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OCR Page 1 of 69FOR SETTLEMENT DISCUSSION
PURPOSES ONLY 6/20/97 3:00 p.m.
PROPOSED RESOLUTION
PREAMBLE
This legislation would mandate a total reformation and restructuring
of how tobacco products are manufactured, marketed and distributed in this
country. The nation can thereby see real and swift progress in preventing
underage use of tobacco, addressing the adverse health effects of tobacco use
and changing the corporate culture of the tobacco industry.
The Food and Drug Administration ("FDA") and other public health
authorities view the use of tobacco products by our nation's children as a "pediatric
disease" of epic and worsening proportions that results in new generations of
tobacco-dependent children and adults. There is also a consensus within the
scientific and medical communities that tobacco products are inherently dangerous
and cause cancer, heart disease and other serious adverse health effects.
The FDA and other health authorities have concluded that virtually all
new users of tobacco products are under legal age. President Clinton, the FDA,
the Federal Trade Commission ("FTC"), state Attorneys General and public health
authorities all believe that tobacco advertising and marketing contribute
significantly to the use of nicotine-containing tobacco products by adolescents.
These officials have concluded that, because past efforts to restrict advertising and
marketing have failed to curb adolescent tobacco use, sweeping new restrictions
on the sale, promotion and distribution of such products are needed.
Until now, federal and state governments have lacked many of the
legal means and resources they need to address the societal problems caused by
the use of tobacco products. These officials have been armed only with crude
regulatory tools which they view as inadequate to achieve the public health
objectives with which they are charged.
This legislation greatly strengthens both the federal and state
governments' regulatory arsenal and furnishes them with additional resources
needed to address a public health problem that affects millions of Americans,
including most importantly underage tobacco use. Further, it is contemplated that
certain of the obligations of the tobacco companies will be implemented by a
binding, enforceable contractual protocol.
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