ELI5: Explain Like I'm 5

Tobacco MSA (Alabama)

Have you ever heard about tobacco or seen someone smoking a cigarette? Well, in the state of Alabama, there was a big disagreement between the government and the big tobacco companies. The government believed that these companies were marketing their products in a harmful way and causing health problems for people who use tobacco.

In order to settle this disagreement, the government and the big tobacco companies made a big agreement called the Tobacco Master Settlement Agreement (Tobacco MSA for short). It was like a deal that both sides agreed to follow. The agreement stated that the tobacco companies would have to pay money to Alabama's government every year in order to help pay for the health problems caused by tobacco. This money is called a settlement payment.

The Tobacco MSA also had other rules that the tobacco companies needed to follow. They were not allowed to market their products to kids, they had to be truthful in their advertising, and they had to make their products less harmful. The government also agreed that they would not sue the tobacco companies for any past wrongdoing related to tobacco.

In return for making this agreement, the tobacco companies were allowed to keep selling their products in Alabama. However, they had to follow all the new rules in the Tobacco MSA.

So, think of it this way: the government and the tobacco companies had a big fight about tobacco, but they decided to make a deal called the Tobacco Master Settlement Agreement. The tobacco companies have to pay money and follow new rules to make their products less harmful, and in return, the government won't sue the tobacco companies for past mistakes.