WA secures additional $66 million following $3.8 billion tobacco settlement

Washington received approximately $66 million on Monday from the latest settlement with tobacco company Philip Morris, following a multibillion-dollar settlement reached nearly 30 years ago.

Washington signed the Master Settlement Agreement (MSA) in 1998, along with 45 other states, to impose restrictions on the tobacco industry’s advertising and marketing, the Washington State Office of the Attorney General announced.

The latest settlement follows a previous agreement Washington reached in April with R.J. Reynolds and other large tobacco companies, in which the state received more than $277 million from all parties to resolve similar disputes.

WA tobacco settlement details

Included in the settlement, tobacco manufacturers are to pay billions each year to states that reach resolutions with them, which resulted in roughly $3.8 billion in settlements paid to Washington over recent years.

The payments will continue as long as people continue to purchase tobacco products within the state from the companies included in the settlement. In exchange, the states have agreed not to pursue additional lawsuits for health-related damages incurred by tobacco use.

“That 1998 agreement with tobacco companies continues to be a shining example of holding companies accountable for putting profits over people’s health,” WA Attorney General Nick Brown said. “I’m grateful to our team for negotiating these latest settlements for the benefit of our entire state.”

The recent agreement with Philip Morris resolved disputes through 2015. Washington and Philip Morris will continue to arbitrate disputes related to the years following 2015.

The MSA prohibits tobacco companies from the following things:

• New limits for the advertising, marketing, and promotion of cigarettes.
• Prohibited tobacco advertising that targets people younger than 18.
• Eliminated cartoons in cigarette advertising.
• Eliminated outdoor, billboard, and public transit advertising of cigarettes.
• Cigarette brand names could no longer be used on merchandise.
• Many tobacco companies’ internal documents were made available to the public.

Included in the MSA was the creation of The Legacy Foundation, a nonprofit organization that would be funded by the states included in the settlement.

In 2001, the Legacy Foundation launched the “truth” campaign, which has been credited with improving public health by reducing the number of youth smokers.

Since the MSA was signed, roughly 50 other tobacco companies have entered into the agreement.

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