Thursday, December 3, 1998
Tobacco
LAWSUIT: Cigarette prices will be jumping substantially over the
next month – and that’s got some consumers
hopping mad
By Jakub Oleksy
Daily Bruin Contributor
Smokers across the nation are paying more for their
addiction.
A significant hike in cigarette prices is the consequence of a
$206 billion settlement between 46 states and the tobacco industry,
approved on Nov. 20.
In order to pay this large sum, tobacco companies such as Philip
Morris – maker of Marlboros, among other brands – have increased
prices on cigarette packs by 45 cents.
With retailers adding an extra 5 cents, consumers are now paying
50 cents more per pack.
"Smoking causes health problems and (the tobacco companies)
should pay for that," said Peter Park, a first-year computer
science and electrical engineering student who is a smoker. "If
they have to increase prices to do so, so be it."
Despite such an attitude by many smokers, tobacco sales are
dropping across the country.
In Westwood, tobacco sales have seen a dramatic decrease since
the settlement was approved.
"Cigarette business is extremely slowed down," said Atila
Helvaci, manager of the Westwood 7-Eleven. "People are resenting
the increased prices."
The increase is the largest cigarette price hike in history and
is larger than originally predicted by analysts.
Originally, experts predicted a 35- to 40-cent increase in
prices per pack.
The 46 states unanimously approved the landmark settlement with
the five major tobacco companies. Florida, Minnesota, Mississippi
and Texas passed separate settlements earlier.
California was given nearly $24 billion over the 25-year period
in the deal, of which $312 million is being given to the city of
Los Angeles.
The original purpose of this money was to fund anti-smoking
programs throughout each state, but officials in Los Angeles
disagree over where they believe the money should go.
City Attorney James Hahn said that the money should be used to
fund tobacco-related issues and programs and not be put in the
general city fund.
Major Richard Riordan sees things differently.
"This is a golden opportunity for the city to make improvements
that have been put off for too long, and improve the quality of
life of our older neighborhoods," Riordan said.
Hahn’s proposal for the money includes programs to curtail youth
smoking, licensing tobacco retailers, and for public education on
second-hand smoke.
Riordan argued that programs are already in place that will
provide more money for anti-smoking projects.
Narrowly passed in the Nov. 3 general election, Proposition 10 –
a measure that adds a 50-cent tax on tobacco in order to fund
childhood development programs – will provide more money for such
programs.
With the increase of cigarette prices totalling $1 since
November, many students are becoming frustrated.
"Smokers are just more agitated with this increase," said David
Jeong, a first-year computer science and engineering student.
Aside from the financial compensation, companies agreed to give
up billboard advertising, cartoons in ads, branded merchandise
sales, and other advertising tactics found to be appealing to
children.
Whatever benefits come from the settlement for Californians,
smokers are already feeling the weight of this settlement on their
pockets.
Not all smokers, however, are criticizing the deal outright.
"It makes me unhappy, but its understandable," Jeong said. "We,
the smokers, have to take responsibility for what we are doing to
our own health."
With reports from Bruin wire servicesDAVID HILL
The recent settlement of 46 states’ lawsuits against the tobacco
industry has already forced students to pay 50 cents more for their
smoking habit. Starting Jan. 1 Proposition 10’s 50-cent tax on
cigarettes will also take effect.
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