surging, and Juul had a virtual lock on the market with a 75% share.
Yet federal data suggests that the dominance might have been achieved on the backs of teenagers, and the Federal Trade Commission is now looking into whether Juul improperly targeted them by using youthful models in its advertising. And coming after the Food & Drug Administration crackdown on e-cigs over teen use, suddenly the 35% stake Altria bought in the e-cig maker is looking instead like a really bad decision.
Image source: Getty Images.
Source Fool.com
