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The Tobacco Master Settlement Agreement in 1998. The 4 biggest tobacco manufacturers(T.M.) settled with all 50 states to avoid medicaid lawsuits and future liability. T.M. agreed to pay a minimum of 200+ billion over 25 years because of deceptive marketing,hiding evidence of the negative effects of cigarettes and health care costs due to smoking.

The Original producers were afraid if newer producers didn't have to pay the settlement, It would unfairly benefit them because of higher potential for profit. The agreement was amended so subsequent tobacco producers would have to join the agreement or else they could not get a tax stamp allowing them to be sold in the state

This in turn caused the increasing rise in cigarette prices. People will continue to pay the rising costs of cigarettes.Not sure why pipe tobacco is so much cheaper but a bill has been introduced to tax all tobacco at the same rate.

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11y ago

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