US: Landmark Decision Creates Ad Bans

In a landmark decision the American tobacco industry agreed on 20 June to pay up to $368.5 billion and submit to federal regulation. The tobacco manufacturers said that rather than face the prospect of massive, hugely expensive and inordinately protracted litigation, they preferred accepting certain legislative and regulatory provisions. While both sides have reached an agreement, the deal must still be approved by the White House and Congress.

Key parts of the deal include:

• the industry agrees to become regulated by the Food and Drug Administration
• it will sharply curtail advertising and marketing of cigarettes, including bans on sponsorship and outdoor advertising
• it will acknowledge the health dangers of using tobacco

One of the most dramatic moves in the agreement is that the industry has agreed to be regulated by the FDA; the FDA will have the authority to reduce nicotine levels and after 12 years be able to seek to ban nicotine altogether.