Great job, Garnet. You've got the basic premises down pat - but some of the details are slightly off.
The MSA has nothing to do with the federal government, it is only with 46 of the 50 states, it was between 40 and 45 cents per pack, not 60 cents, and the new companies are still able to sell their products for less.....although PM is trying to change that. A carton of Marlboro goes for $24 in these parts, the brand I buy (when I buy them) goes for less than $13.
There has been a copy of the MSA under my desk ever since I was able to get my hands on it in 1999. I have never worked for a tobacco company, but have been fighting bans & taxes and associated crapola since 1986 or '87.
Hi,
You got me. I was generalizing. It's good you corrected me. I was speaking from memory, and then I accidentally found an article today that explains and updates the MSA in detail. It also details the progress of the small independent Jeffrey Uvezian, International Tobacco Partners, in challenging the settlement. It's at http://www.smokersclubinc.com/modules.php?name=News&file=article&sid=1042 and the story is from Forbes.
You're right....and I should have specified it was the state Attorney Generals, but the price increase was across the board from the tobacco companies and had the same effect as an excise tax to the consumer. The original increase was $.45, then $.18 the next year, and $.19 more the year after that. So, two years after the settlement, the price increase total was $.82 per pack of cigarettes to the tobacco manufacturers!
Wow, you've been at this far longer than I have, but I remember reading about the MSA in the news. I was working for a financial investment firm at that time, and I didn't know anything about these issues. I just knew I was irritated about the way smokers were being treated, didn't like having to go outside for a cigarette and refused to apologize to anyone for smoking.
Which group do you know me from? I looked at your profile, (love the Cookie Monster) but that didn't tell me. BTW, I entered my profile on this site now too. If you would prefer to e-mail me personally, that's fine.....but I'm really curious. Also, thanks again for the warm welcome you and Texas Cowboy gave me yesterday.