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France: Proposed Action Plan to Amend the Tobacco Sponsorship Ban

Date: 03 Jun 1992
Length: 25 pages
2501360173-2501360197
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Abstract

A law enacted in France in 1991 (commonly referred to as the "Loi Evin") restricted some forms of tobacco advertising and sponsorship. In 1993 French legislators considered tightening the Loi Evin to prohibit virtually all forms of tobacco advertising, with only very limited exceptions. The French legislature also proposed removing an exception that had permitted tobacco companies to continue to sponsor sporting events in France even after the Loi Evin had initially been enacted.

This proposal set off an alarm at Philip Morris. The company feared that if they allowed this measure to pass in France, the same type of restrictions would quickly spread to other European countries.

Not surprisingly, PM fought the measure. This report describes how Philip Morris France (PM) planned to manipulate the French government to preserve tobacco company sponsorship of sporting events.

Not unexpectedly, PM's strategy was multi-pronged: The company planned to use the deteriorating state of France's inner-cities (called "suburbs") to its advantage by offering the government what was, in essence, a bribe. PM planned to offer to build sporting facilities and purchase equipment for the poorer sections of French cities in exchange for the government inserting an exception into the new law that would continue to allow tobacco company sponsorship of sporting events:

"[PM will] offer sponsorship activities by tobacco companies [to the French government] as one solution for the severe urban problems."

Another tactic was to threaten French legislators by upsetting their "political equilibrium." PM says,

"[should Government officials move to restrict tobacco sponsorship of events] mobilization can take place and cause problems to the political equilibrium."

PM also proposed "using the problems of the inner-cities as a political cover" for politicians to insert an amendment favoring tobacco companies into a bill about the law.

Research by PM's Corporate Affairs department showed that manipulating French legislation through an Omnibus Bill was the way to go. PM preferred working through an Omnibus bill because they are introduced very late in the French legislative session, are usually rushed through parliament and laden with many different subjects, making discussion of individual measure in the bill very difficult. Omnibus bills thus avoid scrutiny by consumer groups and health authorities. In a section entitled "How to amend the Loi Evin," PM says,

"The easiest way to amend the Loi Evin to allow the sponsorship of motor vehicle competitions by the tobacco industry is to obtain the inclusion of an article dealing with this question in an Omnibus Bill. ..Omnibus bills have two advantages:

-- They are generally a long list of very different articles amending very different laws, and are therefore difficult to discuss.

-- They are generally voted during the last two days of parliamentary sessions, and are therefore not scrutinized by the press and public interest groups."

PM further says,

"[Omnibus bills] provide the Government with an opportunity to adjust laws voted previously without having to re-open a political debate. They provide an opportunity to placate special-interest groups without having to do it openly, or even to reverse the Government's previous position at the cost of minimal political exposure..."

The Plan also indicates PM cultivated strong allies within the French government, and implies the companies could control these public servants to their advantage, saying "It will...be necessary to mobilize MP's and Senators" to propose such an amendment.

This document shows how Philip Morris works to alter laws in ways that make the company's involvement difficult to detect, and purposely tries to keep health authorities and consumer groups from discovering and discussing what the company is doing in that regard.

Fields

Quotes

FRANCE / SPONSORING BAN

BACKGROUND

The French anti-tobacco law, also known as the Loi Evin, will enter into force on January 1, 1993. In addition to its general advertising ban, the Loi Evin will make it impossible for Philip Morris to sponsor motor vehicle competitions or any other kind of events.

This situation poses a major problem for Philip Morris. Sponsorship hitherto has remained one of the few areas in which Philip Morris has retained some freedom to give its brands significant public exposure through broadcasts, photos and reports.

Moreover, sponsorship is not yet prohibited at the European level,and the ban in France may be used as a precedent at the EC level. This situation jeopardizes the sponsorship operations of Philip Morris on a European scale and could be reversed, if at all, only at great cost. Conversely, success at reinstalling sponsorship in France could provide significant impetus to Philip Morris' European efforts. Success of our proposed action plan would considerably benefit the French market and other markets at the EC. The current European context with regard to tobacco sponsorship legislation is still very much in flux, and the evolution of the French legislation may set a precedent one way or the other...

SITUATION ANALYSIS

• OBJECTIVE

To amend article 3 of the Loi Evin, and gain an exception to its sponsorship ban, most likely through a law contained in an omnibus bill.

STRATEGY

To achieve our objective, we must act on both grounds:

1. The suburbs and its solutions, 2. Sports and cultural sponsorship, in an effort to demonstrate that: * These events are popular, * Inhabitants of places where these events take place support their continuation, * Mobilization can take place and cause problems to the political equilibrium. --Endow sponsorship with a social dimension by taking advantage of the draft legislation on urban areas, which will probably ask corporations to help suburbs via sponsorship.

--Offer activities by tobacco companies as one solution for the severe urban problems.

--Mobilize parties with vested interests in current sponsorship activities.

--Use the problems of the inner-cities as a political cover for the proposed amendments.

REMARKS ON THE FRENCH SITUATION

Philip Morris has an opportunity to advance its goals in the current socio-political situation. The social problems of suburbs (roughly equivalent to those of US inner cities) are becoming a national issue in France, and a law that would set up a scheme through which private companies sponsor sports facilities and equipment is currently being considered.

In a nutshell, Philip Morris may be in a position to support the suburb sponsorship scheme in exchange for an exception to the sports sponsorship ban, specifically in respect to motor vehicle competition. Such a trade-off would also be of interest for the cities and regions in which motor vehicle events take place, because the upcoming ban would deprive them of significant financial resources.

[From Page 21, Bates No. 2501360193]:

3. THE SPECIFIC CASE OF OMNIBUS BILLS

3.1. The specificity of omnibus Bills

Omnibus Bills are used by the Government to pass a number of provisions which it does not want to publicize or about which it wishes the parliamentary discussion to be minimal. A number of new taxes and concessions to special-interest groups have been voted this way.

Omnibus Bills can contain mostly fiscal and financial provisions...or mostly social provisions. They are generally voted during the last day of the parliamentary session, and the parliamentary discussion is reduced to a minimum.

Omnibus Bills generally offer good opportunities to special-interest groups because the Government may be more prepared to make concessions through such Bills than through a formal amendment of the legislations concerned.

3.2 The procedure for amending an omnibus Bill

An omnibus Bill may be amended in the same manner as a normal Bill. This situation is however exceedingly rare, since the Bill is generally submitted almost unexpectedly on the last day of the session and the Government often prevents any amendment from being added to it.

In a nutshell, to obtain the inclusion of a provision in an omnibus Bill, it is necessary to either have lobbied very effectively the Government...or to have an amendment filed by a "friend of the Government"...

{From Page 24, Bates No. 2501360196]:

Re: How to amend the Loi Evin

The easiest way to amend the Loi Evin in order to allow the sponsorship of motor vehicle competitions by the tobacco industry is to obtain the inclusion of an article dealing with this questions in an omnibus Bill...

1. Omnibus Bills have two advantages:

--They are generally a long list of very different articles amending very different laws, and are therefore difficult to discuss.

--They are generally voted during the last two days of parliamentary sessions, and are therefore not scrutinized by the press and public interest groups.

2. Omnibus Bills provide the Government with an opportunity to adjust laws voted previously without having to re-open a political debate. They provide an opportunity to placate special-interest groups without having to do it openly, or even to reverse the Government's previous position at the cost of minimal political exposure...

...The last advantage of omnibus Bills is that one can always count on them: at every parliamentary session, each year, there is an omnibus Bill. IT is therefore less difficult to add a provision to such Bill t han to try to push a Bill/proposal through the parliamentary agenda.

Company
Philip Morris
Author
Philip Morris France Corporate Affairs Department
Recipient
Presumed corporate recipient, Philip Morris
Region
France
Type
REPT, REPORT, OTHER
AGEN, AGENDA
BUDG, BUDGET, BUDGET REVIEW
Litigation
Stmn/Produced
Named Person
Filippone, A.
Wirz, Gerard A. (PM Corporate Services, Brussels c.1990-94)
Gerard Wirz worked for Philip Morris Corporate Services, Inc. in Brussels. (PMI's Introduction to Privilege Log and Glossary of Names, Estate of Burl Butler v. PMI, et al, April 19, 1996)
Operation/Project
Countering/amending the French anti-tobacco law, Loi Evin
Named Organization
Centre De Documentation Et Dinformation
Constitutional Council
Council of Ministers
Council of State
EC - European Community
EPSY
French F1 Grand Prix - industry sponsored European auto competition
French NMA - French National [Tobacco] Manufacturers Assoc.
Groupement De Fournisseurs Communautaire
Magny Cours
Ministry of Youth + Sports
Natl Assembly
PMCS
PMI, Philip Morris International
Prime Ministers Office
Res
Sales
Senate
Special Interest Groups
Supreme Administrative Court
Vincent Georges
Burson Marsteller (Tobacco industry PR firm)
Tobacco Industry public relations firm.
Subject
legislation
industry activity
industry influence
industry recommendation
industry strategy
sponsorship

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04/06 '92 17:24 '$33 14?382297 PHILIP MORRIS i4-> P.M.C.S BRUSSELS Ia 003 FRA.NCE : PROPOSED ACTION PLAN TO AMEND THE TOBACCO SPONSORSHIP BAN PHILIP MORRIS FRANCE CORPORATE AFFAIRS DEPARTMENT JUNE 3, 1992
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04/06 ' 92 17 : 24 $33 1 47382297 PHILIP MORRI S P. M. C. S BRUSSELS 1@0a4 MEMORANDUM FRANCE I SPONSORING BAN BACKGROUND The French anti tobacco law, also known as the Loi Evin, will enter into force on January 1, 1993. In addition to its general advertising ban, the Loi Evin will make it impossible for Philip Morris to sponsor motor vehicle competitions or any other kfnd of events. This situation poses a major problem for Philip Morris. Sponsorship hitherto has remai.ned one of the few areas in which Philip Morris has retained some freedom to give its brands sigaif cant public exposure through broadcasts, photos and reports.. Moreover, sponsorship is not yet prohibited at the European level, and the ban in France may be used as a precedent at the EC level. This situation jeopardizes the sponsorship operations of Philip Morris on a European scale and could be reversed, if at all, only at great cost. Conversely, success at reuistalliug sponsorship in France could provide significant impetus to Philip Morris' European efforts. Success of our proposed action plan would considerably benefit the French market and other markets at the EC. The current European context with regard to tobacco sponsorship legislation is still very much in flux, and the evolutioa of the French legislation may set a precedent one way or the other. 2501360174
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04/06 '92 17:25 '$33 1 4738229? PHILIP MORRIS P.M.C.S BRUSSELS IM OOS . SITUATION ANALYSIS . OSJECTIYE To amend article 3 of the Loi Evin, and gain an exception to its ~ sponsorship ban, most likely through a law contained in an omnibus bill. . STRATEGY - To achieve our objective, we must act on both grounds : 1. The suburbs and its solutions, - 2. Sport and cultural sponsorship, in an effort to demonstrate that : * These events are popular, * Inhabitants of places where these events take place support their continuation, ~` Mobflization can take place and cause problems to the political equilibrium. - Endow sponsorship with a social dimension by taking advantage of the draft legislation on urban areas, which will probably ask corporations to help suburbs via sponsorship activities. - Offer sponsorship activities by tobacco companies as one solution for the severe urban problems. - Mobilize parties with vasted interets in current sponsorship activities. - Use the problems of the inner-cities as a political cover for the proposed amendments. 2501360175
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04/06 '92 17:25 '$33 1 47382297 PHILIP MORRIS ~-~-~ P.M.C.S BRUSSELS Q006 4 . REMARgS ON THE FRENCH STIUATION Philip Morris has an opportunity to advance its goals in the cutrent socio-political situation. The social problems of suburbs (roughly equivalent to those of US inner cities) are becoming a national issue in France, and a law that would set up a scheme through which private companies sponsor sports facilities and equipment is currently being considered. in a nutshell, Philip Morris may be in a position to support the suburb sponsorship scheme in exchange for an exception to the sports sponsorship ban, specifically in respect to motor vehicle competition. Such a trade-off would also be of interest for the cities and regions in which motor vehicle events take place, because the upcoming ban would deprive them of significant financial resources. . THE FRENCH NMA Neither the CDIT (Centre de Documentation et d'Information sur le Tabac) nor the GFCC (Groupement de Fournisseurs Comm.unautaires de Cigarettes) (the French NMA) have any plans to fight the tobacco sponsorship ban. sPMF EG PM Marketing remains favorable to any action which allows PM sponsorship activities. , Marketing projects 1993 are complementary to the CA proposed project. Marketing and Corporate Affairs will cooperate and implement together the attached action plan to make it become a usefull marketing tooL 2501360176
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04/06 ' 92 17:25 '$33 1 47382297 PHILIP MORRIS ~-+-+ P.M.C. S BRUSSELS 000? 5 . TIMING Since the ban will enter into force on .Taauary 1, 1993, it would be necessary to have amended the law before the end of December 1992 (the Fall parlia.m.entary session takes place from October 2 to December 22). The only second chance would occur if the ma,jority changes after the March 1993 legislative elections. In addition, we need to take advantage of the momentum generated by the activities undertaken on the decree prohibiting smoking in public places.
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04/06 '92 17:25 'a`33 1 47382297 PHILIP MORRIS -- P.M.C.S BRUSSELS 1a 008 6 ACTIO N PLAN The team which will be working on that issue (EPSY/RES, B&M, and Sales, Vincent & Georges) will be coordinated by CAPMF and PMCS (G.WIRZ / A.FILIPPONE ) with PMF Marketing department's input. . PHASE i : - Prepare PhBip Marris= actions '~ Survey of suburbs which are considered as "problematic" for the government - reaiisation in cooperation with all relevant social and political institutions. (RES) * Identification of needs and deffinition of PM's suburban sponsorship project. (BM I RES) * Definition of messages and arguments on the role of sponsorship. (BW * LegitiMize and develop the image of PMF as a "good corporate citizen". (BM ! RES) '~ Identification and training of political, labor, social, athietic'cultural, and Philip Morris spokespersons. (BM ! RES) * Drafting of amendments to the Evin law and lobbying related action. (SVG) * Drafting of proposals to the Commission dealing with the "law on cities". (SVG) Tuning : June. N cn 0 ~ w rr 0 ~ ~ os
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04/06 '92 1T:28 $'33 I 47352297 _ PHILIP YORRIS +++ P.Y.C.S BRUSSELS W0Dg 7 - Creating public awareness *"Negociation phase"of the results of the RES suburb survey with key policy makers (targets : government, suburbs'coalitions, local representatives and political parties). (RES / SVG) * National and regional press conferences announcing the end of athletic sponsorship and consequences for automobile racing. {Br'i) = * Disseminati.on of_ existing RES mayors'surveys results and of suburbs'surveys (after the negociation phase). (BM / RES) * Media relations. (BM) s Grassroot campaign to suburb coalitions using survey results. (RES) . * Initial mobilization of ipectators at lviagny-Coius with VIP events and media relai%ons. (BM) * Dissemination of a leaflet on the role of sponsorship, PM sponsorship, with a reply coupon. tBiVn The same stra.tegy will be used for all the cultural and athletic events of the summer. Timing ~: mid-August. 250 3.3501?9 - Creating awareness among elected offficiaIs *"Sport and culture" survey (target : French Fl Grand Prix and the 24 heures du Mans - both events take place in areas where locally elected off"Icials belong to the "presidential majority"). (RES) '" "Negodation phase" with results of both RES "suburbs" and "sports and culture" surveys. (RES / SVG) * Dissemination of the findings on the occasion of individual meetings with locally elected officiaLs. (RES / SVG) x Presentation to Iocally elected officiais of PM's suburban sponsorship project. * Invitatioa to French and European PM sponsored events (ie FI) {on going senstbiiization / Iobbying program 1992/1993).
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04/06 ' 92 17: 26 '$33 14738229? PHILIP MORRIS -~-~-+ P.3i. C. S BRIJSSELS Q010 E * Para.llel media relations campaign on integration and the social role of sponsorship. (BM) Timing : mid-August. - Social actions: * Negociations with city governments and the Ministry of Youth and Sports to take young adults to automobile races during the summer. (SVG) = Media relations. (BM) * Mobilize third parties (unions, economics policy markers, etc..,). - (RES I SVG) T'.;ming : mid-August. - Plan to phase H will be developed by mid-August according to : * Results of the "negociation phases", * Status of the legislation on urban areas, * Analysis of reactions of mayors and elected officials to PM project, * Results of media coverage. At this point, the plan could be stopped or continue into phase Ii. If we continue into phase II, we will have to use the "suburbs" and "sports and culture" coalitions to force the acceptance of an amendment to the Ioi Evin. r.. t3~ O
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04/06 ' 92 17: 26 $33 1 47382297 PHILIP MORRIS ->--+ P. M. C. S BRUSSELS 1a011 SPONSORSHIP BAN - ESTIMATED BUDGET L SALES, VINCENT & GEORGES Global budget FF 900 000 (including legislative work, lobbying and active monitoring). II. BURSON & MARSTELLER Consulting 500 000 Definition of French sponsorship program 250 000 4 media trainings 280 000 4 press conferences (3 outside Pad.s) 500 000 Media relations (6 months) 300 000 Media events surrounding PM sponsored events (10) 600 000 Grassroot activities (mass mailing, press kits, etc) 500 000 TOTAL FF 2 930 000 These costs do not include PMs'sponsored youth programs during the summer. 111. EPSY I RES Survey "suburbs and solutions" ans its exploitation 380 000 Survey "sport and culture" and its exploitation 237 000 Grassroot program for the dissemination of bothh surveys 350 000 Consulting (6 months) 300 000 TOTAL FF 1267 000 . GRAND TOTAL FF 5 097 000 No#a : These costs have not been totally reviewed between PMF and its consultants, but give an overall picture. 250i3b0i$ i
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O4fUB '92 17:27 $33 1 47382297 PHILIP MORRIS -+;-+ P.M.C.S BRUSSELS IM012 FFY8N23St-1t TIMETABLE PHASE 1 ACTION JUNE JULY A UG. SEPT. OCT. Getting n:ady : Sports & culture survey x x Survey & suburbs x Identify sponsorship needs x x Messages development on sponsorship roie X X Legislative work X X Identification & trai_n~n gg ' of spokespersons X Invitation of young adults of inaer cities to participate in PM sponsored events X Development of PM sponsorship project for inner ci.ties X X lYfobiliblng public opinnfon : Press conferences (national - & region.al) X X X Marketing of survey's results X X X X On going media relations X X X X Grassroot campaign X X X VIP reception with mayors, MP's senators at each PM sponsored event X x Invitations to PM sponsored events X X X X X u~, 0 Distribution of information w on sponsorship role at each o PM sponsored event X X 00 rNa Oa going lobbying X X X X X Coalition building X X X X X

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