The agreement reached between the U.S.' four largest
cigarette manufacturers (Philip Morris, RJR, Lorillard and
Brown & Williamson) and eight states, designed to resolve
all remaining state claims over health costs related to
smoking, "would cost the tobacco companies" $206B over 25
years and would "restrict cigarette advertising and
marketing," according to Barry Meier of the N.Y. TIMES. The
companies have agreed to an "array of marketing
restrictions," such as a ban on billboard and transit ads
and the sale of clothing and merchandise with brand logos.
The plan "would take effect once states representing about"
80% of the nation's Medicaid population approve the deal.
The tobacco companies "could withdraw" if not enough states
back the bill (N.Y. TIMES, 11/14). Richard Tomkins of the
FINANCIAL TIMES wrote if "more than two or three states
refuse to sign -- especially big states such as [NY or CA]
-- the deal could fall apart, but most are expected to
approve the settlement" (FINANCIAL TIMES, 11/14).
WHAT IT MEANS: In AZ, Adrianne Flynn wrote that the
deal would "limit tobacco companies to one brand-name (such
as Marlboro or Winston) event sponsorship per year [and] ban
ads in stadiums and arenas, outdoor ads larger than a
poster, and cartoon figures" (ARIZONA REPUBLIC, 11/13). It
would also ban sponsorships of youth-oriented sporting
events. While producers would be able to only sponsor one
sporting event using the brand name of a cigarette, there
"would be no limits on sponsorships that use a cigarette
company's corporate name" (N.Y. TIMES, 11/14). A "separate
deal" was also struck on Saturday with U.S. Tobacco, "the
leading maker of chewing tobacco." WA state AG Christine
Gregoire said that the company, in addition to accepting the
cigarette deal, "agreed to quit giving free chewing tobacco
to ... sports teams" (Raleigh NEWS & OBSERVER, 11/15).