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 (STMSA), the company voluntarily adopted an array of marketing and advertising restrictions. The STMSA began a new chapter in the company's history. As the only smokeless tobacco manufacturer participating in this agreement, the company entered a unique partnership with the states -- one that we believe significantly addresses public concerns regarding youth access to tobacco products.
As part of our partnership with the states, U.S. Smokeless Tobacco Company will provide up to $100 million over a 10-year period to the American Legacy Foundation. The foundation uses the money to fund public programs dedicated to reducing youth usage of tobacco products and youth substance abuse.
Among the advertising restrictions adopted by the company were the elimination of outdoor advertising (including billboards, except if under 14 square feet at retail) and brand-name signage in arenas, stadiums, shopping malls, video game arcades and transit advertising.
Under the STMSA, U.S. Smokeless Tobacco Company is limited to a single brand-name sponsorship in any 12-month period. The company agreed not to sponsor concerts; events in which youths are a significant percentage of the intended audience; events in which any of the paid participants or contestants are youths; and athletic events between opposing teams in any football, baseball, soccer, or hockey league. The company also agreed not to sell or distribute non-tobacco merchandise (such as caps and shirts) bearing the brand name, logo, or trademark of a tobacco product to the general public, and not to use certain non-tobacco brand names on tobacco products.
The company also agreed not to distribute free samples of smokeless tobacco products, except in adult-only facilities or in conjunction with an adult retail purchase of a tobacco product.
U.S. Smokeless Tobacco Company historically has taken an active stance, on its own and in cooperation with retailers, consumers, and other responsible adults to discourage sales of its smokeless tobacco products to minors. There is evidence that these initiatives and other efforts are working. Both government-sponsored studies and other surveys confirm that smokeless tobacco usage by minors is on a downward trend.
Complete STMSA Document