Partnering With The States
In November 1998, U S. Smokeless Tobacco Company became the only smokeless tobacco manufacturer to reach an agreement with 45 state attorneys general. Under this agreement, known as the Smokeless Tobacco Master Settlement Agreement (STMSA), the company adopted an array of marketing and advertising restrictions, and agreed to contribute to a national fund, the primary purpose of which is to fund programs to reduce youth usage of tobacco products.
U.S. Smokeless Tobacco Company today remains the only smokeless tobacco company in the country participating in this agreement.
Elements of U.S. Smokeless Tobacco Company's partnership with the states include the following:
- Providing up to $100 million to the American Legacy Foundation over a 10-year period. This foundation will use the money to conduct public education campaigns and other programs to reduce underage tobacco use and substance abuse.
- Advertising Restrictions
- No direct or indirect targeting of youth (persons under 18 years)
- No outdoor brand-name advertising (except retail signage under 14 square feet)
- No signs in arenas, stadiums, shopping malls, and video arcades
- No transit advertising - Promotional Restrictions
Only one brand-name sponsorship per 12-month period. No brand-name sponsorships of:
- Concerts
- Events in which youths are a significant portion of the audience
- Events in which paid participants or contestants are youths
- Football, baseball, soccer, basketball and hockey - No distribution of non-tobacco merchandise bearing the brand name, logo, or trademark of a tobacco product to the general public.
- No distribution of free samples, except in an adult-only facility or in conjunction with a tobacco purchase at retail.

