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NAQC Newsroom: Research

MMWR: State Cigarette Minimum Price Laws

Friday, April 30, 2010  
State Cigarette Minimum Price Laws --- United States, 2009.
Centers for Disease Control and Prevention. MMWR. April 9, 2010;59(13):389-392.

While cigarette price increases reduce demand for cigarettes, cigarette manufacturers use trade discounts, coupons, and other promotions to counteract the effects of excise tax increases. State cigarette minimum price laws typically require a minimum percentage markup to be added to the wholesale and/or retail price. This article reports the status of cigarette minimum price laws in the United States. As of December 31, 2009, 25 states had minimum price laws in effect. The authors conclude that minimum price laws can help prevent trade discounting from eroding the positive effects of state excise tax increases and higher cigarette prices on public health.

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