In general, punitive damages will be barred. Moreover, a cap is placed on future individual judgments based on about 33 percent of industry earnings. The terms of this 68-page Settlement are subject to approval by the boards of directors of the participating tobacco companies. Appendix I. Warnings in advertisements as to tar, nicotine and related matters are to cover 20 percent of the space occupied by press and poster advertisements. Even the type size is fixed.
Smaller advertisements require warnings in proportionately smaller type sizes.
The FDA is given authority to vary these requirements by 20 percent. Retail seller penalties can be imposed for individual unlicensed sales. They are subject to criminal penalties of fines and imprisonment and by corporate sellers by fines alone. These are in addition to any state or local penalties. Also, penalties for various license infractions are specifically set out and are graduated for the first through the 10th violation.