States "Philip Morris has joined five other tobacco companies in an agreement with the Federal Trade Commission which establishes standards for showing in cigarette advertising the caution notice which Congress now requires on cigarette packages." Indicates author is "calling attention to this agreement because I believe it resolves a major outstanding issue between the government and the tobacco industry in regard to cigarette advertising." Cites "current practice of including 'tar' and nicotine listings." Recounts FDA's charge that advertising with cigarette packs displaying warning labels, by Philip Morris and other companies, is not sufficiently "'clear and conspicuous.'" Expresses doubt that the FDA proposed action would have prevailed, but states that the decision to negotiate avoided "lengthy and costly litigation." Opines the resulting agreement represents "a fair settlement of the issue." States belief that the tobacco industry's attitude of voluntary agreement to government demands, has "eliminated the controversial aspects of cigarette advertising."
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STATE~fENT BY MR. JOSEPH F. CIN.LMAN' 3rd
January 19, 1972
Philip Morris has Joined five other tobacco companies in an
agreement with the Federal Trade Commission which establishes standards
for showing in cigarette advertising the caution notice which Congress
now requires on cigarette packages. I am ¢al.ling attention, to this
agreement because I believe it resolves a nmJor outstanding issue.
between the government and the tobacco industry in regard to cigarette
advertising. By this action, and the current practice of including
"tar" and nicoti;ne listings, cigarette man~:facturers appear to have
met the demands which have been made for full disclosure of information
in cigarette advertisements.
The ma~n. point at issue was whether ~resent cigarette adver-
tising presented the Congressionall!y-approved caution notice in a
"clear and conspicuous" manner. On Ju~ly i, 1971, the Commission
announced its intention to start a proceeding to require the inclusion
of th~s caution notice: in advertising. For the past nine months,
Philip Morris along w.ith silx other tobacco companies, had been depict-
ing in newspaper, magazine and billboa~rd advertising the side. panel
of a cigarette package on whi~ch this caution notice was clearly legible.
Our decision to show the "notilce" side of the package was made after
discussions with members of Congress and, government officials and
was publicly announced~ in April 1971.
Page 2: 1005056578
January 19, 1972
Although we believed and continue to believe that the Federal
Trade Co.mmission's proposed action to require the warning message
in advertising would not have been sustained! ei~ther on the facts or
on the l, aw, we chose to try to resolve the prob].:em by entering into
good faith negotiations w~th. the Commission ratller than engaging in
lengthy and! costly litigation which would have taxed both our
resources and those of the Commission. The resulting agreement con-
cerning the form and size, conspicuousness and legibility, of the
depiction of the Congressionally-approved caution notice and the
type of advertising on which i,t must be included, represents, in my
opinion, a fair settlement of the issue.
Cigarette advertisements have ~or some time included a listing
of "tar" and n~cotine for the advertised brands; they will con,tinue
to i~nciude the caution notice henceforth in a manner ~ecep~.5].~ ,.,nAer
the Federal Trade Commission's: standa,rds of clarity and conspi~cuosness.
In taking these steps, I believe that the tobacco i, ndiustry has shown
a responsible and cooperative attitude toward government demands for
additional consumer information, in advertSsing and has elilminated the
con.troversial aspects, of cigarette advertiising.
The "tar" and nicotine listings and the caution, notice ~gill now.
be readily available to consumers, and the use of prJ.nt~ billboard, and
other available advertising media will permit manufacturers to des-
cribe the characteristics of existing products as well as to introduce
to cigarette smokers new, improved products as they are developed.