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August 2006

News & Media

U.S. Court Rules Against Tobacco Company Marketing Practices 
August 21, 2006 

WASHINGTON – A U.S. federal judge has handed down “the most punishing” ruling against the U.S. tobacco industry and is demanding a laundry list of corrective advertising measures, reports AdAge.com.

Stemming from a 1999 lawsuit filed by the Clinton administration against U.S. tobacco companies, Judge Gladys Kessler of the Federal District Court for the District of Columbia ruled on August 17 that tobacco company marketing practices are in violation of federal anti-racketeering laws and that they can no longer refer to cigarettes as being “low tar," "light," "ultra light," "mild" or "natural.”

The judge also demanded that tobacco companies fund advertising campaigns by purchasing monthly full-page ads in the Sunday editions of more than 24 major U.S. newspapers, running 15-second television ads once a week during prime time for one year that communicate the corrective measures, and changing in-store signage and product packaging.

Meanwhile, Philip Morris and its parent company, Altria Group, issued a press release stating that it will seek review of Judge Kessler’s ruling.

“Philip Morris USA and Altria Group Inc. believe much of today's decision and order are not supported by the law or the evidence presented at trial, and appear to be constitutionally impermissible or infringe on Congress’s' sole right to provide for the regulation of tobacco products,” said William S. Ohlemeyer, Altria Group vice president and associate general counsel, in the release.   

“Moreover, the conclusion that PM USA and Altria are reasonably likely to engage in future wrongdoing is flawed in light of the profound and permanent changes in the way cigarettes are marketed today, including requirements imposed by agreements with the state attorneys general and other voluntary and irrevocable changes made by our companies,” Ohlemeyer added. 

R.J. Reynolds spokesperson David Howard told Bloomberg that the company was disappointed the judge ruled in the U.S. government's favor and is considering an appeal.