MGSC05H3 Lecture Notes - Lecture 2: Passive Smoking, Tobacco Industry, Whistleblower
Document Summary
Philip 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. Settlement: tobacco industry agreed to pay over 368 billion to 50 states (responsible for health care in the united states). In 1997 the gov"t were responsible for paying the healthcare for the most part. The gov"t were going to sue the tobacco industry so in the settlement they were going to pay billions of dollars to settle it. They also agreed to not fight if the fda wanted to regulate it as a drug, to not use a cartoon characters to market their product. What they got in return, the states would not sue tobacco for healthcare costs and that there would be a ban on class action lawsuits against them.
