While some state attorneys general are celebrating the 10-year anniversary of a landmark tobacco settlement, a free enterprise group is using the opportunity to publicize its stance against it.

The Competitive Enterprise Institute released a youtube.com video Wednesday that calls the Master Settlement Agreement unconstitutional and argues that it helps big tobacco companies maintain their edge over upstarts.

"The tobacco Master Settlement Agreement is a corrupt, unconstitutional agreement between state attorneys general and Big Tobacco," said Sam Kazman, CEI General Counsel. "It represents the highpoint of using lawsuits and settlement agreements to impose new taxes and regulations on citizens, and it should be halted by the courts."

The CEI is challenging the deal, which was finalized Nov. 23, 1998. The MSA has an estimated worth of $246 billion over its first 25 years for 52 participating states and territories. More than 40 companies have signed into it.

The video depicts a state attorney general and an executive from a large tobacco company negotiating prior to the deal.

"You realize with less competition... higher prices... smokers, our customers, are gonna get screwed," the tobacco executive says.

"They're smokers. They deserve to get screwed," the state attorney general says.

"But -- you know -- is it constitutional?" the tobacco executive says.

"Hey, for $250 billion dollars, we can screw the constitution too," the attorney general says.

As the two celebrate with a cigar, a voiceover says any agreement among the states must be approved by Congress. The MSA was never voted on.

The CEI is also helping a challenge of the deal in federal court.

Meanwhile, some state attorneys general have made it a point to celebrate the anniversary.

"The past ten years have changed the way society views tobacco use," Maryland Attorney General Doug Gansler said.

"Ten years ago, Joe Camel was everywhere and the Marlboro Man was riding shotgun. We can measure the power of the MSA's protections with each and every Marylander who lives longer and healthier because Big Tobacco was not allowed to entice her or him to start smoking as a child."

Since the agreement, attorneys general have targeted the marketing practices of some tobacco companies. They also successfully petitioned the Motion Picture Association of America, which now takes the presence of smoking into account when rating a movie.

Also targeted has been mail-order cigarette sales.

Another suit challenging the agreement was recently filed by a smaller tobacco company that claims it can not compete with the larger ones.

From Legal Newsline: Reach John O'Brien by e-mail at john@legalnewsline.com.