The measure does not criminalize tobacco or limit the availability of tabacco products to adults.
But it will have a big impact on the way cigarettes are produced and sold -- particularly to young people.
President Obama says protecting children is what the bill is all about.
" Each day, 1,000 young people under the age of 18 become new, regular, daily smokers.
And alomost 90% of smokers began at or before their 18th birthday.
" The president says he knows the problem too well.
Mr.Obama noted that under the new law, the FDA can ban certain additives in cigarettes and restrict the marketing techniques used by tobacco companies.