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TRENTON
– Attorney General Anne Milgram announced
today that New Jersey has entered into a
multi-state settlement with the Santa Fe
Natural Tobacco Company over its violation
of a historic agreement with the nation’s
tobacco manufacturers by distributing decorative
tin signs to consumers that featured its
“Natural American Spirit” cigarettes
brand name.
Distribution
of merchandise bearing the brand name of
cigarette companies violates the tobacco
Master Settlement Agreement (MSA), a historic
1998 settlement involving cigarette companies
and Attorneys General throughout the United
States, including New Jersey.
Under
terms of the settlement announced today,
Santa Fe 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 Natural agrees to pay a penalty
of $250 for every future violation of the
agreement. Forty-two states, including New
Jersey, are party to the settlement agreement
with Santa Fe.
The
Master Settlement Agreement of 1998 required
participating tobacco companies to make
substantial annual payments in perpetuity
to 52 states and territories, and imposed
significant marketing and advertising restrictions
on the companies. Since the agreement 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.
In addition to New Jersey, 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 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.
Santa
Fe Natural Tobacco Company is based in Santa
Fe, New Mexico. The Santa Fe settlement
was handled on behalf of the state by Deputy
Attorney General Cathy A. Melitski, of the
Division of Law's Tobacco Litigation Section.
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