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We evolved lungs
to breathe air.
2
00:00:16,099 --> 00:00:20,145
The lungs have about
a football field of surface.
3
00:00:20,770 --> 00:00:23,398
They're huge, if you take
all the little bubbles and lay them out.
4
00:00:23,481 --> 00:00:26,943
If you could
look at a lung, it's very pink and lacey.
5
00:00:27,485 --> 00:00:31,448
And doctors say the only thing
that should be in your lungs is air.
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What goes into your lungs
often stays in your lungs.
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The lungs are fragile,
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{\an8}and so anything that gets inhaled
besides air is worrisome.
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The most addictive way
to deliver a drug is to inhale it.
10
00:00:55,263 --> 00:00:59,017
It goes to your brain in a few seconds,
and you get a big hit.
11
00:01:01,436 --> 00:01:03,688
The diabolical genius
of this industry
12
00:01:03,772 --> 00:01:07,358
is turning what essentially
is a form of enslavement
13
00:01:07,442 --> 00:01:11,654
to a product
as addictive as heroin or cocaine...
14
00:01:14,407 --> 00:01:16,242
into a form of liberty.
15
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It was the July 4th weekend, 2019.
16
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We thought it was going to be
a pretty quiet... a pretty quiet weekend.
17
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I take a deep breath,
and it hurts.
18
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It was so painful to speak,
or even breathe.
19
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I feel like I'm dying.
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Three more kids came in.
It just kept building.
21
00:01:42,060 --> 00:01:46,439
There were hospitals across the country
that were reporting this.
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{\an8}Three young people in Illinois,
and 11 teens and young adults in Wisconsin
23
00:01:50,735 --> 00:01:53,363
{\an8}have been hospitalized
with severe lung disease.
24
00:01:53,446 --> 00:01:57,367
What all had in common
was that they had been vaping.
25
00:02:01,579 --> 00:02:03,706
- It's quite a story...
- $38 billion valuation...
26
00:02:03,790 --> 00:02:08,503
...$17 billion stake in San Francisco
e-cigarette maker JUUL.
27
00:02:15,426 --> 00:02:18,555
Christmas came early
for employees of JUUL,
28
00:02:18,638 --> 00:02:20,056
the popular e-cigarette maker.
29
00:02:20,140 --> 00:02:23,017
They got a $2 billion bonus
coming their way.
30
00:02:23,101 --> 00:02:25,687
It'll be split among
the company's 1,500 employees,
31
00:02:25,770 --> 00:02:31,234
which breaks down
to about $1.3 million each.
32
00:02:31,317 --> 00:02:33,862
- Wow!
- Secret Santa around the office.
33
00:02:33,945 --> 00:02:35,989
- That's right.
- $1.3 million, incredible.
34
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I was woken up by my mother.
35
00:02:39,534 --> 00:02:41,995
"I just got a call from Bobby Levine."
36
00:02:42,829 --> 00:02:45,498
She saw on the Today show
37
00:02:45,582 --> 00:02:50,670
{\an8}every single employee at JUUL
is now a multi-millionaire.
38
00:02:51,504 --> 00:02:54,299
So I look on the internet,
I turn on the TV.
39
00:02:54,382 --> 00:02:59,596
Sure enough, all of JUUL's employees
woke up this morning millionaires.
40
00:02:59,679 --> 00:03:04,225
Jumping up and down, like,
"It happened! I'm a millionaire!"
41
00:03:10,148 --> 00:03:13,693
{\an8}You are, according to valuation
of your company, a billionaire.
42
00:03:13,776 --> 00:03:15,778
{\an8}And that's the club you want to be in
43
00:03:15,862 --> 00:03:19,115
{\an8}because that is truly rarefied air,
even in the tech industry.
44
00:03:21,784 --> 00:03:24,287
We all piled into
this big lunchroom.
45
00:03:24,370 --> 00:03:26,748
There was a lot of excitement.
46
00:03:26,831 --> 00:03:30,168
Kevin, Adam, and James
announced the Altria investment,
47
00:03:30,251 --> 00:03:34,672
{\an8}and they were of the mindset
that this was a huge step for the company.
48
00:03:34,756 --> 00:03:38,092
{\an8}When they were breaking down how
the bonus was structured, they were like,
49
00:03:38,176 --> 00:03:40,803
{\an8}"Everyone will get this much money."
I'm like, "What?"
50
00:03:41,930 --> 00:03:43,806
So Kevin went through the numbers,
51
00:03:43,890 --> 00:03:48,144
{\an8}and then I went back to my desk
and I figured it out. It's like, "Whoa."
52
00:03:51,481 --> 00:03:55,026
{\an8}And, of course, Adam and James
became billionaires overnight.
53
00:03:57,070 --> 00:04:00,323
It was an interesting room to be in.
There was a lot of celebration.
54
00:04:02,033 --> 00:04:05,787
But it was definitely
a divisive sort of announcement.
55
00:04:05,870 --> 00:04:07,455
There were some people
56
00:04:07,538 --> 00:04:11,000
that raised their hand
at the all-hands and said, "Hey...
57
00:04:12,293 --> 00:04:15,838
are you telling us that
we're now owned by Big Tobacco?"
58
00:04:18,967 --> 00:04:20,385
It was shocking.
59
00:04:20,468 --> 00:04:22,762
{\an8}I could no longer
turn to my friends and say,
60
00:04:22,845 --> 00:04:24,347
{\an8}"No, we're not Big Tobacco."
61
00:04:25,223 --> 00:04:28,434
A lot of people thought
this was going the wrong direction.
62
00:04:28,518 --> 00:04:30,812
It didn't align with their values.
63
00:04:31,646 --> 00:04:33,356
We were anti-Big Tobacco.
64
00:04:33,439 --> 00:04:36,818
Yes, we sell nicotine products,
but we're not like them.
65
00:04:37,485 --> 00:04:39,279
We hated Big Tobacco.
66
00:04:39,362 --> 00:04:43,449
That hate was very much
a unifying part of our mission.
67
00:04:43,533 --> 00:04:45,076
{\an8}It's something that motivated us,
68
00:04:45,159 --> 00:04:48,705
{\an8}and all of a sudden it was like,
"Now we are Big Tobacco."
69
00:04:49,664 --> 00:04:55,586
{\an8}Kevin came up, and essentially he gave
a presentation to pull his team back.
70
00:04:56,754 --> 00:05:01,718
The reason why this happened is we said,
"Okay, tell you what."
71
00:05:01,801 --> 00:05:05,680
"You want to invest in our company?
You want to buy us?"
72
00:05:06,347 --> 00:05:10,476
"We'll take all the money
that it would require to buy us,
73
00:05:10,560 --> 00:05:12,228
and we're going to give you 35%."
74
00:05:12,812 --> 00:05:15,231
They were going to put
an advertisement for JUUL
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00:05:15,315 --> 00:05:19,402
inside each and every
Altria brand cigarette package.
76
00:05:20,361 --> 00:05:22,739
That's probably the best
direct-to-consumer marketing
77
00:05:22,822 --> 00:05:24,615
that we could ever get.
78
00:05:24,699 --> 00:05:28,578
Altria would provide
legal and regulatory support,
79
00:05:28,661 --> 00:05:32,040
as well as sales and marketing support.
80
00:05:32,123 --> 00:05:34,375
We were actually
taking over shelf space.
81
00:05:34,459 --> 00:05:36,878
Instead of having
eight slots of cigarettes,
82
00:05:36,961 --> 00:05:39,505
it would be 4 slots of cigarettes
and 4 slots of JUUL.
83
00:05:39,589 --> 00:05:43,509
They were gonna allow us
access to their email database.
84
00:05:43,593 --> 00:05:48,848
If you want to reach adult smokers,
who has a bigger database than Altria?
85
00:05:49,432 --> 00:05:50,975
{\an8}They wouldn't control the company,
86
00:05:51,059 --> 00:05:54,270
{\an8}so that made me feel a lot better
about the investment.
87
00:05:54,354 --> 00:05:58,399
{\an8}They were also committing, by 2050,
to get rid of combustion completely.
88
00:05:58,483 --> 00:06:01,569
{\an8}Who in their right mind
would ever agree to any of those things,
89
00:06:01,652 --> 00:06:03,404
let alone all those things?
90
00:06:03,488 --> 00:06:05,782
Someone who knows they lost.
91
00:06:07,200 --> 00:06:09,619
The three of them
turned the tide, even for me,
92
00:06:09,702 --> 00:06:13,206
in a way that I had not anticipated
that they would.
93
00:06:13,289 --> 00:06:16,584
The way that it was positioned
was that this partnership with Altria
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00:06:16,667 --> 00:06:20,213
could help us accomplish
a huge part of our mission.
95
00:06:20,296 --> 00:06:27,053
Altria had to believe
that JUUL not only was becoming the thing,
96
00:06:27,136 --> 00:06:28,888
but that it would overtake cigarettes.
97
00:06:29,555 --> 00:06:31,766
This is them admitting defeat.
98
00:06:32,600 --> 00:06:35,770
{\an8}We had struck a blow to the Goliath.
99
00:06:35,853 --> 00:06:37,980
{\an8}They were kowtowing to us now.
100
00:06:38,564 --> 00:06:41,067
JUUL's ended cigarettes.
They're admitting it.
101
00:06:41,150 --> 00:06:43,861
"It's just a phase-out."
They're switching to us.
102
00:06:43,945 --> 00:06:46,072
That's a pretty powerful explanation
103
00:06:46,155 --> 00:06:48,658
that that sounded like
the best thing I've ever heard.
104
00:06:48,741 --> 00:06:52,120
And more than welcome, any of you,
105
00:06:52,203 --> 00:06:55,289
to send out questions, concerns,
to all of us.
106
00:06:55,373 --> 00:06:58,167
We would love to answer them personally
for all of you.
107
00:07:00,670 --> 00:07:04,674
A lot of people walked out of that meeting
not knowing what to think.
108
00:07:04,757 --> 00:07:08,344
I didn't think that I could stay,
109
00:07:08,428 --> 00:07:12,306
because if I accepted the money,
it was like blood money.
110
00:07:13,516 --> 00:07:16,769
And I thought a bit about...
111
00:07:17,603 --> 00:07:20,314
how my dad would perceive it.
112
00:07:20,398 --> 00:07:23,192
He had been a smoker my whole life,
113
00:07:23,276 --> 00:07:26,279
and he ultimately died of lung cancer.
114
00:07:28,239 --> 00:07:31,492
I essentially came to the conclusion that
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00:07:32,410 --> 00:07:37,290
if Altria is gonna help us do
what we've been trying to do anyway,
116
00:07:38,207 --> 00:07:39,500
then it's for good.
117
00:07:44,881 --> 00:07:47,216
So that was how I justified it.
118
00:07:47,300 --> 00:07:50,678
But I will say it was not an easy...
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00:07:52,054 --> 00:07:53,723
conclusion for me to come to.
120
00:07:54,348 --> 00:07:56,017
I still feel weird about it.
121
00:08:10,364 --> 00:08:12,158
When Gottlieb and I learned,
122
00:08:12,241 --> 00:08:14,887
Gottlieb being the Commissioner
of the Food and Drug Administration,
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00:08:14,911 --> 00:08:16,746
{\an8}that, unknown to us,
124
00:08:16,829 --> 00:08:22,001
{\an8}those companies were in secret
negotiations for a $12.8 billion deal,
125
00:08:22,668 --> 00:08:24,629
we were incredulous.
126
00:08:26,672 --> 00:08:31,969
{\an8}Both companies had engaged
in disingenuous behavior with us,
127
00:08:32,053 --> 00:08:33,804
{\an8}and we felt betrayed.
128
00:08:34,430 --> 00:08:36,724
It seems to Gottlieb,
JUUL and Altria
129
00:08:36,807 --> 00:08:38,643
were trying to undermine the FDA,
130
00:08:38,726 --> 00:08:41,145
{\an8}preparing to sell
even more of the vaporizer
131
00:08:41,229 --> 00:08:43,689
{\an8}that was most popular among teenagers.
132
00:08:43,773 --> 00:08:47,068
It called into question
the integrity of the individuals.
133
00:08:47,151 --> 00:08:48,945
But I've learned over time
134
00:08:49,028 --> 00:08:51,864
to be very skeptical
about what comes out of the mouths
135
00:08:51,948 --> 00:08:55,451
from anybody in the tobacco industry,
including e-cigarette manufacturers.
136
00:08:55,535 --> 00:08:59,747
For us to successfully fulfill
our mission of helping adult smokers
137
00:08:59,830 --> 00:09:03,251
we must be trusted.
And we must earn that trust.
138
00:09:03,334 --> 00:09:05,920
That starts with action, not words.
139
00:09:06,587 --> 00:09:09,423
We thank Commissioner Gottlieb
for his leadership in this area,
140
00:09:09,507 --> 00:09:11,717
and we look forward
to working with the FDA
141
00:09:11,801 --> 00:09:14,804
to solve this issue
on an industry-wide basis.
142
00:09:14,887 --> 00:09:19,267
I questioned just how genuine
any statement from the head of JUUL was
143
00:09:19,350 --> 00:09:22,144
about sharing
a common goal with regulators
144
00:09:22,228 --> 00:09:25,231
about reducing youth use
of their products.
145
00:09:28,901 --> 00:09:31,153
Big Tobacco never went away.
146
00:09:31,237 --> 00:09:32,947
They play the long game,
147
00:09:33,030 --> 00:09:36,742
and they must replenish their customers,
148
00:09:36,826 --> 00:09:40,037
{\an8}or they will put themselves
out of business.
149
00:09:40,121 --> 00:09:43,124
The parents of this country are fed up.
150
00:09:43,624 --> 00:09:46,460
You're not taking this generation.
Eff you.
151
00:09:46,544 --> 00:09:52,925
We're going to make it really hard for you
to continue addicting kids.
152
00:09:53,009 --> 00:09:55,636
{\an8}My daughter was 15
and a sophomore in high school
153
00:09:55,720 --> 00:09:58,347
{\an8}when she first tried vaping
with some girlfriends.
154
00:09:58,431 --> 00:10:03,227
{\an8}She's been addicted to the JUUL products
since she was about 13, 14 years old.
155
00:10:03,311 --> 00:10:07,189
{\an8}Please tell the FDA now is the time
to put our children's health
156
00:10:07,273 --> 00:10:09,233
{\an8}over the profits of Big Tobacco...
157
00:10:09,317 --> 00:10:11,694
{\an8}Parents were sending
thousands of letters to FDA
158
00:10:11,777 --> 00:10:15,448
saying, "Get rid of the flavors,
get rid of online sales."
159
00:10:15,531 --> 00:10:17,825
{\an8}"We want action. Go after this company."
160
00:10:17,908 --> 00:10:19,827
{\an8}We're trying to protect kids, and I think,
161
00:10:19,910 --> 00:10:23,664
{\an8}"Now we just have to get the FDA
to do that too, and we'll be all set."
162
00:10:25,082 --> 00:10:27,394
{\an8}This was becoming
an increasingly political issue,
163
00:10:27,418 --> 00:10:30,212
so Gottlieb was taking all of this heat
164
00:10:30,296 --> 00:10:34,675
for trying to implement the framework
that we'd come up with in 2017,
165
00:10:34,759 --> 00:10:38,888
where there was a place
for alternative and less harmful products.
166
00:10:39,597 --> 00:10:41,807
But then, we get this disastrous data
167
00:10:41,891 --> 00:10:44,810
on the explosion of e-cigarettes
with children and adolescents
168
00:10:44,894 --> 00:10:46,812
in 2017 and 2018.
169
00:10:46,896 --> 00:10:50,566
At some point, the youth use
of those products becomes so intolerable
170
00:10:50,650 --> 00:10:52,693
that they have no redeeming health value,
171
00:10:52,777 --> 00:10:55,863
and we'll have to sweep the market
of those products, including JUUL...
172
00:10:55,946 --> 00:10:57,782
Scott Gottlieb
changed the deadline
173
00:10:57,865 --> 00:10:58,985
for when companies like JUUL
174
00:10:59,033 --> 00:11:02,119
had to submit their
Premarket Tobacco Product Applications,
175
00:11:02,203 --> 00:11:05,373
and if they couldn't prove that JUUL
was appropriate for public health,
176
00:11:05,456 --> 00:11:07,124
it could be removed from the market,
177
00:11:07,208 --> 00:11:09,835
and the company
would have to go out of business.
178
00:11:11,879 --> 00:11:15,675
People jumped on the bandwagon
because it's Big Tobacco all over again.
179
00:11:15,758 --> 00:11:17,510
"We thought we'd eradicated this."
180
00:11:17,593 --> 00:11:20,638
I think that was the big narrative
that drew people in.
181
00:11:21,597 --> 00:11:24,392
I can see how
the way the media portrayed it,
182
00:11:24,475 --> 00:11:27,186
it was like,
"It's Big Tobacco all over again."
183
00:11:28,312 --> 00:11:30,523
{\an8}I would have conversations
with a stranger,
184
00:11:30,606 --> 00:11:33,401
and I was always worried
that if I told him I worked for JUUL,
185
00:11:33,484 --> 00:11:37,321
it'd be like, "How does it feel
working getting nicotine to kids?"
186
00:11:37,405 --> 00:11:41,367
Someone came up to me
at a party, not knowing it was me,
187
00:11:41,909 --> 00:11:46,038
like, "There are a bunch of people
from that fucked-up company JUUL here,
188
00:11:46,122 --> 00:11:49,750
that made all this money and think
they're hot shit now." And I was like...
189
00:11:51,127 --> 00:11:52,127
"Huh."
190
00:11:52,878 --> 00:11:57,174
This was misreported pretty broadly
about how much money people made.
191
00:11:57,675 --> 00:12:00,845
Somebody wrote
that when Altria invested $2 billion,
192
00:12:00,928 --> 00:12:04,223
they were splitting it among
the 1,500 employees evenly.
193
00:12:04,306 --> 00:12:07,309
So there were all these people
on LinkedIn being like...
194
00:12:07,977 --> 00:12:10,271
..."Do you need help
managing your millions?"
195
00:12:10,354 --> 00:12:11,772
And I was laughing. I was like,
196
00:12:11,856 --> 00:12:14,859
"I literally just made enough
to pay off my parking tickets."
197
00:12:18,195 --> 00:12:21,323
It was unfair
how the media was portraying JUUL.
198
00:12:22,700 --> 00:12:24,535
The marketing of
that acquisition
199
00:12:24,618 --> 00:12:25,703
could have been done better
200
00:12:25,786 --> 00:12:27,413
to portray the real benefit
201
00:12:27,496 --> 00:12:30,458
that this would allow JUUL
to reach more older smokers
202
00:12:30,541 --> 00:12:32,543
that are smoking and killing themselves,
203
00:12:33,210 --> 00:12:37,089
{\an8}and have a much more positive effect
on the health of the nation.
204
00:12:38,466 --> 00:12:42,970
The Altria deal made it even harder
to earn public trust,
205
00:12:43,053 --> 00:12:45,806
and if you lose the public's trust,
206
00:12:45,890 --> 00:12:49,059
you lose the permission to operate,
to be a business.
207
00:12:49,727 --> 00:12:53,397
It's easy to judge the company.
The mistrust is understandable.
208
00:12:53,481 --> 00:12:56,400
Big Tobacco did some
really messed-up things,
209
00:12:56,484 --> 00:12:58,694
so we're not even
starting from a good place.
210
00:12:58,778 --> 00:13:02,364
We have to try and... make up for that.
211
00:13:10,498 --> 00:13:12,500
The onus is on us.
212
00:13:12,583 --> 00:13:14,126
We better get to work.
213
00:13:16,587 --> 00:13:19,423
{\an8}There was a sense of urgency,
without a doubt.
214
00:13:19,507 --> 00:13:20,966
{\an8}They said, "We want you to be
215
00:13:21,050 --> 00:13:23,093
{\an8}the Director of Product
for Youth Prevention."
216
00:13:23,677 --> 00:13:27,389
{\an8}"If this company is going to survive,
you have to solve this."
217
00:13:27,473 --> 00:13:30,976
They wanted me to focus
on the retail end of it.
218
00:13:31,060 --> 00:13:33,270
Underage kids
going into a convenience store
219
00:13:33,354 --> 00:13:35,481
and making a purchase
without being carded.
220
00:13:35,981 --> 00:13:39,693
But as much as every retail store can say,
"Yeah, we'll make sure to card,"
221
00:13:39,777 --> 00:13:43,030
there was no technology or anything
to guarantee that would happen.
222
00:13:43,113 --> 00:13:46,200
So we built age verification technology,
223
00:13:46,283 --> 00:13:49,662
where you have to swipe a driver's license
to complete a purchase.
224
00:13:49,745 --> 00:13:52,832
JUUL was doing something
no other company was doing.
225
00:13:52,915 --> 00:13:55,543
Anheuser-Busch wasn't telling
all their retailers,
226
00:13:55,626 --> 00:13:57,294
"You have to add age verification."
227
00:13:58,504 --> 00:14:02,299
The founders and the company
truly believe that they're saving lives,
228
00:14:02,383 --> 00:14:05,261
and children getting access
to this product
229
00:14:05,344 --> 00:14:07,972
is only distracting
what the company's vision is.
230
00:14:08,681 --> 00:14:10,266
The mission was so important.
231
00:14:11,225 --> 00:14:14,562
{\an8}I was a smoker.
I knew what the product had done for me,
232
00:14:14,645 --> 00:14:16,313
{\an8}I knew what it could do for others.
233
00:14:16,939 --> 00:14:20,276
So with all the negative publicity
around JUUL
234
00:14:20,359 --> 00:14:23,696
and the perception that JUUL
was causing all of this harm,
235
00:14:23,779 --> 00:14:27,199
there was this whole group of people
that JUUL was helping.
236
00:14:27,950 --> 00:14:30,953
We started to hear from people
with real stories.
237
00:14:32,079 --> 00:14:35,499
We used that database of stories
to cast our commercials,
238
00:14:35,583 --> 00:14:37,793
and what became
the Make the Switch campaign.
239
00:14:37,877 --> 00:14:39,795
Popped a pod in it,
took a couple of puffs,
240
00:14:39,879 --> 00:14:43,424
and I was surprised
at how similar it was to a cigarette.
241
00:14:43,507 --> 00:14:46,635
I felt a sense of pride
that I was able to let go of that habit.
242
00:14:46,719 --> 00:14:50,431
{\an8}I wanted to help other people
who had similar stories as me
243
00:14:50,514 --> 00:14:51,807
{\an8}get off of cigarettes.
244
00:14:51,891 --> 00:14:54,476
We didn't pay them.
They weren't actors.
245
00:14:54,977 --> 00:14:58,564
There was this desire
to be very deliberate
246
00:14:58,647 --> 00:15:00,524
in how we portrayed ourselves.
247
00:15:03,027 --> 00:15:04,612
"Make the Switch."
248
00:15:04,695 --> 00:15:07,740
As a marketer,
it's the simplest message there is.
249
00:15:09,909 --> 00:15:13,078
If they thought that by Make the Switch,
250
00:15:13,162 --> 00:15:16,832
they could put the toothpaste back
in the tube, they were fooling themselves.
251
00:15:17,458 --> 00:15:18,709
It was too late.
252
00:15:27,551 --> 00:15:30,763
{\an8}Millions of children
are already addicted to e-cigarettes,
253
00:15:30,846 --> 00:15:33,891
{\an8}and millions more will follow
if we don't act.
254
00:15:33,974 --> 00:15:37,311
{\an8}This is what I think sometimes
you see happen with companies.
255
00:15:37,394 --> 00:15:41,148
{\an8}If they perceive
that public officials are timid,
256
00:15:41,857 --> 00:15:43,150
they take advantage of it.
257
00:15:43,233 --> 00:15:44,944
From my perspective,
258
00:15:45,027 --> 00:15:48,030
JUUL was preying
on the timidity of the FDA,
259
00:15:48,113 --> 00:15:51,909
and as a result, it was left
to San Francisco to do their job for them.
260
00:15:51,992 --> 00:15:54,912
{\an8}We're introducing today
groundbreaking legislation
261
00:15:54,995 --> 00:15:56,246
{\an8}at the Board of Supervisors
262
00:15:56,330 --> 00:15:58,958
{\an8}that would prohibit the sale
in San Francisco
263
00:15:59,041 --> 00:16:04,463
{\an8}of any e-cigarette that has not undergone
FDA pre-market review...
264
00:16:04,546 --> 00:16:08,092
{\an8}That was a bill that
Parents Against Vaping fought hard for,
265
00:16:08,175 --> 00:16:09,718
{\an8}and that was a huge victory.
266
00:16:09,802 --> 00:16:13,013
There's no reason that our kids
should be used as human guinea pigs
267
00:16:13,097 --> 00:16:14,848
for the e-cigarette experiment.
268
00:16:14,932 --> 00:16:17,893
Banning vaping in San Francisco's
a fucking travesty.
269
00:16:17,977 --> 00:16:21,480
This product helped people
like myself get off of cigarettes,
270
00:16:21,563 --> 00:16:24,942
but suddenly,
it's more difficult to purchase.
271
00:16:25,025 --> 00:16:29,071
Meanwhile, the thing that I've wanted
to quit for so long is readily available.
272
00:16:29,154 --> 00:16:31,991
It... seems kind of ass-backwards.
273
00:16:32,074 --> 00:16:36,370
{\an8}Interesting that their hometown
just banned the product.
274
00:16:36,453 --> 00:16:41,583
{\an8}It is fundamentally retaliatory,
short-sighted, and political.
275
00:16:42,918 --> 00:16:46,046
Some say that this is
Nanny State-like and puritanical.
276
00:16:46,130 --> 00:16:47,464
I don't agree with that.
277
00:16:47,548 --> 00:16:50,718
You just have to have been approved,
as required under the law,
278
00:16:50,801 --> 00:16:53,345
before you sell in San Francisco.
Pretty simple.
279
00:16:56,140 --> 00:16:58,100
Now the sides were drawn.
280
00:16:59,727 --> 00:17:03,355
{\an8}It was the good guy crusaders,
the liberal democrats,
281
00:17:03,439 --> 00:17:04,898
against Big Tobacco.
282
00:17:04,982 --> 00:17:09,611
Kids in nice prep schools
in New York, Silicon Valley,
283
00:17:09,695 --> 00:17:13,449
have taken up these e-cigarettes,
and there was kind of a moral panic.
284
00:17:13,532 --> 00:17:17,453
These are parents with money,
these are parents with influence,
285
00:17:17,536 --> 00:17:20,039
these are parents
with political connections.
286
00:17:20,122 --> 00:17:23,375
{\an8}- Thank you for having me.
- We saw each other this weekend.
287
00:17:23,459 --> 00:17:26,545
{\an8}I told Dorian I would cover it,
and here we are...
288
00:17:26,628 --> 00:17:28,714
{\an8}It's a classic example
289
00:17:28,797 --> 00:17:32,342
of a narrow interest group
using their political clout
290
00:17:32,426 --> 00:17:35,804
in a way that does not benefit
the broader good.
291
00:17:37,806 --> 00:17:42,561
{\an8}People say it was only rich white kids.
I don't think that's entirely accurate.
292
00:17:42,644 --> 00:17:45,773
We represent millions of parents
293
00:17:45,856 --> 00:17:50,027
whose lives have been upended
by the youth vaping epidemic.
294
00:17:50,110 --> 00:17:55,074
And there's only anecdotal evidence
that adults are helped by e-cigarettes,
295
00:17:55,157 --> 00:17:57,659
but there's proven evidence
that kids are harmed.
296
00:17:58,202 --> 00:18:01,914
When you know someone is harming children,
how do you look away?
297
00:18:05,167 --> 00:18:10,923
The summer of 2019,
I saw JUUL marketing everywhere.
298
00:18:11,632 --> 00:18:14,551
{\an8}I also started hearing
from my own children about this.
299
00:18:15,427 --> 00:18:17,012
We were in a youth vaping epidemic.
300
00:18:17,096 --> 00:18:19,681
28% of high schoolers were vaping,
301
00:18:19,765 --> 00:18:22,434
almost 11% of middle schoolers
were vaping.
302
00:18:23,060 --> 00:18:24,311
JUUL was everywhere.
303
00:18:24,978 --> 00:18:28,607
{\an8}The biggest concern
that I was hearing from parents is that
304
00:18:28,690 --> 00:18:31,485
JUUL was marketing directly to their kids.
305
00:18:32,277 --> 00:18:35,781
{\an8}We first asked JUUL for any materials
306
00:18:35,864 --> 00:18:39,034
{\an8}surrounding the sales and marketing
of these devices.
307
00:18:40,369 --> 00:18:42,454
{\an8}They basically slow-walked us.
308
00:18:43,288 --> 00:18:47,084
And then at some point,
Kevin Burns, the CEO of JUUL,
309
00:18:47,167 --> 00:18:50,337
actually tried to go over my head
to my chairman,
310
00:18:51,630 --> 00:18:55,926
and Elijah Cummings said to Mr. Burns,
311
00:18:56,009 --> 00:19:00,722
"If you fuck with my people,
I will nail you to a cross."
312
00:19:02,599 --> 00:19:06,520
JUUL, at that point,
produced 55,000 documents to us.
313
00:19:07,729 --> 00:19:10,107
And the documents were so damning
314
00:19:10,190 --> 00:19:15,320
in terms of showing exactly how
they were using social media influencers,
315
00:19:15,404 --> 00:19:18,532
and that there was no evidence
to support a lot of their claims
316
00:19:18,615 --> 00:19:23,245
that JUULs were safer
than combustible cigarettes.
317
00:19:23,328 --> 00:19:27,040
That's when we decided, "We need to bring
these folks in to explain themselves."
318
00:19:28,333 --> 00:19:32,629
{\an8}We asked for James Monsees
to actually testify
319
00:19:33,130 --> 00:19:37,426
{\an8}because we really wanted to hear
from the founder of JUUL under oath.
320
00:19:37,926 --> 00:19:41,221
{\an8}I felt badly for James
as a person and as a friend,
321
00:19:41,305 --> 00:19:44,766
{\an8}but it was time for us to be public
322
00:19:44,850 --> 00:19:48,270
in responding
to everyone's valid concerns.
323
00:19:49,521 --> 00:19:53,066
{\an8}Good afternoon. Sorry for the delay.
The subcommittee will come to order.
324
00:19:53,150 --> 00:19:57,321
The atmosphere when
James Monsees entered the room was tense.
325
00:19:57,404 --> 00:19:58,947
The room was packed.
326
00:19:59,031 --> 00:20:02,701
You had all these
anti-youth-vaping advocates.
327
00:20:02,784 --> 00:20:05,329
Mr. Monsees,
do you swear that the testimony...
328
00:20:05,412 --> 00:20:07,497
In just under 15 years,
329
00:20:07,581 --> 00:20:11,919
James had gone from a Stanford
graduate student presenting his thesis
330
00:20:12,002 --> 00:20:15,214
to defending the product
that resulted from that thesis
331
00:20:15,297 --> 00:20:16,548
in front of Congress.
332
00:20:16,632 --> 00:20:19,051
This was a high-pressure situation.
333
00:20:19,134 --> 00:20:21,678
He was fighting
for the life of his company.
334
00:20:22,888 --> 00:20:26,016
Everybody in the office
was either in a conference room
335
00:20:26,099 --> 00:20:27,017
with it on the TV,
336
00:20:27,100 --> 00:20:28,977
or on their laptops with headphones.
337
00:20:29,061 --> 00:20:31,271
You know this is going to be
a defining moment.
338
00:20:32,397 --> 00:20:33,899
{\an8}Thank you, Mr. Chairman.
339
00:20:34,983 --> 00:20:37,986
{\an8}We need to work together to make sure
340
00:20:38,070 --> 00:20:40,781
{\an8}that no underage consumers
use this product.
341
00:20:40,864 --> 00:20:45,327
{\an8}We want to get on to the business of
eliminating cigarettes and saving lives.
342
00:20:45,827 --> 00:20:49,456
He was trying to implore,
"Let's work together to figure this out."
343
00:20:49,539 --> 00:20:52,751
{\an8}And they turned around
and said, "You're a monster."
344
00:20:52,834 --> 00:20:56,838
{\an8}JUUL began developing a pod
to deliver more nicotine to the blood.
345
00:20:56,922 --> 00:20:57,923
{\an8}Is that accurate?
346
00:20:58,006 --> 00:21:01,009
{\an8}Uh... I'm not sure what you're referring to.
347
00:21:01,093 --> 00:21:03,262
{\an8}Mind-boggling
that you don't know the answer.
348
00:21:03,345 --> 00:21:05,264
{\an8}How many are available today?
349
00:21:05,931 --> 00:21:08,016
{\an8}I... I don't know...
350
00:21:08,100 --> 00:21:11,103
{\an8}If you say
you don't know something, but you do,
351
00:21:11,186 --> 00:21:12,437
{\an8}it's the same thing as a lie.
352
00:21:12,521 --> 00:21:14,815
Do you agree that the ad
conveys that your product
353
00:21:14,898 --> 00:21:16,984
can help smokers quit smoking cigarettes?
354
00:21:17,067 --> 00:21:20,612
{\an8}- This is the pattern of action...
- You try to get around FDA regulations.
355
00:21:21,280 --> 00:21:23,365
The vibe in the room
that day was clearly
356
00:21:23,448 --> 00:21:26,410
{\an8}that JUUL was responsible
for a health crisis
357
00:21:26,493 --> 00:21:28,328
{\an8}and should be held accountable for that.
358
00:21:28,912 --> 00:21:32,833
Here I was,
watching this billionaire founder
359
00:21:32,916 --> 00:21:38,338
telling the truth in some ways,
but then not being candid in other ways.
360
00:21:38,422 --> 00:21:40,632
People did not have
the stomach or appetite
361
00:21:40,716 --> 00:21:43,302
to let them continue doing
what they were doing.
362
00:21:43,385 --> 00:21:46,013
That's why you saw
so much anger at the hearing.
363
00:21:46,096 --> 00:21:48,015
I just want to tell you...
364
00:21:48,098 --> 00:21:51,977
{\an8}You, sir, are an example
to me of the worst of the Bay Area.
365
00:21:52,978 --> 00:21:55,605
{\an8}You're nothing but a marketer of a poison,
366
00:21:55,689 --> 00:21:59,067
{\an8}and your target has been young people.
I yield back.
367
00:21:59,651 --> 00:22:03,739
{\an8}I believe that it's the government's
responsibility to protect children.
368
00:22:03,822 --> 00:22:05,741
{\an8}This hearing is adjourned.
369
00:22:06,783 --> 00:22:10,704
{\an8}That's why we made it very clear to JUUL,
our kids are not for sale.
370
00:22:13,957 --> 00:22:16,335
{\an8}It's easy
for politicians to say
371
00:22:16,418 --> 00:22:19,963
{\an8}they're protecting kids
by taking on Big Tobacco.
372
00:22:20,589 --> 00:22:24,176
{\an8}But at the end of the day,
they're standing between smokers
373
00:22:24,259 --> 00:22:27,387
{\an8}and a potential
life-saving route away from smoking.
374
00:22:28,388 --> 00:22:30,140
{\an8}I don't see it as political theater,
375
00:22:30,223 --> 00:22:34,770
{\an8}I see it as the proper and judicious use
of a government organ.
376
00:22:35,354 --> 00:22:38,440
Holding liable and accountable
those who do misdeeds.
377
00:22:38,940 --> 00:22:41,818
Everyone at the company
was very focused on,
378
00:22:41,902 --> 00:22:44,279
"We need to take charge
of youth prevention."
379
00:22:44,363 --> 00:22:47,574
"We can't just let
the government figure it out."
380
00:22:48,200 --> 00:22:51,328
We are spending 80 hours a week
381
00:22:51,411 --> 00:22:55,207
doing nothing but thinking about
teen vaping and how to solve it.
382
00:22:55,290 --> 00:22:59,211
And I remember thinking,
"We can only go up from here."
383
00:23:08,387 --> 00:23:11,390
I vaped a lot.
It never left my hand.
384
00:23:11,932 --> 00:23:13,683
It showed, for sure.
385
00:23:13,767 --> 00:23:15,310
{\an8}I looked... dead,
386
00:23:15,394 --> 00:23:19,189
{\an8}and it's because I was constantly
intaking something that wasn't air.
387
00:23:19,773 --> 00:23:24,152
The end of my senior year is when
the progressive symptoms began happening.
388
00:23:24,236 --> 00:23:28,448
It was very gradual,
so I took it as, "You're just sick."
389
00:23:28,532 --> 00:23:30,325
It wasn't big until...
390
00:23:31,868 --> 00:23:33,078
every day got worse.
391
00:23:34,996 --> 00:23:38,333
The first symptom I had
was slight throat pain.
392
00:23:39,376 --> 00:23:42,379
Next day, further down to the chest,
393
00:23:42,963 --> 00:23:45,715
and it just went downhill from there.
394
00:23:45,799 --> 00:23:50,887
I was in so much pain that I had to crouch
because the deep breaths, I couldn't do.
395
00:23:52,055 --> 00:23:55,767
A step hurt to take,
and I could not eat anything.
396
00:23:56,768 --> 00:23:59,062
If I did, it would come right back up.
397
00:23:59,146 --> 00:24:02,023
I was told
I looked like a walking skeleton.
398
00:24:03,024 --> 00:24:08,780
I said to my mom, "I feel like I'm dying.
Like, genuinely, I feel like I'm dying."
399
00:24:11,158 --> 00:24:14,744
Going to the hospital
was a very big blur, but...
400
00:24:15,829 --> 00:24:22,711
I remember waking up in an ICU bed,
with my family by my side, um...
401
00:24:31,803 --> 00:24:36,433
It was just a really hard experience
to go through, you know...
402
00:24:37,517 --> 00:24:39,728
You don't know what's going on,
403
00:24:39,811 --> 00:24:43,940
and you're so sick to a point where
you're in your own little world of pain.
404
00:24:44,024 --> 00:24:46,985
And I was going through
respiratory failure,
405
00:24:47,068 --> 00:24:50,739
so I essentially could have died
in that moment.
406
00:24:53,575 --> 00:24:57,454
I was on call that weekend
at Children's Wisconsin,
407
00:24:57,537 --> 00:25:00,665
and we thought it was going to
be a pretty quiet weekend,
408
00:25:00,749 --> 00:25:04,878
{\an8}but by the time we realized we had four,
and probably five, of these kids,
409
00:25:05,462 --> 00:25:07,047
all of them with the same symptoms,
410
00:25:07,130 --> 00:25:09,966
fever, cough,
shortness of breath, and fatigue...
411
00:25:10,050 --> 00:25:12,052
this was just not coincidental.
412
00:25:12,844 --> 00:25:15,472
And when antibiotics weren't working,
then it was,
413
00:25:15,555 --> 00:25:19,100
"Let's move on to the next step
and try to figure this out."
414
00:25:19,601 --> 00:25:24,648
And what all five of the teens
had in common
415
00:25:24,731 --> 00:25:26,650
was that they had been vaping.
416
00:25:26,733 --> 00:25:29,402
A children's hospital in Wisconsin
is sounding an alarm
417
00:25:29,486 --> 00:25:31,738
about serious health problems
linked to vaping.
418
00:25:31,821 --> 00:25:36,076
Eight teenagers were admitted
just this month with serious lung damage.
419
00:25:36,159 --> 00:25:39,871
{\an8}A fourth death has been reported
from a severe lung illness
420
00:25:39,955 --> 00:25:41,164
{\an8}linked to vaping.
421
00:25:41,248 --> 00:25:42,928
Six deaths
have been confirmed
422
00:25:42,999 --> 00:25:45,001
in California, Illinois, Indiana...
423
00:25:45,085 --> 00:25:46,445
43 confirmed cases...
424
00:25:46,503 --> 00:25:48,564
69 confirmed cases
of hospitalizations...
425
00:25:48,588 --> 00:25:53,260
127 people in 15 States
are seriously ill with lung damage...
426
00:25:53,843 --> 00:25:57,097
It was eventually known
as EVALI, which stands for
427
00:25:57,180 --> 00:26:01,434
"E-cigarette or Vaping Product
Use-Associated Lung Injury."
428
00:26:02,185 --> 00:26:05,689
{\an8}This was related to vaping.
That was all we knew.
429
00:26:06,690 --> 00:26:11,152
{\an8}The CDC and others
are racing to figure out why.
430
00:26:12,153 --> 00:26:14,906
I was with my friend,
and I told her,
431
00:26:14,990 --> 00:26:17,951
{\an8}"I keep on feeling
this sharp pain in my chest."
432
00:26:18,034 --> 00:26:21,329
{\an8}It's almost like a needle,
plucking at my chest once in a while."
433
00:26:21,413 --> 00:26:23,039
We go over the children's hospital.
434
00:26:23,123 --> 00:26:25,250
I think they're going to do
an X-ray or an EKG
435
00:26:25,333 --> 00:26:27,333
and tell me,
"Everything's okay. Here's a Tylenol."
436
00:26:28,962 --> 00:26:33,174
And then a team of surgeons run into
this room, screaming at me to wake up,
437
00:26:33,258 --> 00:26:36,136
saying, "We need to rush you into surgery.
Your lung collapsed."
438
00:26:36,970 --> 00:26:38,305
I said, "Can I call my dad?"
439
00:26:38,388 --> 00:26:42,017
They said, "You can, but he's not gonna
be here in time for what we have to do."
440
00:26:43,768 --> 00:26:45,729
I hear the tube go into my chest,
441
00:26:45,812 --> 00:26:48,481
and it sounded like branches
being stepped on.
442
00:26:53,570 --> 00:26:54,570
Yeah, sorry.
443
00:27:02,245 --> 00:27:05,874
And I thought, "If I'm gonna die,
I'm gonna record everything."
444
00:27:05,957 --> 00:27:07,417
"Everyone will know how I went out."
445
00:27:10,712 --> 00:27:12,964
That's when things started to take off.
446
00:27:15,925 --> 00:27:17,260
I remember being overwhelmed
447
00:27:17,344 --> 00:27:19,971
with the amount of people
that were flooding my messages.
448
00:27:20,055 --> 00:27:22,098
I've never seen anything like it before.
449
00:27:22,182 --> 00:27:26,227
{\an8}People were sending me videos of them
destroying their vapes and JUULs.
450
00:27:26,311 --> 00:27:29,939
A lot of my friends wanted
to quit out of just being scared.
451
00:27:30,023 --> 00:27:32,025
All the headlines said
it was linked to JUUL,
452
00:27:32,108 --> 00:27:36,237
{\an8}and with so many people getting sick,
I think it really caused a panic.
453
00:27:38,948 --> 00:27:41,188
The only goal I have now
is to spread the word
454
00:27:41,242 --> 00:27:43,828
and make sure no one
has to go through this again.
455
00:27:44,537 --> 00:27:48,041
There were huge protests
outside of the office.
456
00:27:48,124 --> 00:27:49,834
That's scary as an employee
457
00:27:49,918 --> 00:27:52,420
because I didn't want
to be a part of a company
458
00:27:52,504 --> 00:27:55,382
{\an8}that had a connotation
that was associated with killing people.
459
00:27:55,465 --> 00:27:57,842
{\an8}I don't think anyone
would want to be a part of that.
460
00:27:57,926 --> 00:28:00,303
We are taking our lives back.
461
00:28:00,387 --> 00:28:04,599
I'm getting rotten eggs
thrown at me. "Yo, kid killer!"
462
00:28:04,683 --> 00:28:05,934
{\an8}I realized real fast,
463
00:28:06,017 --> 00:28:08,812
{\an8}if I go anywhere with anything
that says "JUUL,"
464
00:28:08,895 --> 00:28:11,022
{\an8}I might get beaten.
465
00:28:11,648 --> 00:28:15,568
JUUL is getting richer
while kids are getting sicker!
466
00:28:15,652 --> 00:28:17,445
{\an8}I thought that JUULing was safer
467
00:28:18,029 --> 00:28:20,532
{\an8}than smoking regular cigarettes.
I was wrong.
468
00:28:21,116 --> 00:28:24,077
It was like a wave
had swept over, and everyone was like,
469
00:28:24,160 --> 00:28:26,287
"I don't know if I want to vape anymore."
470
00:28:29,416 --> 00:28:31,459
{\an8}JUUL Labs CEO Kevin Burns.
471
00:28:31,543 --> 00:28:34,879
{\an8}He's responding to the growing number
of breathing illness cases
472
00:28:34,963 --> 00:28:36,256
{\an8}in people who vape.
473
00:28:36,339 --> 00:28:38,591
{\an8}I can't imagine we had the data to support
474
00:28:38,675 --> 00:28:42,679
{\an8}that we're selling a product that is
damaging to the American public,
475
00:28:42,762 --> 00:28:45,557
{\an8}and we had that data,
that we'd continue to sell that product.
476
00:28:45,640 --> 00:28:49,018
{\an8}I ask is because the tobacco industry
doesn't have a great track record
477
00:28:49,102 --> 00:28:52,564
{\an8}when it comes to telling the truth to
Americans about what they're selling.
478
00:28:52,647 --> 00:28:56,776
{\an8}Do you understand why people find it hard
to trust you? You also sell nicotine.
479
00:28:56,860 --> 00:28:58,236
{\an8}Sure. Sure.
480
00:28:58,319 --> 00:29:01,614
{\an8}It's a lot of association
that comes with that,
481
00:29:01,698 --> 00:29:04,492
{\an8}in terms of being in nicotine business.
I understand.
482
00:29:09,289 --> 00:29:12,542
People came to me and said,
"Robbie, could that happen to me?"
483
00:29:12,625 --> 00:29:14,210
I didn't necessarily know myself.
484
00:29:14,294 --> 00:29:16,463
JUUL was such a young product,
485
00:29:16,546 --> 00:29:21,217
we didn't have that ten-year data to say
definitively that it was not the issue.
486
00:29:26,931 --> 00:29:29,434
{\an8}...as the Centers for Disease Control
and Prevention
487
00:29:29,517 --> 00:29:32,645
{\an8}says that it has identified
a chemical of concern
488
00:29:32,729 --> 00:29:35,023
{\an8}in the deadly vaping outbreak.
489
00:29:35,106 --> 00:29:38,026
{\an8}Vitamin E acetate
may be linked to the national outbreak
490
00:29:38,109 --> 00:29:40,820
{\an8}that sickened thousands
across the United States.
491
00:29:40,904 --> 00:29:43,615
They collected all of these
bronchoscopy samples,
492
00:29:44,240 --> 00:29:47,994
and vitamin E was found
in the vast majority of them.
493
00:29:48,077 --> 00:29:51,247
It's a thicker liquid,
sort of like a mineral oil,
494
00:29:51,331 --> 00:29:55,251
which is why inhaling it
causes so many problems in the lungs.
495
00:29:55,335 --> 00:30:00,089
Vitamin E oil looks
just like THC.
496
00:30:00,173 --> 00:30:02,509
You can get it right at a drugstore.
497
00:30:02,592 --> 00:30:05,220
You can take empty,
old discarded cartridges
498
00:30:05,303 --> 00:30:07,138
and fill them with vitamin E oil,
499
00:30:07,222 --> 00:30:08,765
and say that they're THC.
500
00:30:08,848 --> 00:30:10,433
It had nothing to do with JUUL.
501
00:30:11,100 --> 00:30:15,021
For me, it didn't take very long
before JUULing got old,
502
00:30:15,104 --> 00:30:17,941
and I was like,
"Oh, let's try something different."
503
00:30:18,691 --> 00:30:21,152
THC is a whole 'nother world.
504
00:30:21,820 --> 00:30:26,157
The flavors,
the holographic designs on their boxes,
505
00:30:26,241 --> 00:30:29,744
tailoring to what we wanted to see.
Everyone had them.
506
00:30:30,328 --> 00:30:33,289
I thought to myself,
"It must be safe, right?"
507
00:30:37,085 --> 00:30:38,845
{\an8}Brothers Tyler
and Jacob Huffhines
508
00:30:38,920 --> 00:30:40,672
{\an8}sat at the same table in court Thursday,
509
00:30:40,755 --> 00:30:42,423
{\an8}charged with manufacturing
510
00:30:42,507 --> 00:30:45,760
{\an8}tens of thousands
of illegal THC vape cartridges.
511
00:30:45,844 --> 00:30:49,264
{\an8}We as a brand had problems
with counterfeit products.
512
00:30:49,347 --> 00:30:52,141
{\an8}You can take JUUL
and put any pod in it that you want.
513
00:30:52,225 --> 00:30:55,520
It's what's in the cartridge that is
what is going to cause harm to you,
514
00:30:55,603 --> 00:30:56,729
not the JUUL itself.
515
00:30:56,813 --> 00:31:00,024
{\an8}Good news for JUUL that
the scrutiny now is going to land on
516
00:31:00,108 --> 00:31:04,529
{\an8}black market THC as opposed to teens,
who are vaping from a JUUL.
517
00:31:06,072 --> 00:31:07,699
These people weren't using JUUL
518
00:31:07,782 --> 00:31:10,285
or using conventional
nicotine vaping products,
519
00:31:10,368 --> 00:31:13,329
{\an8}but that didn't get out in the media.
520
00:31:13,413 --> 00:31:18,751
{\an8}Even though this lung illness outbreak
is apparently tied to THC,
521
00:31:18,835 --> 00:31:21,963
{\an8}it doesn't matter. In people's minds,
it's all the same, it's vaping...
522
00:31:22,046 --> 00:31:25,300
{\an8}Even when it comes out that,
actually, the problem is not JUUL,
523
00:31:25,383 --> 00:31:30,513
{\an8}the narrative that JUULing is bad for you
becomes really hard to shake.
524
00:31:30,597 --> 00:31:32,640
Maybe they wouldn't
bring up JUUL's name,
525
00:31:32,724 --> 00:31:34,392
but the videos that they were using
526
00:31:34,475 --> 00:31:36,728
{\an8}and the background imagery
were all JUUL products.
527
00:31:36,811 --> 00:31:38,897
{\an8}So, psychologically, people at home
528
00:31:38,980 --> 00:31:42,817
{\an8}were connecting these
tragic circumstances to JUUL.
529
00:31:43,318 --> 00:31:45,320
{\an8}News companies
aren't going back and saying,
530
00:31:45,403 --> 00:31:48,823
"By the way, JUUL didn't cause
any of those deaths."
531
00:31:48,907 --> 00:31:51,993
Fact checks never go as viral
as the lie.
532
00:31:52,076 --> 00:31:54,078
{\an8}People read the headline, not the article,
533
00:31:54,162 --> 00:31:57,290
{\an8}and once that headline is in their mind,
that's what they'll believe.
534
00:31:57,373 --> 00:32:00,543
Being the biggest in your space
is dangerous
535
00:32:00,627 --> 00:32:04,088
{\an8}because when people need a story to tell,
they will tell it about you.
536
00:32:04,172 --> 00:32:07,926
{\an8}What we don't know may,
in fact, really hurt us...
537
00:32:08,009 --> 00:32:11,179
{\an8}What gets attention
is very much a product of the media.
538
00:32:11,262 --> 00:32:14,849
{\an8}It can create genuine concern,
it can create false concern.
539
00:32:14,933 --> 00:32:16,976
{\an8}JUUL got unfairly blamed
540
00:32:17,060 --> 00:32:19,771
{\an8}for these diseases
caused by something else.
541
00:32:19,854 --> 00:32:22,065
{\an8}Even after it started to become clear
542
00:32:22,148 --> 00:32:26,152
{\an8}that most EVALI cases
were linked to vitamin E acetate,
543
00:32:26,235 --> 00:32:29,614
{\an8}the CDC seemed very hesitant
to clear JUUL's name.
544
00:32:29,697 --> 00:32:31,115
{\an8}What we're recommending is,
545
00:32:31,199 --> 00:32:33,451
{\an8}if you're concerned
about your health risks
546
00:32:33,534 --> 00:32:35,828
{\an8}in light of this investigation,
that you consider
547
00:32:35,912 --> 00:32:38,915
{\an8}not using e-cigarettes or vaping products...
548
00:32:38,998 --> 00:32:41,084
{\an8}To some people, that seemed like
549
00:32:41,167 --> 00:32:45,838
the CDC was taking this as an opportunity
to make people quit vaping
550
00:32:45,922 --> 00:32:48,549
whether it was because of JUUL or not.
551
00:32:48,633 --> 00:32:52,637
North Carolina suing
the e-cigarette maker JUUL.
552
00:32:52,720 --> 00:32:54,430
The Office of the Attorney General
553
00:32:54,514 --> 00:32:57,684
is launching an investigation
into JUUL Laboratories...
554
00:32:57,767 --> 00:32:59,644
A comprehensive lawsuit...
555
00:32:59,727 --> 00:33:03,606
President Trump proposing a ban
on the sale of most flavored e-cigarettes.
556
00:33:03,690 --> 00:33:06,192
{\an8}We're using the power
of the Minnesota Attorney General
557
00:33:06,275 --> 00:33:08,987
{\an8}to bring a lawsuit against JUUL Labs
558
00:33:09,070 --> 00:33:12,031
{\an8}on behalf of the state
and the people of Minnesota.
559
00:33:12,699 --> 00:33:16,828
{\an8}Everything was coming at us everywhere,
all the time.
560
00:33:16,911 --> 00:33:20,623
{\an8}It was like, "Do we need one more thing?
We're trying so hard here."
561
00:33:20,707 --> 00:33:23,334
{\an8}New York, Michigan,
Massachusetts,
562
00:33:23,418 --> 00:33:26,629
{\an8}they were going to take all
flavored vaping products off the market.
563
00:33:26,713 --> 00:33:29,007
{\an8}People say JUUL is toxic.
564
00:33:29,674 --> 00:33:30,674
{\an8}Is it?
565
00:33:31,009 --> 00:33:32,552
{\an8}The product or the company?
566
00:33:32,635 --> 00:33:36,556
{\an8}And he was on television,
and Kevin came off looking disingenuous.
567
00:33:36,639 --> 00:33:39,767
{\an8}People say the long-term effects of vaping
are not known. That's true.
568
00:33:39,851 --> 00:33:42,103
{\an8}That's true. That's a true statement.
569
00:33:42,186 --> 00:33:43,771
{\an8}Then how can you sell it every day?
570
00:33:43,855 --> 00:33:46,232
{\an8}Aren't you selling first
and asking questions later?
571
00:33:46,315 --> 00:33:47,608
{\an8}We think we have a product...
572
00:33:47,692 --> 00:33:49,092
{\an8}It didn't present well.
573
00:33:49,152 --> 00:33:53,531
{\an8}It was believed that he hurt the company
and reputation more than he helped it.
574
00:33:55,199 --> 00:33:59,996
All of this together has led
to this terrible misperception
575
00:34:00,079 --> 00:34:02,290
about the dangers of vaping.
576
00:34:02,373 --> 00:34:06,711
More than half,
perhaps as many as 75% of Americans,
577
00:34:06,794 --> 00:34:09,797
{\an8}think that e-cigarettes are more dangerous
578
00:34:09,881 --> 00:34:13,426
{\an8}or as dangerous as combustible tobacco.
579
00:34:13,509 --> 00:34:18,222
Now, there is no reputable scientist,
not one, who would tell you that's true.
580
00:34:19,140 --> 00:34:22,894
We know more bad things
about e-cigarettes today
581
00:34:22,977 --> 00:34:24,687
than we did five years ago.
582
00:34:24,771 --> 00:34:27,231
{\an8}There are many adverse
health effects of e-cigarettes.
583
00:34:27,315 --> 00:34:32,403
{\an8}The machine is detecting a higher velocity
of flow through these vessels.
584
00:34:32,487 --> 00:34:35,823
{\an8}The animals' arteries stiffened
almost as much as those exposed
585
00:34:35,907 --> 00:34:38,076
{\an8}to cigarette smoke over the same time.
586
00:34:38,159 --> 00:34:43,164
{\an8}One has to be really careful
to generalize from animals to humans.
587
00:34:44,332 --> 00:34:48,503
{\an8}We did one of the first studies
of the toxins in e-cigarettes,
588
00:34:49,087 --> 00:34:55,510
and we found that it had almost none
of the carcinogens in cigarettes.
589
00:34:56,344 --> 00:34:57,584
{\an8}For about two hours,
590
00:34:57,637 --> 00:35:01,307
{\an8}the NYU team simulated
smoking four packs of cigarettes.
591
00:35:01,390 --> 00:35:03,559
{\an8}Oh, the aroma. Do you smell that?
592
00:35:03,643 --> 00:35:05,770
{\an8}The differences were plain to see.
593
00:35:05,853 --> 00:35:08,481
{\an8}- So this right here, this is tar.
- Yes.
594
00:35:09,065 --> 00:35:12,735
{\an8}The vapor from a coffee-flavored e-liquid,
not so much.
595
00:35:12,819 --> 00:35:14,320
{\an8}There's a little dampness.
596
00:35:14,821 --> 00:35:16,322
{\an8}- Smells like coffee.
- Yes.
597
00:35:16,405 --> 00:35:19,867
{\an8}Millions of people around the world
using e-cigarettes,
598
00:35:19,951 --> 00:35:22,578
{\an8}there is not one documented death
from an e-cigarette.
599
00:35:22,662 --> 00:35:25,540
They're probably less carcinogenic
than a cigarette.
600
00:35:25,623 --> 00:35:28,876
But that's like saying
jumping out of the 15th story
601
00:35:28,960 --> 00:35:32,672
isn't as dangerous
as jumping out of the 50th story.
602
00:35:35,299 --> 00:35:38,219
It's not black and white.
Both sides need to acknowledge that
603
00:35:38,302 --> 00:35:41,848
and try to figure out a way
to have some kind of common grounds.
604
00:35:41,931 --> 00:35:44,684
{\an8}But obviously that hasn't happened.
605
00:35:44,767 --> 00:35:47,645
{\an8}It's not surprising
that the public health community
606
00:35:47,728 --> 00:35:49,147
is divided on this.
607
00:35:50,022 --> 00:35:53,526
They are so desperate
for a genuine solution,
608
00:35:54,068 --> 00:35:59,866
and have been fooled so often by low tars,
and lights, and ultra lights, and filters.
609
00:35:59,949 --> 00:36:03,035
That has led to suspicion,
rightly or wrongly,
610
00:36:03,119 --> 00:36:05,371
that even when something
truly safer comes along,
611
00:36:05,454 --> 00:36:07,665
how can we trust this industry?
612
00:36:08,166 --> 00:36:10,293
What they're united on is that
613
00:36:10,376 --> 00:36:12,712
the cigarette is
the world's deadliest product.
614
00:36:12,795 --> 00:36:15,131
We need to find some exit from that.
615
00:36:15,214 --> 00:36:17,175
Is JUUL the great savior,
616
00:36:18,259 --> 00:36:21,721
or is this just the next new gimmick?
617
00:36:31,564 --> 00:36:36,110
{\an8}Darsana Capital has cut JUUL's valuation
by more than a third.
618
00:36:36,819 --> 00:36:40,072
2019 was a disastrous year
for JUUL, financially.
619
00:36:40,156 --> 00:36:43,075
From week to week,
they could see the numbers falling.
620
00:36:43,159 --> 00:36:45,661
There is a major shake-up
underway this morning
621
00:36:45,745 --> 00:36:48,164
at e-cigarette giant JUUL Labs.
622
00:36:48,247 --> 00:36:51,375
The company's CEO, Kevin Burns,
is being replaced.
623
00:36:52,752 --> 00:36:55,432
There was an all-hands meeting,
and it was short and sweet.
624
00:36:55,463 --> 00:36:57,965
"I'm going to spend more time
with my family. I'm out."
625
00:36:58,049 --> 00:36:59,508
I don't think so.
626
00:36:59,592 --> 00:37:04,055
He was fired. Come on,
spend more time with his children?
627
00:37:04,138 --> 00:37:06,974
{\an8}It was announced
that he had picked his replacement,
628
00:37:07,058 --> 00:37:09,852
{\an8}and that it was K.C. Crosthwaite.
629
00:37:09,936 --> 00:37:13,689
Who the heck is K.C.? I had never
heard of him. I didn't know who he was.
630
00:37:13,773 --> 00:37:15,024
Altria.
631
00:37:15,524 --> 00:37:16,734
Philip Morris.
632
00:37:19,695 --> 00:37:22,531
Of course,
so many of us feeling suspicious.
633
00:37:22,615 --> 00:37:25,117
{\an8}Big Tobacco exec coming in.
634
00:37:25,701 --> 00:37:28,913
To a lot of people, it felt like
this was always in the plan.
635
00:37:29,497 --> 00:37:31,582
People were very upset.
636
00:37:33,125 --> 00:37:36,379
Like, "This is our CEO?
I can't work here anymore."
637
00:37:37,546 --> 00:37:41,259
He talked a lot about
if we wanted to achieve the mission,
638
00:37:41,342 --> 00:37:43,177
we needed to have public trust.
639
00:37:43,261 --> 00:37:45,846
And a lot of us were like,
"Yeah, no shit."
640
00:37:46,347 --> 00:37:49,767
"This is why we were suspicious
of you and the Altria deal."
641
00:37:49,850 --> 00:37:53,312
The fundamental thesis of our company
is not changing...
642
00:37:53,396 --> 00:37:58,192
It's like none of the things
we were promised ever came to fruition,
643
00:37:58,276 --> 00:38:02,405
and the things everybody would have feared
did start to happen.
644
00:38:03,572 --> 00:38:05,658
When K.C. took over,
645
00:38:05,741 --> 00:38:09,954
there were people who came in
who were tobacco executives.
646
00:38:10,663 --> 00:38:16,127
They had been working for this company
that I considered to be the root of evil.
647
00:38:16,836 --> 00:38:18,671
A lot of the original people
that were
648
00:38:18,754 --> 00:38:21,007
at the start-up at the beginning had left.
649
00:38:22,425 --> 00:38:26,679
Neither James nor Adam was playing
a key role in JUUL by this point.
650
00:38:26,762 --> 00:38:28,848
And now, with someone
from Altria coming in,
651
00:38:28,931 --> 00:38:31,976
they were even more marginalized
within the company.
652
00:38:32,059 --> 00:38:34,437
K.C. Crosthwaite decided
to move James and Adam
653
00:38:34,520 --> 00:38:36,772
into what he called a "Founders Office."
654
00:38:36,856 --> 00:38:40,401
No such thing as
a Founders Office. Never heard that term.
655
00:38:40,901 --> 00:38:43,529
It came across as
they're being pushed out.
656
00:38:44,447 --> 00:38:47,992
K.C.'s directive
was "Right JUUL's Path,"
657
00:38:48,075 --> 00:38:53,080
and Adam and James' influence
was seen as a distraction from that.
658
00:38:53,914 --> 00:38:57,209
Adam made the decision
that he was ready to leave JUUL.
659
00:38:57,293 --> 00:38:59,545
There was no big announcement.
660
00:38:59,628 --> 00:39:02,048
He was ready to put
the JUUL chapter behind him.
661
00:39:03,007 --> 00:39:06,552
And not long after,
James sent a company-wide memo.
662
00:39:11,474 --> 00:39:15,102
{\an8}That was the turning point.
Old JUUL was gone.
663
00:39:24,320 --> 00:39:28,324
We believed that this was
going to change the world for the better,
664
00:39:28,407 --> 00:39:33,037
and to see it reduced to where it was,
puppet-mastered by Big Tobacco...
665
00:39:34,205 --> 00:39:36,791
It was just too much for him to bear.
666
00:39:36,874 --> 00:39:40,127
James was seeing JUUL become
something he didn't envision it to be,
667
00:39:40,211 --> 00:39:43,130
and it was like, "Maybe this is
the best time to walk away."
668
00:39:44,173 --> 00:39:46,133
I felt badly for him
669
00:39:46,217 --> 00:39:50,262
because it had been something
he worked so tirelessly on,
670
00:39:50,346 --> 00:39:52,848
and it was such
a big part of his identity.
671
00:39:53,766 --> 00:39:56,769
James' departure
was the last step in its transition
672
00:39:56,852 --> 00:39:59,688
to a company that looked
fairly indistinguishable
673
00:39:59,772 --> 00:40:03,776
from the tobacco industry that it
had originally sought to disrupt.
674
00:40:09,198 --> 00:40:11,301
You initially think
you're saving the world,
675
00:40:11,325 --> 00:40:14,370
and then all of a sudden,
people are saying, "No, you're the devil."
676
00:40:16,872 --> 00:40:20,292
Is it even possible
to make a safe cigarette?
677
00:41:05,087 --> 00:41:08,257
The ultimate tragedy
in the tortured story of JUUL
678
00:41:08,340 --> 00:41:12,887
is, wow, they had succeeded
where every predecessor had failed.
679
00:41:12,970 --> 00:41:15,806
They had succeeded with technology
680
00:41:15,890 --> 00:41:19,310
that more efficiently delivered
the nicotine into the lungs
681
00:41:19,393 --> 00:41:23,355
without having to burn tobacco leaves
and inhale tobacco smoke.
682
00:41:23,439 --> 00:41:26,442
The tragedy isn't the product
that they produced,
683
00:41:26,525 --> 00:41:31,655
the tragedy is that they then engaged
in advertising, marketing, and promotion
684
00:41:31,739 --> 00:41:32,781
coupled with a product
685
00:41:32,865 --> 00:41:37,828
that did a better job of delivering
an addictive drug that appealed to kids,
686
00:41:37,912 --> 00:41:39,705
whether they intended it or not.
687
00:41:39,788 --> 00:41:44,668
And by doing that, they blew up
all the progress that was being made.
688
00:41:44,752 --> 00:41:47,004
That is the ultimate tragedy.
689
00:41:48,380 --> 00:41:51,759
JUUL will always go down
as the case study
690
00:41:51,842 --> 00:41:54,303
of when a company moves fast,
691
00:41:54,386 --> 00:41:57,473
it breaks things,
and cannot recover as a result.
692
00:41:57,556 --> 00:42:01,268
The mission was perverted
by an incredible,
693
00:42:01,352 --> 00:42:03,479
astronomical potential for wealth.
694
00:42:03,562 --> 00:42:06,398
{\an8}It was greed. Pure, unadulterated greed.
695
00:42:08,984 --> 00:42:11,028
"Fuck it, ship it"
may work well
696
00:42:11,111 --> 00:42:13,280
if we're talking about
an iPhone or a toaster,
697
00:42:13,364 --> 00:42:16,325
but it's not really appropriate
when we're talking about
698
00:42:16,408 --> 00:42:18,244
chemicals going into the lungs.
699
00:42:19,703 --> 00:42:21,163
If I had a crystal ball
700
00:42:21,247 --> 00:42:23,600
and could have seen the underage usage
take off like it did,
701
00:42:23,624 --> 00:42:25,292
I'd have done something to stop it.
702
00:42:25,376 --> 00:42:27,294
But none of us have crystal balls.
703
00:42:27,378 --> 00:42:30,631
People say, "Our products are being used
in ways we didn't anticipate."
704
00:42:30,714 --> 00:42:32,758
It's like,
"You should have, that's your job."
705
00:42:32,841 --> 00:42:35,511
"You should have anticipated
those things and solved them,
706
00:42:35,594 --> 00:42:37,763
and otherwise,
you should not have put these out
707
00:42:37,846 --> 00:42:40,933
in front of thousands,
millions, billions of people."
708
00:42:42,059 --> 00:42:45,688
It was the perfect news story,
guaranteed to get you views
709
00:42:45,771 --> 00:42:47,231
guaranteed to get you clicks.
710
00:42:47,314 --> 00:42:50,568
No one could stop talking about it
and doing their advertising for them.
711
00:42:50,651 --> 00:42:52,611
Even this documentary
is doing it right now.
712
00:42:53,195 --> 00:42:56,949
We're going to show the Vaporized campaign
to potential teenage users.
713
00:42:57,449 --> 00:43:00,286
JUUL Labs isn't Big Tobacco.
714
00:43:00,369 --> 00:43:04,331
We are here to eliminate its product,
the cigarette.
715
00:43:05,416 --> 00:43:10,296
It's political theater. Show upset moms
that he's got this issue under control.
716
00:43:10,379 --> 00:43:13,090
Adults make their own decisions.
They have developed brains.
717
00:43:13,173 --> 00:43:15,050
But our kids have to be protected.
718
00:43:16,010 --> 00:43:18,804
As a vaper, who is standing up for me?
719
00:43:18,887 --> 00:43:22,641
We can't completely help
35 million adults,
720
00:43:22,725 --> 00:43:25,603
and completely ignore
protecting our teens.
721
00:43:26,729 --> 00:43:29,898
But it's not either/or, it's both/and.
722
00:43:29,982 --> 00:43:33,110
So we have to keep our eye on the prize.
723
00:43:35,779 --> 00:43:39,825
Adam and James demonstrated
vaping is an alternative.
724
00:43:40,576 --> 00:43:43,287
You will see your grandmother
finally quit smoking.
725
00:43:43,370 --> 00:43:45,581
You will understand why this is important.
726
00:43:55,591 --> 00:43:57,760
They better use me as
a test study,
727
00:43:57,843 --> 00:43:59,678
'cause been doing it from day one.
728
00:44:01,722 --> 00:44:04,933
One reason why
I haven't really tried to quit yet
729
00:44:05,476 --> 00:44:07,519
is because I haven't wanted to.
730
00:44:07,603 --> 00:44:11,148
Right now I'm 24,
and I like to go out with my friends,
731
00:44:11,231 --> 00:44:15,736
and it's just not something I feel like
I need to change in my lifestyle yet.
732
00:44:36,715 --> 00:44:38,175
♪ Wake up ♪
733
00:44:39,468 --> 00:44:43,263
♪ You're getting high on your own supply ♪
734
00:44:46,058 --> 00:44:47,893
♪ Oh, baby ♪
735
00:44:49,019 --> 00:44:52,856
♪ You're still alive
When you could have died ♪
736
00:44:53,816 --> 00:44:55,609
♪ Oh ♪
737
00:44:55,693 --> 00:45:01,240
♪ The world is not around because of you ♪
738
00:45:05,160 --> 00:45:11,166
♪ You know I'm not around because of you ♪
739
00:45:16,630 --> 00:45:20,676
♪ You've got a mouthful of diamonds ♪
740
00:45:21,635 --> 00:45:25,681
♪ And pocketful of secrets ♪
741
00:45:26,181 --> 00:45:30,102
♪ I know you're never telling anyone ♪
742
00:45:31,019 --> 00:45:35,899
♪ Because the patterns
They control your mind ♪
743
00:45:37,025 --> 00:45:41,071
♪ Those patterns take away my time ♪
744
00:45:43,031 --> 00:45:44,950
♪ Hello, goodbye ♪
745
00:46:03,051 --> 00:46:04,219
♪ Wasted ♪
746
00:46:05,846 --> 00:46:09,725
♪ You tell the truth
When you could've lied ♪
747
00:46:12,478 --> 00:46:14,480
♪ And troubles ♪
748
00:46:15,439 --> 00:46:19,693
♪ Are on the rise
'Cause you're in disguise ♪
749
00:46:20,486 --> 00:46:21,612
♪ Oh ♪
750
00:46:21,695 --> 00:46:26,241
♪ And if it isn't me ♪
751
00:46:27,117 --> 00:46:30,788
♪ Then pack your bags and leave ♪
752
00:46:31,371 --> 00:46:38,337
♪ I wish I could believe blue devils
Won't take you back ♪
753
00:46:38,420 --> 00:46:40,339
♪ Out to the salty sea ♪
67740
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