Kansas, other states settle with Santa Fe Natural Tobacco Company
Settlement Ends Illegal Distribution of Natural American Spirits Cigarettes Branded Merchandise
January 12, 2009 -- Kansas and a coalition of 42 states today announced a settlement with Santa Fe Natural Tobacco Company after the company violated the tobacco Master Settlement Agreement by distributing decorative tin signs to consumers that featured its "Natural American Spirit" cigarettes brand name.
"It is important we address potential violations of the Master Settlement Agreement in an efficient manner, and come to a resolution that is appropriate for all parties involved," said Six. "I am pleased that, along with many other states, we were able to resolve this situation with Santa Fe and take actions to ensure distribution of these prohibited materials will not happen again."
Distribution of merchandise bearing the brand name of cigarette companies violates the tobacco Master Settlement Agreement ("MSA"), the historic settlement between state Attorneys General and tobacco manufacturers. According to the settlement announced today, Santa Fe Natural Tobacco Company agrees not to distribute the following types of brand name merchandise in the future: decorative tin signs; toys; games; fashion accessories; CDs; DVDs; video games; clothing; athletic equipment; outdoor gear; luggage; stationery items; house wares; and paintings and plaques intended for the home. In addition, Santa Fe agrees to pay a penalty of $250 for every future violation of the agreement.
The MSA, which was reached in 1998, required tobacco companies to pay over $200 billion to 52 states and territories, and imposed significant marketing and advertising restrictions on the participating tobacco manufacturers. Since the MSA was signed, American consumption of cigarettes has declined by over 100 billion cigarettes, based on data from the American Lung Association. According to the Centers for Disease Control, however, tobacco-related disease continues to be the leading preventable cause of death in the United States and results in more than $190 billion in medical expenses each year.
The states comprising the coalition include: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Washington, West Virginia, Wyoming and the District of Columbia.