A Montana lawmaker and vape shop owner, Rep. Ron Marshall, has filed a federal lawsuit against major tobacco companies, accusing them of illegal lobbying activities.
The lawsuit claims that corporations like Altria Group and R.J. Reynolds Tobacco Company are violating the 1998 Tobacco Master Settlement Agreement while monopolizing the vaping market through a regulatory process controlled by the Food and Drug Administration (FDA).
The allegations
Marshall’s lawsuit asserts that tobacco industry lobbyists are working against legislation meant to restrict youth access to vaping products while simultaneously pushing an FDA registry that only permits their own products to be sold.
He also accuses Montana Attorney General Austin Knudsen of failing to enforce state laws due to financial contributions from these companies during and after the 2024 election cycle. Filed under the “private attorney general doctrine,” the lawsuit seeks reimbursement of legal fees if successful.
Concerning violations
The lawsuit points to violations of the 1998 Tobacco Master Settlement Agreement, which prohibits certain lobbying and marketing activities, particularly those targeting youth. The agreement also mandates annual reports on lobbying efforts in Montana, which Marshall claims the tobacco companies have failed to submit.
Marshall alleges that tobacco industry lobbyists, including Mark Baker (representing Altria and NJOY) and Edward Redding (representing Reynolds and Reynolds Vapor), actively lobbied against his proposed House Bill 149. This bill aims to:
- Regulate vending machine sales of vaping products,
- Introduce licensing and inspections for tobacco retailers,
- Increase fines and suspensions for illegal tobacco sales.
Although HB 149 passed committee by a narrow 11-9 party-line vote, it has stalled on the Montana House floor since January 28, allegedly due to opposition from big tobacco lobbyists.
Registry controversy
Marshall argues that while tobacco lobbyists stall his bill, they are pushing an alternative measure—an FDA registry law that would permit only FDA-authorized vaping products in Montana. He claims that the only products receiving FDA authorization are manufactured by large tobacco companies, effectively creating a monopoly.
The lawsuit highlights concerns about LC1706, a draft bill that would establish a state registry of FDA-authorized vaping products. Speaker of the House Rep. Brandon Ler (R-Savage) requested the bill, though it has not yet been introduced. If enacted, the bill would limit Montana vape sales to the 34 products currently authorized by the FDA.
Opponents argue that only large tobacco companies can afford the costly and time-consuming FDA authorization process. Some estimate that up to 99% of independent manufacturers would be forced out of the market, giving big tobacco full control over what consumers can buy.
Misleading claims
Marshall’s lawsuit also challenges the idea that FDA “authorization” implies product safety. He notes that while some use the term “approved,” the correct legal term is “authorized.”
According to FDA research and policy statements, “There is no safe tobacco product,” and the agency discourages e-cigarettes as an alternative to smoking. To receive FDA authorization, products must:
- Contain no flavored nicotine vape fluids,
- Avoid marketing as a safer alternative to cigarettes,
- Be non-disposable.
Marshall cites studies from the Yale School of Public Health suggesting that limiting vaping options could push youth toward cigarettes or other tobacco products, both of which are sold by major tobacco companies.
Conflict of interest
The lawsuit points out that the Master Settlement Agreement does not specify penalties for non-compliance. As a remedy, Marshall’s legal team from Orr McDonald Law in Missoula is asking federal Magistrate Judge Timothy Cavan to ban big tobacco lobbyists from the Montana Capitol until they file the required lobbying reports.
Additionally, the lawsuit accuses Attorney General Knudsen of a conflict of interest, citing financial ties to Altria and Reynolds.
“Knudsen has an inextricable conflict of interest by virtue of the fact that both Altria and Reynolds were ‘platinum’ sponsors of his Jan. 11, 2025, inauguration party,” the lawsuit states. It further claims that a Jan. 28, 2025, op-ed by Knudsen in Montana Newsroom echoes talking points from tobacco lobbyists and suggests he is failing to enforce the settlement agreement.
Next steps
When contacted by The Daily Montanan, the Montana Attorney General’s Office declined to comment. The lawsuit could have significant implications for the regulation of vaping products and the influence of major tobacco companies in state politics.
If successful, the case may not only impact vaping regulations in Montana but also set a precedent for other states grappling with similar concerns over industry influence and market control.
