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Big Tobacco anticipated that not all manufacturers would sign the MSA… so they included a clause in the MSA that required non-participating manufacturers to contribute money to an escrow fund for every cigarette sold.6 Ostensibly this was to cover the costs of lawsuits that might arise against them, but in actuality it was designed to close the price gap between the small manufacturers and Big Tobacco, taking away their competitive advantage and driving them out of business.

Another stipulation in the MSA required states to demonstrate to Big Tobacco’s satisfaction that they were making a sufficient effort to eliminate any price advantage for small manufacturers. This forced the states to work for Big Tobacco and basically put these small tobacco manufacturers out of business in order to keep the dollars flowing from the MSA. In essence the devil had returned to claim his prize for the agreement that was made.

Armed with the model legislation from the MSA approved in each of the 46 state legislatures as an enforcement tool7 the states are now working enthusiastically to eliminate Big Tobacco’s competition.


1 “How Big Tobacco got away with the Crime of the Century”, Pepe’s Non-Smoking Party Lounge, Pepe Lepew, March 28, 2011, http://theloungeisback.wordpress.com/2011/03/28/how-big-tobacco-got-away-with-the-crime-of-the-century/

2 “Tobacco Settlement and Declining State Revenues”, James B. Carroll and David A. Moss, Trends Alert: Critical Information for  State Decision-Makers; The Council of State Governments; March 2002, p. 3, p. 7.

3 “Tobacco Settlement and Declining State Revenues”, James B. Carroll and David A. Moss, Trends Alert: Critical Information for  State Decision-Makers; The Council of State Governments; March 2002, p. 6, p. 8.

4 “Tobacco Settlement and Declining State Revenues”, James B. Carroll and David A. Moss, Trends Alert: Critical Information for  State Decision-Makers; The Council of State Governments; March 2002, p. 5, p. 6.

5 “Tobacco Settlement and Declining State Revenues”, James B. Carroll and David A. Moss, Trends Alert: Critical Information for  State Decision-Makers; The Council of State Governments; March 2002, p. 8.

6 “Tobacco Settlement and Declining State Revenues”, James B. Carroll and David A. Moss, Trends Alert: Critical Information for  State Decision-Makers; The Council of State Governments; March 2002, p. 6.

7 “Tobacco Settlement and Declining State Revenues”, James B. Carroll and David A. Moss, Trends Alert: Critical Information for  State Decision-Makers; The Council of State Governments; March 2002, p. 6.



 
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