MGSC05H3 Lecture 2: Tobacco Endgame
Document Summary
Phillip morris was the single largest taxpayer and rjr was not far behind. There was an issue whether the industry should be paying for the healthcare costs, whether it should be regulated as a drug, to what extent it should be advertised. b - no ads with people or cartoons - tobacco would not fight fda regulations. No state lawsuits - no class action lawsuit - capon individual lawsuits - fda would delay regulations. ** b for medical care to 50 states that have to pay for patients with lung cancers due to tobacco usage. **they also agreed to not fight if the fda wanted to regulate it as a drug, to not use cartoon characters to market their product. **in return, tobacco received certainty going forward which was important for the industry. > b was a lot but they could raise the price per packet by a little over 60 cents and recover the loss.
