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Big tobacco will pay an estimated $206 billion over the next several years to settle claims with 46 states, the District of Columbia and five U.S. territories.
Locally, cigarette prices have increased because of the settlement, but smokers continue to purchase cigarettes anyway.
"They raised (the prices) up. The thing that people don't realize is tobacco is a business. They have to make money to stay in business," said Dewayne Wood, owner of Low-Bob's of Warsaw.
"They're still buying (cigarettes). Some are going to a lesser brand."
Sheryl Matthews, manager of Discount Tobacco Outlet, agreed. She said, "Of course, everything went up. It hasn't affected our sales at all."
Matthews said when the settlement hit the news, people scrambled to buy cartons of cigarettes before the price increased. She said people came in with boxes to fill full of cigarettes.
"We heard a lot of grumbling. They all grumble and say they're going to quit," she said.
Wood said that compared to other states, Indiana cigarettes are still cheap. Last year, he said, cigarettes averaged $2 a pack in Indiana. This year, cigarettes average $2.50 a pack.
Matthews said a full-price pack this year averages $2.33. Last year, she said, a pack went for $1.50 average.
In Michigan, Wood said, cigarettes average $3.50 a pack.
He said other forms of tobacco like snuff and cigars were not involved in the multi-billion dollar settlement and their prices have not been affected. Cigarette smokers have not turned to the other tobacco forms, though, he said.
Matthews said some customers are finding alternatives to buying name brands.
"They're buying more of the cigarette tobacco so they can roll their own," she said.
Whether or not the prices have leveled off will not be seen until the beginning of the new year, Matthews said. In January, contracts for tobacco sales will be up for renewal.
"I think it's leveled off but everyone's waiting to the start of the new year," she said. "We'll have to wait to see if (the prices) stay the same. Nobody knows. Nobody is talking."
The big three tobacco companies are Phillip Morris, RJ Reynolds and Brown & Williamson.
"It depends on what kind of game they want to play at the beginning of the year," Matthews said.
Regardless of whether or not prices rise in 1999, the Campaign for Tobacco-Free Kids says the settlement does not go far enough.
Information released by the Campaign says, "This agreement does not establish FDA authority over tobacco products, provide protections from environmental tobacco smoke, implement a significant price increase to discourage youth consumption, hold the tobacco industry accountable if youth tobacco use does not decrease, strengthen restrictions on youth access to tobacco, eliminate many advertising and marketing tools used by the tobacco industry to makes its products appealing to children, nor provide transition assistance for tobacco growers."
Joel Spivak, of the Campaign for Tobacco-Free Kids, said, "What we're interested in primarily is getting some sort of national tobacco control policy."
He said in the original 1997 negotiations, the Campaign was part of the bargaining team. The 1997 agreement didn't pass and the Campaign wasn't involved in the new agreement.
"We were not involved in the negotiations that resulted in the current settlement," he said.
Since Congress declined to pass the tobacco control legislation in 1997, the Campaign information said, more than 500,000 youth have become regular smokers.
The Campaign also said, "If Congress uses this agreement as an excuse not to exercise its responsibility to enact tobacco legislation this coming year, it will be a tragedy."
