Stagnito Media Convenienece Store News Convenienece Store News Single Store Owner Progressive Grocer The Gourmet Retailer Progressive Grocer Store Brands Retail Leader hispanic
 
Nov 28, 2012

Tobacco Cos. Must Admit Deception on Products, Ads

PrintTobacco Cos. Must Admit Deception on Products, Ads  

WASHINGTON, D.C. -- Major tobacco companies have been ordered by a federal judge to admit they lied about the dangers of cigarettes -- and use their own money to pay for the public advertising campaign.

The ruling sets out what might be the harshest sanction to come out of a case that the Justice Department brought in 1999 accusing the tobacco companies of racketeering, according to Reuters.

U.S. District Judge Gladys Kessler wrote that the new advertising campaign would be an appropriate counterweight to the companies' "past deception" dating to at least 1964. The advertisements are to be published in various media for as long as two years.

The tobacco companies could appeal Tuesday's ruling. The details of the ads, including the costs and which media will be involved, are still being worked. Once determined, the details could lead to another prolonged fight, the news agency reported.

In her ruling, Kessler looked to finalize the wording of five different statements the companies will be required to use. For example, one statement begins: "A federal court has ruled that the defendant tobacco companies deliberately deceived the American public by falsely selling and advertising low tar and light cigarettes as less harmful than regular cigarettes."

Another statement includes the wording: "Smoking kills, on average, 1,200 Americans. Every day."

The largest cigarette companies in the United States spent $8.05 billion in 2010 to advertise and promote their products, down from $12.5 billion in 2006, according to a report issued in September by the Federal Trade Commission.

"We are reviewing the judge's ruling and considering next steps," Bryan Hatchell, a spokesman for Reynolds American Inc., told Reuters. Philip Morris USA, a unit of Altria Group Inc, is studying the decision, a spokesman said.

A spokesman for a third major defendant, Lorillard Inc., had no immediate comment.

Kessler's ruling considered whether the advertising campaign, known as corrective statements, would violate the companies' rights, given that the companies never agreed with her 2006 decision that they violated racketeering law. However, she concluded the statements were allowed because the final wording is "purely factual" and not controversial.

In August 2006, Kessler found that cigarette makers needed to be punished for deceiving the public about the dangers of smoking, as CSNews Online previously reported. Her ruling came at the conclusion of a nine-month trial. The ruling also ordered tobacco companies to stop labeling cigarettes as "low tar," "light," "natural" or any other "deceptive brand descriptors which implicitly or explicitly convey to the smoker and the potential smoker that they are less hazardous to health than full-flavor cigarettes.

 








Find Reports & Data

CSNews’ 2013 Realities of the Aisle Consumer Study

When it comes to c-store shopper research, Convenience Store News' Realities of the Aisle is in a class by itself. .

CSNEWS 2013 INDUSTRY FORECAST STUDY

The 2013 Convenience Store News Industry Forecast Study projects a fairly optimistic view of business conditions for convenience store retailers this year despite the nation’s fiscal problems..

CSNEWS' 2012 TECHNOLOGY STUDY

A new crop of next-generation technology, including social media analysis, mobile payments and mobile applications (apps), is getting retailer attention, according to the Convenience Store News’ exclusive 2012 Technology Study..

CSNEWS 2012 FOODSERVICE STUDY

Nearly two-thirds of convenience store operators expect to see their foodservice sales increase this year compared to 2011, according to Convenience Store News’ exclusive 2012 Foodservice Study..

CSNEWS' 2012 INDUSTRY REPORT STUDY

The convenience store industry achieved several new sales peaks last year, but rising operations costs and continued volume declines in fuel and cigarettes made the climb difficult..

CSNEWS' 2012 REALITIES OF THE AISLE CONSUMER STUDY

When it comes to c-store consumer research, CSNews’ 2012 Realities of the Aisle is in a class by itself..



SUBSCRIBE TO E-NEWSLETTER SUBSCRIBE TO E-NEWSLETTER


ADVERTISEMENT
Product Spotlight


Curtis' Primo Cappuccinoâ„¢ with Space Saving Open "Up" Door
Maximize profits and free up valuable counter space with the Curtis Primo Cappuccino™ Specialty Drink Dispenser.
 
Featured Videos

Loading...
Playlist

View more


Related Videos
pie
Online Poll
» May
Which of these issues currently before the Food & Drug Administration has you most worried?
Vote / See Results
Stagnito Media
570 Lake Cook Rd, Suite 310
Deerfield IL 60015
Ph: 224-632-8200
Fax: 224-632-8266

Privacy Policy
Print / Electronic Media
Convenience Store News
CSNews Supplier Guide
CSNews for the Single Store Owner
Progressive Grocer
Private Label ⇒ Store Brands
Independent Grocer Network
The Gourmet Retailer
Retail Leader
Marketing Guidebook
Directory of Convenience Stores
Events
Hispanic Retail 360

Custom Media