SMOKELESS TOBACCO 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 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:
  • Providing $107 million to the American Legacy Foundation, over a 10-year period that ended 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.