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For immediate release -- Friday, December 22, 2006.
Contact Bob Brammer -- 515-281-6699

Iowa Share is $466,000 in Settlement with Tobacco Company

Payment results from $55.4 million nationwide agreement with House of Prince and an affiliate, Scandinavian Tobacco.

Des Moines.   Iowa’s share of a nationwide $55.4 million tobacco payment settlement is expected to be over $466,000, the Iowa Attorney General’s Office said today.

The multi-state settlement resolves a three-year dispute over whether cigarettes manufactured by “Scandinavian Tobacco SIA” and sold in the U.S. from 1999 to 2003 were subject to the 1998 Tobacco Master Settlement Agreement payment requirements.

The Master Settlement Agreement (MSA) requires participating tobacco manufacturers to make annual payments to the states, in part to compensate the states for billions of dollars in health care costs associated with treating tobacco-related diseases under state Medicaid programs. Iowa’s share of MSA payments from all companies is about $40-50 million per year.

The MSA also created a broad array of restrictions on the advertising, marketing and promotion of cigarettes. For example, the MSA prohibits targeting youth in cigarette advertising, and it restricts outdoor cigarette advertising, advertising cigarettes in public transit facilities, and using cigarette brand names on merchandise, among other limitations.

The multi-state settlement was with “House of Prince A/S” and its affiliate, Scandinavian Tobacco, S.I.A. Cigarettes made by Scandinavian Tobacco have not been sold in the U.S. since 2003.

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On the Web: www.IowaAttorneyGeneral.org.