Tobacco settlement ends illegal distribution

By Mary Manning

Friday, Jan. 9, 2009 | 1:50 p.m.

A coalition of 42 states, including Nevada, entered into a settlement with Santa Fe Natural Tobacco Company for violating a tobacco agreement, said Nevada Attorney General Catherine Cortez Masto.

The company had distributed decorative tin signs to consumers featuring its "Natural American Spirit" cigarettes brand name. Distributing merchandise bearing the brand name of cigarette companies violates the Master Settlement Agreement, the historic 1998 settlement between state attorneys general and cigarette makers.

"My fellow attorneys general and I worked together so we could let cigarette manufacturers know any violation of the MSA will be prosecuted," Masto said. "We will not allow any promotion of their product on signs, clothing or other items."

Santa Fe Natural Tobacco Company has agreed not to distribute the following types of brand name merchandise: decorative tin signs, toys, games, fashion accessories, CDs, DVDs, video games, clothing, athletic equipment, outdoor gear, luggage, stationery items, housewares, and paintings and plaques intended for the home, the settlement said.

In addition, Santa Fe has agreed to pay a penalty of $250 for every future violation of the agreement.

The 1998 master settlement agreement required participating tobacco companies to make substantial annual payments to 52 states and territories, and imposed significant marketing and advertising restrictions on the companies.

Despite declines in cigarette purchases, according to the Centers for Disease Control and Prevention, tobacco-related diseases continue to be a leading preventable cause of death in the United States and results in more than $190 billion in medical expenses each year.

The states comprising the coalition include Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Washington, West Virginia and Wyoming, as well the District of Columbia.