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Cigarette Advertising and Promotion -- The Free-Speech Perspective

Date: 12 Jul 1990
Length: 84 pages
TIMN33231-TIMN33314
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bliley_ti 00000136-00000219

Abstract

Includes report headings: "Executive summary; Introduction; Chapter I: Why do young people begin smoking?; Chapter II: How advertising works - Competition in a 'mature' market; Chapter III: International experience with cigarette advertising bans; Chapter IV: Cigarette advertising and 'targeting'; Chapter V: Promotional activity by cigarette manufacturers; [and] Conclusion.

Fields

Company
Tobacco Institute
Named Organization
Advertising Age
American Council on Science and Health
Center for Science in the Public Interest
Childrens Research Unit of London
Congress
CRU
CSPI
Ernest & Juio Gallo
Fabbrien D'Ami Pietro Beretta
Federal Trade Commission
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.
General Motors
Gillette
Institute for Social Research
Michigan Distributors and Vendors Association
Minister of National Health and Welfare
NAACP
National Association for the Advancement of Colored People
National Automatic Merchandising Association
National Bureau of Economic Research
National Institute of Child Health and Human Development
National Institutes of Health
National Smoking and Health Association
New Jersey Medical School
NIH
Ohio State University
Ontario Task Force on Smoking
President's Council of Economic Advisors
Ragu
Surgeon General
Swedish Export Council
The Wharton School
Tobacco Products Unit
Toxic Substances Board of New Zealand
United States Supreme Court
University of Michigan
University of Pennsylvania
University of Toronto
Wayne State University
World Health Organization (Concerned with global public health)
International organization concered with public health worldwide
World Health Organization
Named Person
Ashley, M.J. Dr.
Begin, M.
Blackwell, R.D. Dr.
Gallo, E.
Gallo, J
Hamilton, J.L. Dr.
Hooks, B.L., Dr.
Lipsett, M. Dr.
M.Lewit, E.M. Dr.
Moschis
Pertschuk, M.
Schudson,
Ward, S. Dr.
Warnberg, K.
Whelan, E.
Young
Keyword
CRU
Juvenile Smoking Initiation & Advertising
Taste Cultures
Tobacco or Health: An End To Tobacco Advertising or Promotion
TSB Report
Region
Denmark
Finland
Hong Kong
Iceland
Italy
Japan
Kenya
Korea, Democratic People's Republic of
Korea, Republic of
Kuwait
Netherlands
New Zealand
Norway
Philippines
Portugal
Spain
Sweden
Switzerland
Taiwan, Province of China
Australia
Austria
Canada
China
Type
Report
Youth
Subject
Advertising regulations
Cigarettes
Consumption rates
demographics
epidemiology
Federal level
Government agencies
industry sponsored research
International level
marketing
Men
Regulations
Research studies
sales
Sampling
Vending machines
Women
Adults

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• CIGARETTE ADVERTISING AND PROMOTION -- ~ F~RR-SPEECH PERSPECTIVE THE TOBACCO INSTITUTE July 12, 1990
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CIGARETTE ADVERTISING AND PROMOTION -- THE F~R~.-SPRF.CH PERSPECTIVE INTRODUCTION ~ YO~ P~PLE B~IN ~OKING? C~T~ II: HOW ~TISING WO~S -- ~P~ITION IN A "~~" ~T CHAPTER III: ~TERNATIONAL EXPERIENCE WITH CIGARETTE ADVERTISING BANS CHAPTER IV: CIGAR~TTEADVERTISINGAND "TARGETING" CHAPTER V: PROMOTIONAL ACTIVITY CIGARETTE MANUFACTURERS CONCLUSION TIMN 0033232
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~" ~ i~ ~ AND PROMOTION -- NO on~ really pretends that advertising is a ~jo= ~eterminant of smoking in this country or any otler." Michael Pertschuk Former Chairman l/ Federal Trade Co~ission-- Each y~ar since 1986, legislation has been intro- duced in Congres~ to ban cigarette advertising or to impose controls on the .=ontent of cigarette advertising that would be tantamount to a total advertising ban. The premise of this legislation is that cigarette advertising is a signifi- cant determinant of smoking by young people and adults and that banning cig;~rette advertising would redube smoking. Antismo~ing advocates have issued a number of manifestos attempting to ju:~tify legislation banning cigarette adver- tising on this b;~sis.~/ i/ Tobacco Iss1~es, Institute of Politics, Harvard University, Apri 27, 1983, Tr. 8-9. 2/ E.g., Tobac,:o Use in America Conference, Final Report (Jan. 1989). TIMN ,0033233
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INTRO-2 Co~ .~% e~ "rFs~ This p~per considers whether banning cigarette advertising in foct would advance the goal of reducing smoking. Relyin9 principally on data reported by government agencies and by antismoking advocates themselves, the paper concludes that a cigarette advertising ban would not signi- ficantly affect tobaccoproduct consumption. However, an advertising ban would violate the First Amendment, reduce the information available to consumers, stifle competition among the cigarette manufacturers, and trigger "major cutbacks" in advertising, publishing and other industries.~/ Antismo~ing advocates only recently have begun to proclaim that cigarette advertising is a major influence on the decision by young people to start smoking. Before banning cigarette advertising became one of their principal political goals, .~ntismoking advocates (in agreement with governmen~ offici.~is and other experts) emphasized family and peer influences as the key determinants of smoking, while advertising played little or no demonstrable role. The contention that tobacco advertising influences people to smoke a.so overlooks or ignores the function of advertising in a "mature" product market such as the market for cigarettes. ~in a mature product market, where the 3/ Policy Economics Group, Peat Marwick Main & Co., The Economic Conseque~:ces for Supplier Industries of a ~am on Cigarette Advertiaing and Promotion, p. 1 (Dec. 1988). TIMN 0033234
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product category is long-established and awareness of the product category is universal, advertising gene/ally does not operate to ii~creaseoverali~demand. Advertising instead operates to main~:ain or expand market share within the product category -- to maintain the loyalty of consumers who already use the })rand being advertised and to convert con- sumers who use other brands. In a market where a single market-share point is worth $358 million (and where the market itself is shrinking), i~ should come as no surprise that cigarette m~nufacturers are prepared to spend large s~s to maintain their market share or to expand their market share by ~ven a small increment. To be ~.uccessful, however, brand advertising must overcome two hurc.les: it must attract the viewer's attention and it must distinguish the advertised bran~ from the multitude of others on the market. To break through the "clutter" that e~ists in the advertising marketplace, .advertisers must frequently employ eye-catching settings and employ bold graphic designs and arresting brand slogans. To separate the advertised brand from its competitors, an advertiser must create a distinct "personality" for the brand. Enforced foreclosure of imagery, themes and slogans in cigarette advertising, as some proposed legislation would do, would be tantamount to no advertising at all since it would not attract the attention of smokers or distinguish one brand from another. - ~-- 0033235
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eta : ~_. produc~ eaŁegory is long-established and awareness of the product caŁegory is universal, advertising generally does not operate to increase overall demand. Advertising instead operates to ~intain or expand market share within the product category -- to maintain ~he loyalty of consumers who already use the brand being advertised and to convert con- market itself is shrinking), it should .... that cigarette m-~nufacturers are prepa~ sums to ~intain their market share or ~& market share by even a small ~ncrement~~~ To be :~uccessful, however, brand advertising must overcome two hurdles: it must attract the viewer's attention and it must distinguish the advertised brand from the multitude of others on the market. ~o break through the "clutter" that e:~ists in the advertising marketplace, advertisers must frequently employ eye-catching settings and employ bold graphic designs and arresting brand slogans. separate the adv:~rtised brand from its competitors, an advertiser must .:reate a distinct "personality" for the brand. Enforced foreclosure of imagery, themes and slogans in cigarette advertising, as some proposed legislation would do, would be tan:amount to no advertising at all since it would not attrac~ the attention of smokers or distinguish one 5ran~ ~om a~other. • ............ 0035256
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If cig˘.rette advertising were a significant factor in smoking, one ~˘ould expect to find more smoking in those countries that a~low such advertising than in those coun- tries that do not. In general, however, one finds just the opposite. Whethqr considered" from the standpoinŁ of per capita cons~pticn or the number of smokers, the level of smoking appears to be highest in those countries where advertising is fcrbidden and lowest in those countries where advertising is allowed. Even more significant, tobacco product consumption -- including consumption by young people -- is declining in many countries where advertising is permitted and increasing in many countries where adver~ rising is prohibited. In addition to advertising, some antismokers have advocated bans on "promotional" activities such as sponsorship of cultural and athletic events, distribution of tobacco product sBmples, the use of tobacco product trade~rks on nontobacco products and payments to have the brand name of a tDbacco product appear in a movie or play. Ther~ is no evidence that such activities stimulate smoking. Consequently, ban~ing them would be unjustified. Adverti:~ing bans or content controls would not reduce smoking among young people or adults. They are premised -- as are all government attempts to suppress information -- on the dangerous assumption that ordinary citizens cannot be trusted to make their own decisions. 0033237
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INTRO-5 Such a premise is antithetical to the principles of both a free market economy and an open, democratic society. For this reason, the First Amendment condemns paternalistic efforts by government to advance our welfare by keeping us in the dark. As the United States Supreme Court has stated, "[i]t is precisely this kind of choice, between the dangers of suppressing i~formation, and the dangers of its misuse if it is freely avaLlable, that the First Amendment makes for us o~/ pRIVILEGED AND CONFIDENTIAL l~oduced as required by the Court's March 7,1998 State of Minnesota, et al. v. Philip Monks, ei Court File No.: C1-94-8565 4/ Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council, 425 U.S. 748, 770 (1976). ~ ............. TIMN 0033238
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CHAPTER I DO YOUNG PEOPLE BEGIN SMOKING? "The most forceful determinants of smoking [by young people] are parents, peers, and older :~iblings." Mortimer B. Lipsett, M.D. Director National Institute of ,. ~ Child Health and Human Development!/ Before banning cigarette advertising became one of its major politi,~al goals, the antismoking lobby here and abroad candidly ~cknowledged something it now steadfastly" denies: Cigaret;:e advertising does not make people start smoking and b~m,lng cigarette advertising would not make them stop. Michael. Pertschuk, the former Chairman of the Federal Trade Co,,~ission who now helps direct the antismoking lobby, stated in 1983 that "[n]o one really i/ Smoking Prevention Act: Hearings on H.R. 1824 before the Subcomm. on health and the Environment of the House Comm. on Energy and Commerce, 98th Cong., ist Sess. 53 (1983) . . .............. TIMN 0033239
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,pretends advertising is a major determinant of smoking ~ that in this country or any other.''2/ Similarly, the Ontario Task Force on Smoking acknowledged in L982 that "[n]o persuasive empirical evi- dence exists" to support the contention that advertising is a significant de~:erminant of smoking.~/ Likewi:~e, Elizabeth Whelan of the American Council on Science and Health stated in 1985 that an advertising ban would "probably not" reduce cigarette consumption in this country.~/ AS ear~.y as 1975, Karl W~rnberg of the Swedish Export Council t,~ld the 3rd World Conference on Smoking and Health: "'~o summarfze, there is no evidence to suppor~ the view that a ban on advertising would }~ave a positive effect on smoking habits. No empirical research has been able t~. show that aggregate brand adver- tising leads to greater total tobacco con- sumpti<.n. Nor has anything been found to sugges~ that advertising entices non- smoker~, young people in particular, into becomi[g smokers. It follows, therefore, that t~ere can be no evidence showing that a ban cn advertising would result in 're- 2/ Tobacco Issnes, Institute of Politics, Harvard University, April 27, 1983, Tr. 8-9. 3/ Task Force cn Smoking, Smoking and Health in Ontario: A Need for 9alance 104 (1982) (emphasis in original). 4/ "Second Thoughts on a Cigarette-Ad Ban," Wall St., J. Dec. 18, 1985, at 28, col. 6 ..........

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