The Master Settlement Agreement places regulations on tobacco companies.
In 1998, America's largest tobacco companies settled a lawsuit by 46 states regarding the recovery of money states had previously paid to treat illnesses related to smoking. This settlement, called the Master Settlement Agreement (MSA), contains specific agreements limiting the tobacco industry's promotion of products to youth, marketing and advertising as well as monetary penalties.
Monetary Agreement
Through 2025, the tobacco companies agree to pay a total of $246 billion to the states involved in the settlement. The states are to use the funds to create antismoking campaigns. Under the agreement, additional perpetual payments will continue to the states beyond 2025.
Public Education Agreement
The tobacco industry created a national public education fund called the American Legacy Foundation. The purpose of the foundation is to develop programs to educate youth on the dangers of tobacco and to provide prevention and cessation services.
Marketing Agreement
Under the MSA, tobacco companies agree not to use cartoon images in the packaging and labeling of cigarettes. Tobacco products cannot be advertised on billboards, stadium signs, transit signs and other types of outdoor advertising. In addition, placement of tobacco brand logos on merchandise, such as hats and T-shirts, is prohibited.
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