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Statement of Charles O. Whitley on behalf of the Tobacco Institute before the Subcommittee on Health and the Environment - Committee on Energy and Commerce - U.S. House of Representatives

Date: 09 Jul 1990
Length: 47 pages
32095-32141
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Abstract

Presents draft testimony opposing H.R. 5041, "Tobacco Control and Health Protection Act" which would repeal existing legislation and: (1) restrict advertising and ban promotional activities; (2) require warnings in packaging and advertising; (3) allow state and local governments to attempt to restrict advertising; (4) impose state-based tort liability regarding additional warnings and advertising restrictions; (5) "withhold federal funds from states that do not implement the model sales-to-minors bill recently proposed"; and (6) regulate ingredients and establish a new federal agency to conduct counteradvertising (see Bates 25797).

Fields

Company
Tobacco Institute
Named Organization
American Association of Advertising Agencies
American Civil Liberties Union
American Health Foundation (Health Research)
Plaintiff
Association of National Advertisers
Attorney General
Bureau of Consumer Protection
California Department of Health Services
Center on Tobacco and Health
Committee on Energy and Commerce
Congress
Connecticut Food Association
Council of Economic Advisors
Covington & Burling (Tobacco Industry law firm)
Tobacco industry law firm. Was involved in organizing the Whitecoat Project.
Federal Communications Commission (U.S. government agency regulating TV, radio)
Enforced the Fairness Doctrine against the tobacco companies; required time be provided on TV, radio for anti-smoking commercials.
Federal Communications Commission
Federal Trade Commission
Freedom to Advertise Coalition
Federal Trade Commission (Enforcement agency for laws against deceptive advertising)
Enforces laws against false and deceptive advertising, including ads for tobacco products. Ensures proper display of health warnings in ads and on tobacco products;collects and reports to Congress information concerning cigarette and smokeless tobacco advertising, sales expenditures, and the tar, nicotine, and carbon monoxide content of cigarettes.
Hanyang University Institute of Environmental and Industrial Medicine (Korea)
Health and Human Services
Healthy Buildings International
HHS
House of Representatives
Inspector General
Institut Fresenius, NeuhoE, F.R.G.
Institute for International Health and Development (Switzerland)
Interagency Committee on Smoking and Health
Maine Grocers Association
McGill University Department of Pharmacology and Therapeutics
National Energy Management Institute (Virginia)
National Federation of Independent Business (Washington, D.C.)
National Federation of Independent Business Foundation (Washington, D.C.)
National Institute of Education
New Hampshire Retail Grocers Association
New York Medical College Department of Biochemistry and Molecular Biology
New York Times
Ninth Circuit
Oak Ridge National Laboratory
Office on Smoking and Health
ORNL
Perception Research Services, Inc.
RCC Research and Consulting Company AG (Switzerland)
Subcommittee on Health and the Environment
Subcommittee on Transportation and Hazardous Materials
Sunderland Polytechnic School of Pharmacology (United Kingdom)
Supreme Court
Surgeon General
TI
TITL
Tobacco Institute
Tobacco Institute Testing Laboratory
United States Information Agency
United States Trademark Association
United States Treasury
University of Burgogne Institut Universitaire de Technologie (France)
Vermont Grocers Association
Voice of America
Washington Legal Foundation
World Health Organization (Concerned with global public health)
International organization concered with public health worldwide
World Health Organization
Named Person
Abrams, F.
Bell, G. Esq.
Blau, T.H. Dr.
Goldhaber, G. Dr.
Kennedy, A.M. Hon.
Kennedy, Sen.
Koop, E. MD
Luken, Rep.
Mizierski, R. Dr.
Moschis, G.P.
Ottinger, Rep.
Packwood, Sen.
Partoyan, G.A.
Pertschuk, M.
Raffle, S.M. Dr.
Satterfield, D.
Sullivan, L.W. MD
Synar, Rep.
Van Alstyne, W. Prof.
Van Deerlin, Rep.
Waxman, H.A. Hon.
Wu, J.M. Dr.
Keyword
129 Cong. Rec. S2682 (daily ed. March 11, 1983)
15 U.S.C. 1333
15 U.S.C. 1335a(b)(1)(B)
Carbon monoxide
Center on Tobacco and Health
Cigarettes -- Advertising, Testing, and Liability: Hearings on H.R. 4543 before the Subcomm. on Transportation, Touzism, and Haz
Cipollone v. Liggett Group, Inc., 789 F. 2d 181 (3d Cir. 1986), cert. denied, 479 U.S. 1043 (1987)
Code of Sampling Practices
Comprehensive Smokeless Tobacco Health Educaton Act of 1986
Comprehensive Smoking Education Act
Constitutional issues
Cosmetics
Cross-national Survey
Drugs
Emphysema
Environmental tobacco smoke
ETS
Fair Packaging and Labeling Act
FD&C
Federal Cigarette Labeling and Advertising Act, Sec. 2(l), 15 U.S.C. S 1331(l)
Federal Cigarette Labeling and Advertising Act, Section 3
Federal Food, Drug and Cosmetic Act
Fetal injury
Filters
First Amendment
Flavorings
FP&L
Fragrances
H.R. 1250/1493
H.R. 1824 Smoking Prevention Act
H.R. 5041 Tobacco Control and Health Protection Act
H.R. Rep. No. 289, 91st Cong., lst Sess. 19 (1969) (additional views of Reps. Ottinger and Van Deerlin)
H.R. Rep. No. 805, 98th Cong., 2d Sess. 12 (1984)
Heart disease
Low birth weight
Lung cancer
Market share
Miscarriage
Model Sales of Tobacco Products to Minors Control Act
Non-smokers
Palmer v. Liggett Group, Inc., 825 F.2d 620 (1st Cir. 1987)
Pennington v. Vistron, 876 F.2d 414 (5th Cir. 1989)
Pregnancy
Premature birth
Public Health Service Act
Roysdon v. R.J. Reynolds Tobacco Co., 849 F.2d 230 (6th Cir. 1988)
S. 1883/2795
S. Rep. No. 195, 89th Cong., 1st Sess. 4 (1965)
Smoking Prevention Act
Stephen v. American Brands, Inc., 825 F.2d 312 (11th Cir. 1987)
Stroke
Tobacco Issues (Part 1): Hearing on H.R. 1250 before the Subcomm. on Transportation and Hazardous Materials Committee
Trade secrets
Region
Korea, Democratic People's Republic of
Korea, Republic of
Norway
Sweden
United States
Switzerland
Canada
Finland
France
Type
Draft material
Presentation materials
Transcript
Subject
Additives
Advertising regulations
Cigarettes
counter advertising
Diseases
Economic benefits
Economic costs
epidemiology
#18526 (event sponsorship)
Federal level
Government agencies
Health effects
Industry front groups
industry sponsored research
International level
legislation
Legislatures
Liability
Local level
marketing
mass media
Minimum age
nicotine
Regulations
Research studies
sales
Sampling
secondhand smoke
Smoke
smokeless tobacco
State level
Surveys
tar
testimony
Vending machines
Warning labels
Young adults
youth access
addiction

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71919o The Tobacco Institute Subco~ittee on Health and the Enviro~ent Co~ittee on Energy and Co~erce House of Representatives July 12, 1990 Mr. Chairman, distinguished members of the Subcom- mittee and former colleagues, I appreciate this opportunity to testify on H.R. 5041, the "Tobacco Control and Health Protection Act." H.R. 5041 would repeal the Federal Cigarette Labeling and Advertising Act, Sec. 3 of the Comprehensive Smoking Education Act and the Comprehensive Smokeless Tobacco Health Education Act of 1986. In place of that statutory framework, H.R. 5041 would -- severely restrict the content of cigarette advertisements and bah'promo- tional activities, making brand advertising effectively impossible; - require cigarette packages and adver- tisements to carry a series of "scare" warnings and otherwise serve as vehicles for government antismoking messages; - invite state and local governments to attempt to ban or restrict such cigarette advertising as would continue to be per- mitted under the bill; TIMN 0032095
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~, ~ .:/ permit individual judges and juries in ~ .~ $~~ each state to require additional warnings ~ ,~.~ ~ on packages and in advertising through the ,~, .~ imposition of tort liability; ,~'~~ - withhold federal funds from states that ~ do not implement the model sales-to-minors bill recently proposed by the Secretary of ~~'-~ Health and Human Services; and ~ ~ ingredients and the establishment of a Center on Tobacco and Health with power to conduct "counteradvertising" campaigns. Mr. Chairman, H.R. 5041 is one of the most extreme antitobacco bills in memory. It would curtail cigarette advertising and promotion more drastically than the legis- lation introduced in this Congress by Raps. Luken and Synar (H.R. 1250/1493). It would establish the most extreme system of cigarette health warnings in the world. And, like legislation introduced by Sen. Kennedy (S.1883/2795), it would create a costly new federal antismoking bureaucracy to engage in regulation and spending without any legitimate rationale. We strongly oppose H.R. 5041. Like the Luken and Synar bills, which we have addressed in previous testimony, ~.R. 5041 would do nothing to reduce smoking among youth or adults. It would, however, effectively ban protected commercial speech in violation of the First A~endment. The shock warnings contemplated by H.R. 5041 also would violate the First Amendment, far exceeding the government's power to ensure that advertising not be misleading or deceptive. The proposed repeal of federal preemption, as we testified two TIMN 0032096
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years ago before .Rap. Luken's subcommittee, would invite censorship in violation of the First Amendment and abandon Congress's consistent 25-year policy of nationally uniform regulation of cigarette advertising and labeling. In addition, H.R. 5041 would improperly use the power of the federal purse to conscript the states in a national antitobacco crusade, mandating regulatory measures that are unwarranted and that would not significantly reduce youth access to tobacco products. Like the Kennedy bill, H.R. 5041 would authorize regulation of tobacco ingredients even though there has been no suggestion of health concerns based on the comprehensive ingredient information that already has been supplied to the Secretary of Health and Human Services. H.R. 5041 also would require the public disclosure of ingredient information without regard to its trade secret status and even though no legitimate purpose would be served by the disclosure. Finally, like the Kennedy bill, H.R. 5041 would authorize "counteradvertising" campaigns that raise serious First Amendment issues. I will discuss these points in detail. ADVERTISING AND PROMOTION H.R. 5041 would limit tobacco product advertising to black text on a white background and a picture of the package. Pictures and human or cartoon figures could not appear on the packages themselves or elsewhere in the TIM 0032097
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advertising,l/ No tobacco product trademark logo or symbol could appear "in or as part of" an advertisement, except in the picture of the product package (if the space on the package permits). Sac. 6(a)(1), (2). The bill could be construed to prohibit manufacturers from including "tar" and nicotine information or even from mentioning that the cigarette has a filter. See. 7(a)(1).~/ The bill also would restrict the content of cigarette advertisements by requiring that 20 percent of every advertisement be dedicated to one of the statutory l/ Sac. 6(c) would grandfather pictures and human or ~artoon figures that had appeared on a package for a period of five consecutive years before January i, 1989. However, Sac. 8 would authorize the Secretary of Health and Human Services to require packages to carry additional warnings and other information that may leave little or no room for such grandfathered pictures or human or cartoon figures. Sac. 7(a)(1) would prohibit -- "any representation with respect to health or safety, including representations con- cerning the level of or removal, reduction, or addition of ingredients, tar, nicotine, carbon monoxide, filters, or any other mechanism or device." Such a "representation" could not be included in an advertisement unless the Secretary of Health and Human Services determined that the representation is "significant in terms of affecting health and safety and is based upon significant scientific agreement." Sac. 7(a)(2). The term "representation" is defined in Sac. 15(7) to mean "any statement, reference, or claim which is (A) expressed or implied, (B) direct or indirect, or (C) oral, written, or printed in graphic form or in any combination of such forms." TININ 0032098
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warnings prescribed in Sac. 4. In addition, the bill would authorize the Secretary of Health and Human Services to require additional warnings or other information to be presented. Sac. 8. Thus, while the bill purports to allow the manufacturer to present text of its own choosing and a picture of the product package, the text the manufacturer would be required to provide under the bill may well leave room for nothing else -- except for the name of the adver- tised brand itself.~/ Beyond these restrictions on advertising content, H.R. 5041 would ban all tobacco product advertising in or on sports facilities, on sporting equipment, on toys and within 1000 feet of any school regularly attended by students under the age of 21. Sac. 6(a)(3). It also would ban tobacco product sampling (including redemption of coupons for samples), the sale of cigarettes by retailers at discounted prices, brand-name event sponsorship, use of tobacco product trademarks on nontobacco articles and paid product or product-related placements in movies, music videos, tele- vision shows, plays, video arcade games or other forms of entertainment. Sac. 6(b). Finally, H.R. 5041 would ban ~/ Because the bill also would require the statutory warning to occupy 25 percent of the front and back panels of every package of cigarettes (Sac. 3), any cigarette advertisement that included a picture of the product package would be required to present the statutory warning twice. TIMN 0032099
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cigarette advertising "on any audio tape, audio disc, videotape, video arcade game, or film." Sac. 6(d).~/ I. Advertising. Mr. Chairman, H.R. 5041's proposed restrictions on the content of cigarette adver- tising would operate as a de facto advertising ban. Between the material that the manufacturers would be prohibited from including in their ads and the material that they would be required to include, it is difficult to believe that the sponsors of the bill expect it to operate as anything other than a de facto advertising ban. Despite the fact that H.R. 5041 does not purport to ban all cigarette advertising and claims to forbid only those features of cigarette advertising that supposedly influence youth, the bill is indistinguish- able as a practical matter from the original advertising ban legislation introduced by Rap. Synar more than five years a~o.~/ Our industry has addressed proposals to ban or restrict cigarette advertising in more than a dozen hearings since Rap. Synar introduced his ad-ban legislation in March 1986. Our position on this latest proposal is no different: ~/ The bill would reenact the ban on cigarette advertising • n any medium of electronic communication subject to the jurisdiction of the Federal Communications Commission. Sac. 5. ~/ See H.R. 4972, 99th Cong., 2d Sans. (1986); H.R. 1272, 100th Cong., 1st Sans. (1987); H.R. 1532, 100th Cong., ist Sans. (1987). TIMN 0032100
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It rests on the mistaken premise that cigarette advertising influences people to begin smoking and that banning or severely restricting cigarette advertising would result in reduced smoking by young people or adults. Reflecting a basic misunderstanding of the purpose and function of cigarette advertising and ignoring the experience of coun- tries that have banned or severely restricted cigarette advertising, H.R. 5041's advertising restrictions would violate the First Amendment because they would not "directly advance" their stated aim of reducing youth smoking Mr Chairman our industry does not "target" youth Our advertising is not addressed to persons to whom cigarettes may not lawfully be sold because of their age. Our advertising is addressed only to smokers to whom ciga- rettes lawfully may be sold. At the same time, smokers, like consumers of other products, are not an undifferentiated mass. Cigarette manufacturers, like manufacturers in other highly competitive markets, tailor their brand messages to particular segments of the market. Such segmentation is critical because, among other reasons, there are more than 350 cigarette brands and brand styles on the market.~/ As numerous experts have explained in testimony before this Subcommittee and the Subcommittee on 6/ N.Y. Times, Jan. 12, 1989, at DS. TIMN 0032101
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Transportation and Hazardous Materials -- and as Dr. Richard Mizerski will discuss today -- the purpose and function of advertising for any "mature" product like cigarettes is not to stimulate overall demand for the product category but to increase the market share of a particular brand at the expense of competing brands and to retain brand loyalty against other brands As the Council of Economic Advisors has stated, tobacco product advertising "mainly shifts - consumers among brands.''7/ Prohibiting the use of trademark logos and symbols, pictures and colors in cigarette advertising would make brand differentiation effectively impossible. Indeed, these prohibitions would disable cigarette manufacturers from designing advertisements with any reasonable prospect of attracting attention.~/ Cigarette advertisements, reduced to the level required by ~.R. 5041, would seldom be noticed by the smokers who constitute their intended audience. The only feature of a cigarette advertisement that could be ~/ Economic Report of the President 186 (1987). ~/ The United States Trademark Association has condemned the provisions of H.R. 5041 that would prohibit the use and display of human or carton figures or trademark logos or symbols in advertising, and the use of pictures or human or cartoon figures on cigarette packages. Letter from Garo A. Partoyan, President, United States Trademark Association, to Hon. Henry A. Waxman, July 3, 1990, p. 2. TIMN 0032102
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-9- expected to attract attention would be a statutory warning that says in effect, "~N'T B~ THIS PRODUCT." The advertising provisions of H.R. 5041 would do ~ ~ nothing to reduce smoking among youth. As Michael Pertschuk, the former Chairman of the Federal Trade Co~ission, has stated: one really pretends that advertising is a major determinant of smoking in this country or any other."9/ As Dr Mizerski will explain in greater detail the only • ' demonstrated influences on smoking by young people are the influences of family and peers, and these influences -- unlike the asserted influence of cigarette advertising -- are both powerful and direct. The expe~ience of countries that have banned o~ restricted cigarette advertising is instructive. In a major cross-national study, researchers for the World Health Organization found "no systematic differences" between the incidence of smoking among young people in countries where tobacco advertising is completely banned and in countries where it is permitted.~/ In Finland, where tobacco adver- tising has been banned completely since 1978, smoking among juveniles, which had been declining sharply before the ban 9/ Tobacco Issues, Institute of Politics, Harvard ~niversity, April 27, 1983, Tr. 8-9. 10/ Aaro, et at., "Health Behaviour in Schoolchildren: A WH---O Croas-National Survey" (May 1986), I(1) Health Promotion, p. 32. TIMN 0032103
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was imposed, increased after imposition of the ban -- ii/ In Sweden, where tobacco especially among teenage girls.-- advertising has been severely restricted since 1979, smoking is on the rise among teenagers and their use of smokeless tobacco has nearly quadrupled since 1976 12/ .- in short, cannot that banning it be maintained tobacco product advertising would "directly advance" the goal of reducing smoking among youth--a crucial part of the test that restrictions on commercial speech must meet in order to satisfy the First Amendment. I respectfully refer you to the testimony presented for The Tobacco Institute today by Floyd Abrams on these constitutional issues. I ii/ Rimpela, Rimpela, Hara-Etelaharju, Pylari, Siivola & Karvonen, Young People and Smoking 1973-1989, p. 6 (1989) (University of Helsinki, Department of Public Health Science); Rimpela, Rimpela, Karvonen, Rahkonen, Siivola & Kontula, "Changes in Adolescents' Health Habits 1977-1987: Preliminary Report to the National Board of Health" (May 1987). i~2/ National Board of Health and Welfare, Tobacco Control xn Sweden, pp. 6-7 (1987); National Smoking and Health Asso- ciation, Smoking Control in Sweden, pp. 6-7 (1983). In Norway, where tobacco advertising was banned completely in 1975, adult consumption had begun to decline before the ban was imposed and continued to decline thereafter -- though not as quickly as before the ban. Tobacco Advertising Bans and Consumption in 16 Countries (J. Boddewyn ed. 1986). This moderate decline in smoking among adults in Norway since 1975 is inconsistent with claims that smoking among Norwegian youth has declined sharply in the past 15 years. Claims that smoking among Norwegian youth was increasing before cigarette advertising was banned in that country also have been questioned. See Aaro, Haukes & Berglund, "Smoking Among Norwegian School Children 1975-1980," Scandinavian J. of PsgchologN (1981) 22:(3), p.165. TIM 00 2104

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