Tobacco Master Settlement Agreement 1998
13 avril 2021
After the MSA, domestic cigarette sales and exports declined (Figure 3). domestic consumption had declined in the run-up to the AMS; In 1999, there was a larger decline from 452 billion units to 408 billion units. In 2002, due to massive price increases following the introduction of the MSA, domestic volume was, as expected, 390 billion units and was lower than the trend expected between 1990 and 1998. Unit exports fell significantly more than the 1990-98 trend line after the MSA forecast. The decline in exports to the MSA was from 1998 to 2002. Changes in post-AMS exports have reflected WMA incentives and other factors that have influenced exports. The Master Settlement Agreement (MSA) is an agreement reached in November 1998 between the Attorneys General of 46 states, 5 U.S. territories, the District of Columbia and the four largest tobacco companies in America on the advertising, marketing and advertising of cigarettes. In addition to requiring the tobacco industry to pay billions of dollars a year to housing countries forever, the MSA has also imposed restrictions on the sale and marketing of cigarettes by participating cigarette manufacturers. This remedy proposed by the Congress (1997 National Settlement Proposal (NSP), also known as the « June 20, 1997 proposal ») for the cigarette tobacco problem, resembled the subsequent multistate settlement agreement (MSA), but with significant differences. For example, the congressional proposal would have provided for one-third of all means to combat teen smoking, but these restrictions are not included in the MSA.
 In addition, Congress` proposal would have imposed oversight by the Food and Drug Administration and introduced restrictions on advertising at the federal level. It also would have granted immunity from prosecution by the state; Punitive damages eliminated in individual remedies; and prohibited the use of class actions or other jons or aggregation devices without the defendant`s consent, in order to ensure that only individual actions could be brought.  The congressional proposal called for payments to the states to the tune of $368.5 billion over a 25-year period.  On the other hand, assuming that the majors would retain their market share, the MSA offers base payments of approximately $200 billion over a 25-year period.  This basic payment is subject to the Master Settlement Agreement (MSA) and individual comparisons have put an end to the actions filed by the Attorneys General. Until recently, it was not possible to assess the impact of the comparisons on the company`s decision, as there had not been enough years since the MSA closed in November 1998. Based on data provided by five U.S. tobacco producers in 1990-2002, this study shows that the value of businesses increased after 1998.
Ironically, comparisons may have improved the financial health of tobacco companies and states have become financially dependent on the continued financial success of companies. Disputes can be used to improve public health; By maintaining the financial viability of the business, this type of policy guarantees the continued sale of a harmful product. The following year, the major cigarette manufacturers made their accounts with tobacco-producing countries to compensate tobacco producers for the losses they had to suffer as a result of higher cigarette prices resulting from previous comparisons. With the so-called « Phase II » rule, this agreement created the National Tobacco Growers` Settlement Trust Fund. Tobacco producers and quota holders in the 14 countries that grow smoked tobacco and burley for cigarettes may receive payments from the trust fund.