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Save Lives, Not Tobacco The Coalition for Accountability

ACTION ALERT; November 12, 1998

Multi-State Tobacco Deal Reported To Be Imminent --

Public May Have NO Opportunity for Review or Comment Deal May Contain Special Protections for the Tobacco Industry

Tell Your Attorney General (and State Lawmakers, Local Media, and others):

"No Secret Deal for Big Tobacco"

"No Special Protections for Tobacco Companies"

According to various reports, a proposed agreement between the state Attorneys General and the tobacco companies that would settle the states' lawsuits against the industry is close at hand. We have heard that the 8 Attorneys General meeting in secret with the tobacco companies have reached a deal, and the proposed agreement could be sent to the other state AGs as early as tomorrow, Friday the 13th, although other sources say it might not be ready to go to the AGs until early next week. It is also reported that the AGs may be given less than a week to decide whether to join the multi-state settlement, and that the proposed deal maybe kept from the public until after the state AGs have decided whether or not to sign on.

No Secret Deal

It is unacceptable that the state AGs would keep the terms of this deal a secret from the public until after they have decided whether to settle their state's suit, yet we have heard that this is just what those negotiating the deal may try to do. The proposed settlement was negotiated behind closed doors by a group of eight state AGs (some of whom never even sued the tobacco companies) and the tobacco industry. While the negotiators are touting it as a public health measure intended to reduce tobacco use by children and compensate states for tobacco-related Medicaid expenses, information leaked out about the purported deal indicates that it is probably pretty weak at best, and may even contain concessions to the industry that are quite bad for public health. A secret deal means the public and advocacy groups would have no chance to review and comment on the proposed deal until it is too late.

No Special Protections

We are particularly concerned that the deal may contain special protections and favors for the tobacco industry, just like the June 20, 1997 deal did. Provisions in the multi-state proposal that preempt local government lawsuits or prevent state agencies from ever bringing any civil actions against the tobacco companies in the future -- even if a company violates a consumer protection law or other state law -- are special protections the industry does not deserve and should not get in any multi-state agreement. These kind of immunities will undermine the ability to achieve public health goals in the future. A deal that lets the tobacco companies continue doing "business as usual" while forcing taxpayers to continue to subsidize the industry by allowing the companies to pay just a fraction of tobacco-caused Medicaid costs is a bad deal that the AGs should oppose. (Smoking related Medicaid costs are estimated to be $12.9 billion a year nationally according to the March/April issue of Public Health Reports.)

There must be public review to ensure that the negotiating AGs haven't produced another sweetheart deal for the industry like the June 20 deal. The terms of this new proposed settlement should be released immediately and the public should be given at least 30 days for review and comment before any AG signs on. If it is good for public health, why keep it a secret? A rushed, backroom deal benefits the tobacco industry, not the public.

Suggested Actions

Call your Attorney General's Office. Attorneys General must be encouraged not to be rushed into signing a bad deal, and to solicit the input of public health, consumer and community groups before agreeing to settle the state's lawsuit against the industry as part of a multi-state deal. Ask your Attorney General to publicly disclose the proposed settlement immediately. Alert the Media. Many groups around the country are already planning to issue press releases or planning press events for Thursday, Friday or Monday to oppose the plan to keep the deal secret and/or to speak against their state's Attorney General signing on to the proposal. Editorial Boards will also be important; speak to editorial writers, especially about the need for thoughtful public review before the AGs sign or reject the proposal.

Contact State Legislators, Local Lawmakers and others. Like the Florida and Texas settlements, the proposed multi-state deal may preempt local government lawsuits and severely limit the ability of the state to seek civil penalties against the tobacco companies for future acts -- even if the tobacco companies violate state laws in the future. State and local lawmakers should be encouraged to contact the Attorney General's office to weigh in against these kinds of special protections, and call for immediate disclosure of the terms of the deal.

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