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Terms of the Multistate Tobacco Settlement

Listed below are the general terms of the tobacco settlement:

  • Tobacco companies will pay $206 billion over the next 25 years to compensate states and smokers for smoking-related disease and to fund smoking-cessation and educational programs.
  • States' attorneys general and class-action attorneys will not be allowed to file lawsuits against the industry. Individual smokers can file suits, and, if they win, they will be paid out of the compensatory-damages fund. No punitive-damage claims for past industry misdeeds will be allowed.
  • Cigarette vending machines will be banned.
  • The companies will pay fines if youth smoking does not decline by 30 percent in five years, by 50 percent in seven years, and by 60 percent in 10 years.
  • Ads with cartoon characters (such as Joe Camel) are banned.



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