The Stealth Cartel

Big Tobacco has gone beyond wining and dining your elected officials,
Now they’re in bed together – -
and guess who’s getting screwed?!

The Stealth Cartel that Defeats the Free Market: Your state government is working hand-in-hand with Big Tobacco, through the conspiracy of the stealth partnership cleverly misnamed as the MasterSettlementAgreement.

The Attempted Justification for the Creation of the MSA: Big Tobacco negotiated the MSA with the Attorneys’ General of the 46 states, in an attempt to stop the numerous cases of tobacco litigation which were being filed in the 1990s in states across the country, against Big Tobacco, seeking damages for Big Tobacco’s prior knowledge, acts and omissions regarding the danger of cigarette smoking. Under the Big Tobacco Settlement (MSA), in exchange for a prohibition on smoking-related lawsuits, each participating state would receive annually, a direct payment from Big Tobacco representing a percent of their sales for the previous year.

The Reality of the MSA: What Big Tobacco and the Attorneys General actually created was not a “settlement” at all, but a conspiracy to establish an ongoing partnership between each of the 46 state governments and Big Tobacco, in that as Big Tobacco sales go – so goes the amount of the checks paid to each participating state governments.

The Collective Goal of this Stealth Cartel: This state government-Big Tobacco partnership is in reality, a Quiet Cartel, designed to create a de-facto monopoly for Big Tobacco to insure ever-spiraling sales (and ever-increasing rewards in the payments to the states each year) by destroying any and all independent competition or Citizen Consumer choice across the country and in your state.

How Big Tobacco Competes in the Free Market – by Destroying It: Immediately after signing the MSA, and in order to recoup all of the money which it projected would be paid to the states under the MSA (and then some) Big Tobacco raised their prices across the board. These price increases caused an unforeseen chain reaction in that, rather than pay the inflated prices of Big Tobacco, Citizen Consumers decided to purchase less expensive, independent/smaller company cigarettes.

The direct result of this decrease in Big Tobacco sales (and related increase in independent/small company sales), were substantial reductions in the amounts paid to the MSA states – as noted in the Confidential Memo (linked on our home page). Rather than accept the challenge of the free market and lower their prices in order to compete against these independent/small manufacturers/distributors, Big Tobacco and your elected officials chose to commence a conspiracy of silence by instituting a stealth campaign that is offensive and contrary to free-enterprise, the American Dream and the very foundation of our country’s government “By the People, for the People and of the People.”

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