Despite an explicit ban on directing cigarette advertising at children, all three major U.S. tobacco companies selectively increased youth targeting after the prohibition was put in place in 1998 report researchers from the University of Chicago in the March/April issue of Health Affairs.
What was the significance of the 1998 tobacco settlement?
November 1998 marked a pivotal moment in the history of cigarettes in the United States. Forty-six states and the four largest tobacco companies reached a landmark settlement that brought sweeping changes to cigarette manufacturers’ practices—and to rates of smoking.
How many States entered into a Master Settlement Agreement with tobacco companies?
[15] On November 23, 1998, the Attorneys General of the remaining 46 states, as well as of the District of Columbia, Puerto Rico, and the Virgin Islands, entered into the Master Settlement Agreement with the four largest manufacturers of cigarettes in the United States.
How has the settlement affected cigarette smoking?
Forty-six states and the four largest tobacco companies reached a landmark settlement that brought sweeping changes to cigarette manufacturers’ practices—and to rates of smoking. Since the settlement, cigarette smoking rates in the United States have been cut nearly in half.
How many private claims were brought against tobacco companies in 1994?
In the forty years through 1994, over 800 private claims were brought against tobacco companies in state courts across the country. [4] The individuals asserted claims for negligent manufacture, negligent advertising, fraud, and violation of various state consumer protection statutes.
What was the result of the 1998 tobacco settlement?
In the largest civil litigation settlement in U.S. history, the states and territories scored a victory that resulted in the tobacco companies paying the states and territories billions of dollars in yearly installments.
What restrictions were included on tobacco in the 1998 $200 billion settlement agreement?
Prohibits access by youth to free samples of tobacco products. Prohibits payments for placement of tobacco products in the media. Prohibits outdoor advertising of tobacco products. Prohibits transit ads, on or in public or private vehicles.
What effect did the 1998 American tobacco settlement have on tobacco sold in the US?
The MSA continues to have a profound effect on smoking in America, particularly among youth. Between 1998 and 2019, U.S. cigarette consumption dropped by more than 50%.
What was the outcome of the battle between the tobacco industry and the government in 1998?
1998. Attorneys General from 46 states and the tobacco industry reach the landmark Master Settlement Agreement to reimburse state government for tobacco-related health care costs.
Which of the following is a requirement of the Family smoking Prevention and tobacco Control Act?
The Act gives the Food and Drug Administration the power to regulate the tobacco industry. A signature element of the law imposes new warnings and labels on tobacco packaging and their advertisements, with the goal of discouraging minors and young adults from smoking.
What were the terms of the Master Settlement Agreement?
In exchange, the Participating Manufacturers agreed to make annual payments in perpetuity to the Settling States and to substantially restrict their advertising, promotion, and marketing of cigarettes.
Where did the tobacco settlement money go?
This year (fiscal year 2020), the states will collect $27.2 billion from the 1998 tobacco settlement and tobacco taxes. But they will spend less than 3% – just $739.7 million – on programs to prevent kids from using tobacco and help smokers quit - less than a quarter (22.4%) of the total funding recommended by the CDC.
How tobacco settlement money helps Disease Prevention and health Promotion?
The American Lung Association believes that states must use these tobacco settlement dollars, which are intended to compensate states for the healthcare costs from treating sick smokers and former smokers, and revenue from tobacco taxes to fund robust tobacco prevention programs to help tackle the #1 preventable cause ...
Which statement about the effects of nicotine use is true quizlet?
Which statement about the effects of nicotine use is true? Nicotine has no effect on brain chemistry.
When did the smoking ban start?
1 July 2007Implementation. The ban came into force at 06:00 BST on 1 July 2007, as announced on 30 November 2006 by former Secretary of State for Health Patricia Hewitt, who called it "a huge step forward for public health".
When did America ban smoking inside?
In 1975 the U.S. state of Minnesota enacted the Minnesota Clean Indoor Air Act, making it the first state to restrict smoking in most public spaces. At first restaurants were required to have "No Smoking" sections, and bars were exempt from the Act.
What was the Big Tobacco lawsuit?
In 2006, the American Cancer Society and other plaintiffs won a major court case against Big Tobacco. Judge Gladys Kessler found tobacco companies guilty of lying to the American public about the deadly effects of cigarettes and secondhand smoke.
What was the big tobacco lawsuit?
In 2006, the American Cancer Society and other plaintiffs won a major court case against Big Tobacco. Judge Gladys Kessler found tobacco companies guilty of lying to the American public about the deadly effects of cigarettes and secondhand smoke.
How was the tobacco settlement money spent?
This year (fiscal year 2020), the states will collect $27.2 billion from the 1998 tobacco settlement and tobacco taxes. But they will spend less than 3% – just $739.7 million – on programs to prevent kids from using tobacco and help smokers quit - less than a quarter (22.4%) of the total funding recommended by the CDC.
How tobacco settlement money helps Disease Prevention and health Promotion?
The American Lung Association believes that states must use these tobacco settlement dollars, which are intended to compensate states for the healthcare costs from treating sick smokers and former smokers, and revenue from tobacco taxes to fund robust tobacco prevention programs to help tackle the #1 preventable cause ...
Which statement about the effects of nicotine use is true quizlet?
Which statement about the effects of nicotine use is true? Nicotine has no effect on brain chemistry.
How many lawsuits were filed against tobacco companies?
By the mid-1950s, individuals in the United States began to sue the companies responsible for manufacturing and marketing cigarettes for damages related to the effects of smoking. In the forty years through 1994, over 800 private claims were brought against tobacco companies in state courts across the country. The individuals asserted claims for negligent manufacture, negligent advertising, fraud, and violation of various state consumer protection statutes. The tobacco companies were successful against these lawsuits. Only two plaintiffs ever prevailed, and both of those decisions were reversed on appeal. As scientific evidence mounted in the 1980s, tobacco companies claimed contributory negligence as they asserted adverse health effects were previously unknown or lacked substantial credibility.
What is the tobacco master settlement agreement?
The Tobacco Master Settlement Agreement ( MSA) was entered in November 1998, originally between the four largest United States tobacco companies ( Philip Morris Inc., R. J. Reynolds, Brown & Williamson and Lorillard – the "original participating manufacturers", referred to as the "Majors") and the attorneys general of 46 states. The states settled their Medicaid lawsuits against the tobacco industry for recovery of their tobacco-related health-care costs. In exchange, the companies agreed to curtail or cease certain tobacco marketing practices, as well as to pay, in perpetuity, various annual payments to the states to compensate them for some of the medical costs of caring for persons with smoking-related illnesses. The money also funds a new anti-smoking advocacy group, called the Truth Initiative, that is responsible for such campaigns as Truth and maintains a public archive of documents resulting from the cases.
Why did the OPMs and the settling states not join the MSA?
The OPMs worried that the NPMs, both because they would not be bound by the advertising and other restrictions in the MSA and because they would not be required to make payments to the settling states, would be able to charge lower prices for their cigarettes and thus increase their market share.
How long does it take for a SPM to join the Master Settlement Agreement?
As an incentive to join the Master Settlement Agreement, the agreement provides that, if an SPM joined within ninety days following the Master Settlement Agreement's "Execution Date," that SPM is exempt ("exempt SPM") from making annual payments to the settling states unless the SPM increases its share of the national cigarette market beyond its 1998 market share, or beyond 125% of that SPM's 1997 market share. If the exempt SPM's market share in a given year increases beyond those relevant historic limits, the MSA requires that the exempt SPM make annual payments to the settling states, similar to those made by the OPMs, but based only upon the SPM's sales representing the exempt SPM's market share increase.
What was the 1997 National Settlement Proposal?
This proposed congressional remedy (1997 National Settlement Proposal (NSP), a.k.a. the "June 20, 1997 Proposal") for the cigarette tobacco problem resembled the eventual Multistate Settlement Agreement (MSA), but with important differences. For example, although the congressional proposal would have earmarked one-third of all funds to combat teenage smoking, no such restrictions appear in the MSA. In addition, the congressional proposal would have mandated Food and Drug Administration oversight and imposed federal advertising restrictions. It also would have granted immunity from state prosecutions; eliminated punitive damages in individual tort suits; and prohibited the use of class actions, or other joinder or aggregation devices without the defendant's consent, assuring that only individual actions could be brought. The congressional proposal called for payments to the states of $368.5 billion over 25 years. By contrast, assuming that the Majors would maintain their market share, the MSA provides baseline payments of about $200 billion over 25 years. This baseline payment is subject to
How many plaintiffs have ever prevailed in the tobacco case?
Only two plaintiffs ever prevailed, and both of those decisions were reversed on appeal. As scientific evidence mounted in the 1980s, tobacco companies claimed contributory negligence as they asserted adverse health effects were previously unknown or lacked substantial credibility.
When was the Master Settlement Agreement signed?
Adoption of the "Master Settlement Agreement". In November 1998 , the Attorneys General of the remaining 46 states, as well as of the District of Columbia, Puerto Rico, and the Virgin Islands, entered into the Master Settlement Agreement with the four largest manufacturers of cigarettes in the United States.
What did the tobacco companies use their lies for?
At key points in time, when the U.S. government or states tried to legislate them, the tobacco companies used their lies to stall regulation, to stall warnings. ". Berman also said the success of this case shows that prosecutors can come together and take on the larger issues.
Why does the cigarette deal exclude the Food and Drug Administration?
However, the deal excludes any provision for Food and Drug Administration regulation over cigarettes because such a condition would require congressional approval.
How much money will tobacco companies offer farmers?
Tobacco companies will offer farmers about $5 billion to compensate for lower leaf demand resulting from the settlement. "The war against tobacco won't be won in one engagement," Gregoire said, adding, "This is but one battle. This is a realistic solution to our lawsuits. We couldn't overreach for unachievable goals.
How many lawsuits did the Gregoire deal resolve?
Deal resolves 37 state lawsuits. The deal resolves 37 state suits filed against the tobacco industry to recoup Medicaid costs of sick smokers.
Who owns the Liggett cigarette company?
Gregoire also said the deal includes Bennett LeBow's Brooke Group, owner of the Liggett cigarette company, which broke from the rest of the industry and became the first tobacco company to settle with the states in 1996 and 1997. "We're...pleased to be joining the agreement with the attorney generals and the rest of the tobacco industry," Bennett ...
Who makes cigarette smoke?
The cigarette makers, Philip Morris Cos. , the world's largest, RJR Nabisco Holdings Corp., Brown and Williamson Tobacco Corp. and Lorillard Inc., as well as smokeless tobacco maker UST Corp., will participate in the deal.
Does Joe Camel have a tobacco advertising campaign?
The deal bans the use of cartoon characters, such as the once-popular Joe Camel, in any tobacco advertising, though it will permit sports promotions of brand labels in retail stores. Finally, cigarette makers agreed to establish a $250 million foundation dedicated to reducing teen smoking.
What effect did the Master Settlement Agreement have on tobacco advertising?
The Master Settlement Agreement with the tobacco industry appears to have had little effect on cigarette advertising in magazines and on the exposure of young people to these advertisements.
What are the marketing tools of tobacco?
41 Other marketing tools include coupons, direct mail, Internet advertising, newspaper advertising, point-of-sale advertising, promotional allowances to retailers, sponsorship of public entertainment, retail value-added programs (such as “buy one, get one free”), the distribution of samples, and the distribution of specialty items. Many of these promotional techniques have previously been found to have great appeal for young people. 3,19,42 No effort to reduce smoking among young people or other groups will succeed without a complete understanding of the entire marketing programs of tobacco companies.
How much did advertising for youth magazines increase in 1999?
Expenditures on advertising for youth brands in adult-oriented magazines increased by 11.0 percent from 1995 ($26.3 million) to 1998 ($29.2 million), remained constant in 1999 ($29.2 million), and increased by 8.6 percent in 2000 ($31.7 million) ( Table 1 ). Expenditures on advertising for youth brands in youth-oriented magazines increased by 3.7 percent between 1995 ($56.4 million) and 1998 ($58.5 million), increased by 15.2 percent in 1999 ($67.4 million), and returned to a level slightly higher than the presettlement level in 2000 ($59.6 million).
What is reach in cigarette?
Reach is defined as the proportion of all young people 12 to 17 years old who read one or more issues of a magazine containing an advertisement for a given brand of cigarettes during a given year. Data are from Competitive Media Reporting. Youth-oriented magazines were defined as those for which young readers represented more than 15 percent, on average, of the overall readership between 1995 and 2000 or that had an average of more than 2 million young readers. Youth and adult brands were defined as in Figure 1. The differences between adult and youth brands were significant (P=0.004 by the two-tailed paired-sample t-test).
Why were Spin magazine excluded?
Several major magazines with substantial readership among young people (including Spin, Entertainment Weekly, Vibe, Sport, Life, and Allure) were excluded because data on their readers were missing for certain years. Our estimates of both advertising expenditures and the potential exposure of young people are therefore conservative.
Does the Master Settlement Agreement affect cigarette advertising?
The Master Settlement Agreement with the tobacco industry appears to have had little effect on cigarette advertising in magazines. We found that both before and after the 1998 Master Settlement Agreement, tobacco companies consistently allocated to youth-oriented magazines a higher proportion of their expenditures for the advertising of youth brands than of expenditures for the advertising of adult brands and consistently maintained higher levels of exposure among young people to advertising for youth brands than to advertising for adult brands. Despite reductions in the expenditures for cigarette advertising in youth-oriented magazines in the second year after the settlement, the overall level of exposure of young people to this advertising remained high. Although the proposed restriction of cigarette advertising to magazines for which young readers represent less than 15 percent of the overall readership and that have fewer than 2 million young readers would reduce the exposure of young people to cigarette advertising in magazines, such a policy, even under the most optimistic assumptions, would not protect young people from substantial exposure to such advertising.
When did the Master Settlement Agreement start?
In 1998 , the attorneys general of 46 states signed a Master Settlement Agreement with the four largest tobacco companies in the United States. The agreement prohibits tobacco advertising that targets people younger than 18 years of age.
What is the prohibition on tobacco companies?
Prohibiting tobacco companies from taking any action to target youth in the advertising, promotion or marketing of tobacco products.
How many tobacco companies have settled under the MSA?
Eventually, more than 45 tobacco companies settled with the Settling States under the MSA. Although Florida, Minnesota, Mississippi, and Texas are not signatories to the MSA, they have their own individual tobacco settlements, which occurred prior to the MSA.
What is the NAAG Center for Tobacco and Public Health?
The NAAG Center for Tobacco and Public Health works with the Settling States of the MSA to preserve and enforce the MSA’s monetary and public-health mandates, including: Representing, advising, and supporting the Settling States in MSA-related legal matters , including litigation and arbitrations.
What law gave the FDA the power to regulate tobacco products?
In 2009, the Family Smoking Prevention and Tobacco Control Act gave the FDA the power to regulate tobacco products. State attorneys general have been active participants in helping the FDA shape its regulatory authority.
How does the MSA affect smoking?
The MSA continues to have a profound effect on smoking in America, particularly among youth. Between 1998 and 2019 , U.S. cigarette consumption dropped by more than 50%. During that same time period, regular smoking by high schoolers dropped from its near peak of 36.4% in 1997 to a low 6.0% in 2019. As advocates for the public interest, state attorneys general are actively and successfully continuing to enforce the provisions of the MSA to reduce tobacco use and protect consumers.
What is the purpose of entering into agreements with major retail chains?
Entering into agreements with major retail chains to ensure that retailers comply with state laws setting the minimum age at which tobacco products may be purchased and limiting the quantity and content of tobacco advertising at retail locations.
What is the Truth Initiative?
Establishing and funding the Truth Initiative, an organization “dedicated to achieving a culture where all youth and young adults reject tobacco.”.
Why did the tobacco industry settle for the higher figure?
Industry analysts said the tobacco industry settled for the higher figure out of fear that the jury might come down with a huge punitive damages award.
How much did the Florida oil industry pay for the Texas lawsuit?
Friday’s settlement is the third-largest court settlement in U.S. history--topped only by the $11.3 billion the industry agreed to pay Florida and the $15.3 billion it surrendered to settle Texas’ suit.
How much money did Minnesota get from the Blue Cross and Blue Shield?
The state of Minnesota will get $6.17 billion under the agreement and Blue Cross and Blue Shield will receive $469 million. In addition, the nation’s cigarette companies will pay out $440 million in fees to the private lawyers who represented the state and the insurance firm in the suit.
How many internal papers did Minnesota have?
Perhaps more than anything else, those documents may be the lasting legacy of this case. Minnesota’s attorneys already forced the industry to cough up 33 million internal papers, far more than were obtained in any prior case. Former Surgeon General C. Everett Koop has praised that effort as “one of the most significant public health achievements of the second half of the 20th century.”
Why was the Minnesota suit so important?
For the last two years, the Minnesota suit had been viewed as the biggest threat to the industry because of the state’s strong consumer protection and antitrust laws and its success in obtaining secret papers that revealed the industry’s dark side . The industry employed 30 law firms and spent well over $100 million defending the suit.
How much was the 11th hour agreement worth?
It brought the total value of the agreements to $36 billion. The Minnesota case is the only one to go to trial.
Overview
History of adoption
Summary of terms
Contraband statutes
The Tobacco Master Settlement Agreement (MSA) was entered on November 23, 1998, originally between the four largest United States tobacco companies (Philip Morris Inc., R. J. Reynolds, Brown & Williamson and Lorillard – the "original participating manufacturers", referred to as the "Majors") and the attorneys general of 46 states. The states settled their Medicaid lawsuits against the tobacco industry for recovery of their tobacco-related health-care costs. In exchange, the compa…
Criticism
In September 1950, an article was published in the British Medical Journal linking smoking to lung cancer and heart disease. In 1954 the British Doctors Study confirmed the suggestion, based on which the government issued advice that smoking and lung cancer rates were related. In 1964 the United States Surgeon General's Report on Smoking and Health likewise began suggesting the relatio…
Securitization
The Original Participating Manufacturers (OPMs) agreed to several broad categories of conditions:
• to restrict their advertising, sponsorship, lobbying, and litigation activities, particularly as those activities were seen as targeting youth;
• to disband three specific "Tobacco-Related Organizations," and to restrict their creation and participation in trade associations;
Individual state settlements
By the middle of 2000, domestic NPMs and importers had begun to obtain greater market share. The NAAG noted that reductions in settlement payments which result from an overall reduction in cigarette consumption benefit the states because health care costs imposed by each cigarette exceed the settlement payments. On the other hand, when reductions in settlement payments occur because NPM sales displace PM sales, the states receive no benefits if the NPMs do not …
See also
Some anti-smoking advocates, such as William Godshall, have criticized the MSA as being too lenient on the major tobacco companies. In a speech at the National Tobacco Control Conference, Godshall stated that "[w]ith unprecedented future legal protection granted by the state A.G.s in exchange for money, it appears that the tobacco industry has emerged from the state lawsuits even more powerful".