State Attorney General Jerry Brown announced Sottera will not sell or advertise its battery-operated nicotine cartridges to minors.
The nicotine cartridges often come in flavors like cookies and cream or strawberry that appeal to youngsters.
Sottera also agrees to pay $85,000 in penalties and stop claiming that its products are safer than real cigarettes.
The Food and Drug Administration has determined e-cigarettes contain dangerous chemicals.