Attorney General Clark Announces $22 Million from Ongoing Settlement with Tobacco Manufacturers and Calls for Greater Scrutiny of Vape Market

Attorney General Charity Clark today announced that Vermont received a total of $22,103,714.56 from tobacco manufacturers under the tobacco Master Settlement Agreement (MSA). Annually, Vermont receives monies from tobacco manufacturers from the MSA, which resolved the State's lawsuit filed in the 1990s. The settlement funds are credited to the State's Tobacco Fund, and the Legislature determines how they are spent.

"As your Attorney General, I am committed to carrying forward Vermont's legacy of leadership against Big Tobacco and the growing nicotine and vape market addicting the next generation," said Attorney General Charity Clark. "My office will continue pursuing enforcement action against companies that profit off addicting our communities."

On November 23, 1998, Vermont's Attorney General and 46 states and territories Attorneys General signed the MSA with the four largest cigarette manufacturers in the United States, including Philip Morris and R.J. Reynolds. The MSA settled lawsuits brought by the Attorneys General for violating consumer protection laws and to recover health care costs associated with treating smoking-related illnesses. To date, more than 45 tobacco companies have joined the MSA. As a leader in this effort, Vermont has received more than $840 million from the tobacco companies since 1998.

The MSA imposes significant restrictions on the participating tobacco manufacturers' advertising and marketing practices, like marketing to children, and requires them to pay the settling states billions of dollars each year in perpetuity so long as cigarettes are sold in the United States. To date, over $175 billion has been distributed to the settling states.

In Vermont, Attorney General Clark is supporting legislation that would ban vapes that are designed to look like toys or school supplies or gaming devices. These products are designed to be attractive to youth and easy to hide from adults. The bill (S.198) would also update Vermont's laws to recognize the increased use of nicotine pouches and other tobacco substitutes. With the nicotine and vape market continuing to grow, it is crucial that the Legislature take action to reign in its harmful effects before the next generation of Vermont kids become addicted.

Attorney General Clark has continued Vermont's legacy of leadership against Big Tobacco. In 2024, Attorney General Clark was appointed co-chair of the National Association of Attorneys General's (NAAG's) "Tobacco Committee," a position she continues to hold. As co-chair, Attorney General Clark leads a bipartisan, national group of attorneys general in their efforts to enforce, defend, administer, and improve the tobacco Master Settlement Agreement (MSA). Importantly, the Tobacco Committee also provides leadership for all members on tobacco matters not directly related to the MSA, including vaping, at a national level.

Vermonters who are aware of underage sales of tobacco or nicotine products may file a report with the Attorney General's Office.

More information regarding the MSA and its provisions are available on our website. Resources on quitting tobacco, vaping, and nicotine are available through the Department of Health.

CONTACT: Amelia Vath, Senior Advisor to the Attorney General, 802-828-3171