Philip Morris USA remains committed to the state settlement agreements we signed with the attorneys general and the states. We are committed to working cooperatively with the states and living up to our obligations under the agreements.
Youth smoking rates have declined. Since 1998, youth smoking rates have declined dramatically. While we are encouraged by the decline, youth smoking remains a serious issue. To continue to lower the rates of youth tobacco use, a great deal needs to be done by many people.
That's why we are committed to working with youth-serving organizations, parents, the public health community, policy makers, retailers, researchers, educators and others in this effort. To learn more, visit the
Helping Reduce Underage Tobacco Use section of this site.
Youth Smoking Rates
The MSA provides states with funding that is available for youth smoking prevention and other programs. It requires participating manufacturers to make ongoing payments to the states in perpetuity. Since 1997, PM USA has paid more than $42 billion to the states (MSA and previously settled states combined).
As the chart below shows, the states use MSA revenue from PM USA and other participating manufacturers for a variety of purposes.
The Centers for Disease Control has said that many states have not devoted adequate funding toward youth smoking prevention programs and we think they should. In 2008, the base amount available to the states through the Master Settlement Agreement increased by approximately $1 billion, for a total of $9 billion per year before adjustments. PM USA continues to believe states should use MSA funding to fund youth smoking prevention and smoking and health-related initiatives.
The agreements created fundamental changes in how tobacco products are advertised and marketed in the United States. The agreements include a variety of restrictions on the advertising and marketing of cigarettes or smokeless tobacco products, including prohibiting any participating manufacturer from taking any action, directly or indirectly, targeting youth in the advertising, marketing or promotion of tobacco products.
PM USA’s marketing approach is designed to minimize reach to unintended audiences – such as kids. Currently PM USA’s primary marketing channels include signage in stores and direct mail. In order to receive direct mail from PM USA, one must be a qualified adult tobacco user who has asked to be on our mailing list.
The industry also has changed. Not only have the original participating manufacturers (OPM) gone from four to three since the merger of R.J. Reynolds Tobacco Co. and Brown & Williamson, but the number of subsequent participating manufacturers (SPM) has increased to over 40, and the number of non-participating manufacturers (NPM) has also grown in number and market share.
Non-Participating Manufacturer's Market Share
