'Historic' tobacco settlement lights up critics

"This is not an industry the American people ... trust."
Former FDA Commissioner David Kessler

On June 20, 1997, Mississippi Attorney General Michael Moore hailed what he called "the most historic public health achievement in history."

The occasion: a settlement between the tobacco industry and the attorneys general of 40 states worth billions of dollars in exchange for the industry's immunity from future legal action.

Included in the terms of the settlement:

• The industry would pay $360 billion over the next 25 years, and $15 billion a year thereafter to compensate smokers and states for health costs attributed to smoking.
  
  
• The U.S. Food and Drug Administration would regulate nicotine, but could not ban the substance before 2009.
  
  
• Most cigarette advertising would be banned, and there would be specific restrictions on advertising directed at children.
  
  
• The sale of cigarettes through vending machines would be banned, and the industry would put frank warning labels on packages saying cigarettes are addictive and can kill.

But almost as soon as the ink on the agreement was dry, the sniping began.

Former FDA Commissioner David Kessler said the document should be examined for loopholes. "This," he said, "is not an industry that the American people, I think, can just trust."

Consumer advocate Ralph Nader warned that once the bill went through Congress, "You won't recognize it."

Sure enough, in July, Republican congressional leaders slipped a provision into the balanced budget agreement letting tobacco companies claim a $50 billion tax credit against the money they paid in the settlement.

The House and Senate later repealed the credit, but only after it was brought to the public's attention, causing considerable outrage.

In September, President Clinton demanded tougher provisions aimed at discouraging smoking among the young. There was talk of adding a $1.50 tax per pack. And Clinton said the FDA should have more power to regulate tobacco products.

Sen. Richard Lugar, an Indiana Republican, submitted a bill under which the industry would pay $15 billion to buy out some or all of the nation's 124,000 tobacco farmers and end government programs that have supported them for 59 years.

The industry has indicated it is not interested in paying any more than it has already agreed to pay, and nothing will be decided until Congress takes up the legislation next year.