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Settlement Reached with Tobacco Company

By Carrie Pond

Frankfort, KY – Kentucky, Illinois and Tennessee are 3 of the 42 states to reach a settlement with the Santa Fe Natural Tobacco Company. Kentucky Attorney General Jack Conway says the company violated the tobacco Master Settlement Agreement(MSA) by distributing decorative tin signs to consumers that featured its "Natural American Spirit" cigarettes brand name. Distribution of merchandise bearing the brand name of cigarette companies violates the MSA. That case imposed significant marketing and advertising restrictions on tobacco manufacturers. According to the settlement announced today, Santa Fe Natural Tobacco Company agrees not to distribute brand name merchandise in the future and to pay a penalty of $250 for every future violation of the agreement.