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Tobacco Settlement: Continued

President Clinton is expected to weigh in with his position on the agreement after Labor Day, following a review by Health and Human Services Secretary Donna Shalala and White House adviser Bruce Reed. Clinton reportedly is inclined to go along with the deal despite the misgivings of Shalala and Vice President Al Gore.

On July 3, Mississippi settled its Medicaid lawsuit against tobacco makers for $3.36 billion over 25 years. Mike Moore, state attorney general, still urged Congress to proceed with a national bill.

How lawmakers will react to proposed legislation — and how soon — is anyone’s guess. Given the complexity of the issues and the number of committees involved, “the tobacco settlement will not be implemented by Congress until next year, if then,” according to Fithian.


New Ad Restrictions Tougher Than FDA Rule

Five tobacco makers have agreed to advertising restrictions that would:

  • Ban the use of human and cartoon images in ads and on packages
  • Ban all outdoor advertising
  • Restrict ads to black text on white background except in adult publications and adult-only facilities
  • Require ads to carry “nicotine delivery device” statement
  • Ban tobacco brand names on non-tobacco merchandise
  • Ban offers of non-tobacco items or gifts based on proof of purchase of tobacco products
  • Ban brand-name sponsorship of sporting and other events
  • Prohibit tobacco advertising on the Internet
  • Prohibit the use of non-tobacco brand names as brand names of tobacco products (with grandfather clause)
  • Restrict tobacco advertising to FDA-specified media
  • Restrict point-of-purchase displays
  • Ban payments for tobacco product placements in movies, TV shows, and video games
  • Ban payments to “glamorize” tobacco use in media appealing to minors
  • Require new ads and labeling to be submitted to FDA for review
  • Require 25% of package front panel and 20% of ad space to contain warnings and disclosures
  • Require industry to pay $500 million annually for multi-media anti-smoking education program.

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