In-Store Signage Settlement
Last Updated: December 13, 2024
The Issue
Altria, RJ Reynolds, and ITG Brands reached an agreement in litigation brought by the U.S. Department of Justice and certain public health organizations regarding the communication of tobacco-related messaging at retail locations. The agreement covers the last remaining dispute from the lawsuit DOJ filed against the manufacturers in the 1990s.
On December 6, 2022, the U.S. District Court for the District of Columbia formally approved the settlement agreement. The agreement resolves long-running litigation over the communications of tobacco-related messaging at retail locations.
Retail Impact
The agreement requires manufacturers to supply signs to stores and require those stores that have contracts with any of the three manufacturers to post the signs for a total of 21 months.
The agreement specifies 17 different health messages that have been distributed to retailers throughout the U.S. by manufacturers. Each store under contract with one of the manufacturers must post at least one sign and some need to post more than one sign. The manufacturers have retained auditors to check whether the signs are properly posted.
The order went into effect on July 1, 2023, and corrective statements had to be posted starting October 1, 2023. The signs have now been rotated and must continue to be posted through July 1, 2025.
NACS Position
NACS spent 17 years fighting any signage requirement through the litigation process and, along with the National Association of Tobacco Outlets, also participated in the negotiations that led to the agreement in order to advocate for retailers.
All tobacco companies are working with NACS to try to resolve questions that come up and make implementation work as well as possible for retailers.
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