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Smokeless Tobacco Master Settlement Agreement - U.S. Smokeless Tobacco Company

Master Settlement Agreement
Master Settlement Agreement
In November 1998, U.S. Smokeless Tobacco Company became the only smokeless tobacco manufacturer to reach an agreement with 45 state attorneys general. Under this agreement, known as the Smokeless Tobacco Master Settlement Agreement, the company adopted an array of marketing and advertising restrictions and contributed to a national fund to conduct public education campaigns and other programs to reduce underage tobacco use and substance abuse.
USSTC today remains the only smokeless tobacco company in the country participating in this agreement.

Elements of USSTC's partnership with the states include the following:

  • Providing $107 million to the American Legacy Foundation over a 10-year period, ending in 2008, to conduct public education campaigns and other programs to reduce underage tobacco use and substance abuse;
  • Prohibiting taking any action, directly or indirectly, to target youth within any settling state in the advertising, promotion or marketing of tobacco products;
  • Barring the use of cartoons in advertising, promotion, packaging or labeling of tobacco products;
  • Barring most forms of outdoor advertising, including billboards and stadium signs;
  • Barring most forms of transit advertisements, such as those on taxis and at bus stops; and
  • Prohibiting the distribution of apparel or other merchandise such as caps, shirts and backpacks bearing tobacco brand names and logos.
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