United States

In the 1990s, 46 states and several territories sued major tobacco companies to recover tobacco-related health care costs. In a settlement of these lawsuits, the states agreed to dismiss their claims. In exchange, the tobacco companies agreed to a series of marketing restrictions and to pay the states more than $200 billion over the first 25 years of the agreement. Specifically, the Master Settlement Agreement (MSA) requires that participating tobacco companies (1) restrict their advertising, sponsorship, lobbying, and litigation activities, particularly those activities that are seen as targeting youth (including a ban on tobacco billboards and cartoon advertising and limits on event sponsorship); (2) dissolve three specific tobacco trade groups; (3) make public the documents that the participating tobacco companies had disclosed during the litigation; (4) fund an anti-tobacco education campaign through the creation of the American Legacy Foundation; and (5) make annual payments to the settling states forever.

Master Settlement Agreement (MSA) (1998).

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Legislation Cited

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Type of Litigation

Governments or insurance agencies may seek reimbursement from the tobacco companies for health care costs related to tobacco. The most famous example is the case brought by individual states in the U.S.A. that resulted in the Master Settlement Agreement.

Tobacco Control Topics

Measures to protect health policies from the commercial or other vested interests of the tobacco industry. (See FCTC Art. 5.3)

Measures to promote and strengthen public awareness of tobacco control issues. (See FCTC Art. 12)

Measures restricting any form of direct or indirect tobacco advertising, promotion and sponsorship. (See FCTC Art. 13)

Measures to promote cessation of tobacco use and adequate treatment for tobacco dependence. (See FCTC Art. 14)

Measures restricting tobacco sales to or by minors, as well as other retail restrictions relating to point-of-sale, candy and toys resembling tobacco products, vending machines, or free distribution. (See FCTC Art. 16)