Tobacco Master Settlement Agreement - Summary of Terms

Summary of Terms

The Original Participating Manufacturers (OPMs) agreed to several broad categories of conditions:

• to restrict their advertising, sponsorship, lobbying, and litigation activities, particularly as those activities were seen as targeting youth;
• to disband three specific "Tobacco-Related Organizations," and to restrict their creation and participation in trade associations;
• generally to make available to the public documents the OPMs had disclosed during the discovery phase of their litigation with the settling states;
• to create and fund the National Public Education Foundation, dedicated to reducing youth smoking and preventing diseases associated with smoking.
• to make annual payments to the settling states in perpetuity.

A section on enforcement gave jurisdiction to individual state courts to implement and enforce the term, and established a state enforcement fund ($50 million one-time payment). The participating manufacturers also paid the states' Attorney Fees.