[lockjaw02]

Actually, the tobacco cos have already lowered their prices and will do so again once they no longer have to fund ALF. In Virginia, with only a 2.5¢ state levy on cigarettes, the price of premium brands of the big tobacco cos like Marlboro, Camels, and Pall Mall are only in the $15 to $22 range in outlets not subject to city tobacco taxes. That is not significantly different than the non-participatory cos.

They have to in order to compete and preserve market share. Like Just Another Joe identified, the tobacco cos were allowed to pass 100% of the costs of their "settlement" to customers, which added up to about 35¢-40¢ a pack or $3.50-$4.00 a carton. The only way they could do that was for the states to enact laws forcing non-participatory companies to put a corresponding percentage of their profits into escrow accounts for 25 years. The non-participatory cos found a way to get most of their escrow money back, by just doing business in a few states and not going national. New, smaller cos are springing up all over the place, and the big boys are losing considerable market share and profits.

[RS]

"Actually, the tobacco cos have already lowered their prices and will do so again once they no longer have to fund ALF"

Having quit 20 years ago, I don't follow the prices that much so you could be right, but I dont see that tobacco companies lowering prices out of the goodness of their hearts since they dont have to pay ALF any more... They MAY do it to regain market share as you say, but that is a corporate marketing decision - they don't HAVE to.