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CEI challenges 1998 state tobacco settlement

Today in the Western District of Louisiana, the Competitive Enterprise Institute filed a lawsuit "on behalf of a distributor; two small tobacco manufacturers; a tobacco store; and an individual smoker" against Louisiana's attorney general, challenging the settlement as a violation of the "compact clause" of the U.S. Constitution, article I, section 10. The CEI press release explains:

The Compact Clause was meant to prevent states from collectively encroaching on federal power or ganging up on other states. The tobacco settlement set up a national government/tobacco cartel that harmed consumers and small businesses by increasing cigarette prices and restricting competition.

You can read the complaint here (PDF). More on CEI's views on the "Abuses of the Government-Tobacco Cartel" is available on its "Control Abuse of Power" website.



Rafael Mangual
Project Manager,
Legal Policy

Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.