October 11, 2006

            LANSING - Attorney General Mike Cox today announced that he and the Attorneys General of 38 other states have entered into a settlement with R.J. Reynolds Tobacco Company that immediately ends the sale of its candy, fruit, and alcohol flavored cigarettes in the United States.  The Attorneys General had asserted that Reynolds was violating the 1998 tobacco Master Settlement Agreement's prohibition on targeting youth, and that it did so through its advertising, marketing, and promotion of flavored cigarettes. 

            In reaction to today's settlement Cox stated, "Earlier agreements to ban the use of cartoon figures such as the Joe Camel character have caused tobacco companies to come up with other ways to lure young smokers into a lifetime of addiction.  Flavored cigarettes are most likely to attract first-time smokers, 90% of whom are teens.  This agreement represents another positive step in preventing Michigan children from becoming addicted to tobacco."

            Cox's office was active in contributing research and sales data that helped to confirm the scope of the flavored cigarette problem.  Among the evidence that led the Attorneys General to conclude that Reynolds was targeting youth was:

·     The use of candy, fruit, and alcohol flavors with high youth appeal;

·     The use of advertising and packaging with graphics, typography, colors, styles, and themes that were enticing to youth; and

·     The use of Scratch and Sniff and Lift and Sniff promotional cards scented with sweet, candy aromas, but with no actual scent of tobacco. 

            In May 2006, Cox signed a letter along with Attorneys General from a large group of states indicating an intention to sue R.J. Reynolds within 30 days if the company did not cease and desist from its practices.  Today's settlement agreement is directly attributable to the states' decision to send that letter.

            Under the settlement, Reynolds agreed to a ban in the United States of its flavored Camel Exotic Blend, Salem Silver, and Kool Smooth Fusion cigarettes, which were sold under such brand names as "Mandarin Mint," "Mandalay Lime," "Blackjack Gin," "Cool Myst," and "Midnight Berry."  The agreement also imposes significant marketing restrictions that will make it virtually impossible for Reynolds to market flavored cigarettes to youths and will apply to any cigarettes manufactured by Reynolds in the future that have a characterizing flavor other than tobacco or menthol.

            Joining Attorney General Cox in today's settlement are the Attorneys General of Alabama, Alaska, Arizona, Arkansas, California, Connecticut, Delaware, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Utah, Vermont, Washington, West Virginia, Wisconsin, and Wyoming.  The Commonwealth of the Northern Marianas Islands, a former U.S. territory, also joined the settlement.

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