Federal Regulation & Tobacco Settlement Agreements


In the late 1990s, Philip Morris USA and U.S. Smokeless Tobacco Company signed tobacco settlement agreements with state attorneys general. 
These agreements fundamentally changed how companies advertise, market and sell tobacco products in the United States. The companies are committed to continuing to meet their obligations under these agreements.
Under these agreements, PM USA has made payments of more than $70 billion to the states since 1997, and USSTC paid $107 million to the American Legacy Foundation. The companies have encouraged the states to devote a significant portion of these funds to support effective tobacco cessation programs and programs to prevent underage use.
 
The FDA has the authority to address a range of tobacco issues, including reducing underage tobacco use, encouraging cessation, communicating the health effects of tobacco products and establishing standards for products that could potentially reduce the harm caused by tobacco products.