2007 National Conference on Tobacco or Health

Wednesday, October 24, 2007
Exhibit Hall

Analysis of the Findings Regarding MSA Violations in U.S. v. Philip Morris

Chris N. Banthin, JD, Public Health Advocacy Institute, Tobacco Control Resource Center, chris@tplp.org

Learning Objectives: Recognize that the tobacco manufacturers have violated the MSA and that these violations are evidenced in the judge’s decision in the U.S. Department of Justice’s racketeering trial against the tobacco industry.

Problem/Objective: The Master Settlement Agreement (“MSA”) requires the major American cigarette manufacturers to refrain from a host of behaviors that are detrimental to the public health, including youth marketing. Attorneys General of the party states have the power to enforce the agreement. In August 2006, Judge Gladys Kessler found the manufacturers liable for violating the Racketeer Influenced and Corrupt Organizations Act (known commonly as “RICO”). We sought to identify potential MSA violations evidenced in her opinion.

Methods: We analyzed the text of Judge Kessler's opinion alongside that of the MSA and of court opinions regarding MSA interpretation.

Results: To support her conclusion, Judge Kessler made copious findings of fact, many of which evidence potential ongoing MSA violations. For example, she found that after the MSA went into effect the manufacturers drastically increased their use of price promotions despite their own long recognition of young people's price sensitivity. Another example is the manufacturers' increased sponsorship budget, since the MSA, of events such as televised racing that are extremely attractive to youth.

Conclusions: Judge Kessler's findings can serve as a critical tool to inform the public health community about the tobacco industry's continued misconduct and can serve as a call to action for state Attorneys General to bring MSA enforcement actions. Such awareness and enforcement will force the offending manufacturers to change their misconduct and also will serve to deter their future MSA violations, thereby maximizing the MSA's ability to keep industry behavior in check to the betterment of public health.