On Thursday, a federal judge made his final decision on a case brought up by the tobacco industry. The case entailed the ruling put into effect in June putting preventions on the advertisement of cigarettes. Many tobacco companies fought the ruling saying that it was preventing their freedom of speech, but the judge ruled in favor of the defendant meaning the act will stand. By not allowing the cigarette companies to promote their product in whatever way they please, they are hurting the overall sales of the industry. Those people that might have been enticed by the promotions will never begin buying the cigarette products, lowering the overall sales of the companies.
A court ruled Friday that 3 of the main tobacco companies no longer had to pay money to tobacco growing states from a settlement that occurred in 1999. The settlement claimed that the companies had to pay $5.15 billion to tobacco growing states through 2010. Since the companies no longer have to pay that settlement, they can invest in other ways to grow the industry. Considering that it is the top 3 companies, the entire industry should see a ripple effect by allowing these companies to keep their money. I expect a quick increase in the cigarette world.
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