Master Settlement Agreement

In November 1998, Montana joined 45 other states in signing the Master Settlement Agreement (MSA) with the nation’s largest tobacco companies.

The settlement resolved a lawsuit brought by the states seeking to enforce their laws and to recoup hundreds of millions of dollars the states spent on Medicaid-funded care for people suffering from tobacco-related illnesses.

It contained two critical components: restrictions on tobacco marketing and annual payments to states.

The MSA’s goals were to reduce youth smoking, promote public health and provide states with financial relief.

Montana is one of the only states that, by resolution of its voters, embraces these goals.

Montana uses the majority of its MSA income – $35.5 million in 2009 – for its intended purposes – improved health and tobacco disease prevention.

• Prohibits direct or indirect targeting of youth in advertising, marketing and promotion of tobacco products.
• Bans cartoons in tobacco marketing, advertising or promotion.
• Prohibits brand name sponsorship of concerts, football, basketball, baseball, soccer, and hockey events, or other events with a significant percentage of youth participants or youth audience.
• Limits brand name promotion to one event per 12-month period.
• Prohibits outdoor advertising of tobacco products, except signs limited to 14 square feet where tobacco products are sold.
• Prohibits transit ads on or in public or private vehicles.
• Outlaws payments for product placement in movies and other entertainment media.
• Prohibits distribution of tobacco brand-name merchandise, except in limited situations.
• Prohibits distribution of free samples, except in adult-only facilities, and gifts to youth in exchange for proofs of purchase.
• Bans agreements among tobacco companies to suppress health-related research and product development and misrepresentation of fact regarding the health consequences of using tobacco products.