Tobacco Documents Online

...... w'0'rAr. =1?" rttt~~~tf~t~c' ~.".ost!fc oi X"f NJICOMMRfEF ON TWiPORT'ATIOM, TOUIII8K AND K/W1tD4Vt NAATtl1AW COwMa1M @N tNtnOY'An0 CoMMUtCr WAiMMMOT81N, OC io918 r r ~ MM "`Ww,..a ~,......r~ ,.+.~ew..r . r.r.t M~C ..p~fRM/ I~O+tau.~~ Toi M'.ab.rs'and dt t!, •ubcoaai'tt.e on Zransportaiti1 on, Tourisa, and NaIIrrdous Materials FRI T'hoaas A. Luksn, Chai'rtan, DAs NayF .*, 1111 7ttt waari'nq on the ltqalit~ of ei4.r.tta adv.irtii.m.ntr under this sod.ral ?rad. Co~ea ssion Act, !tr ,' 4, 19de, at 9:mQ a«. !n ltoos 3!1Z2 Rayburn Housr Ott'ics suidin9 SAt'YCQLiEtion This Ss the 9ubcommitts.l"r third hearing Qonesrnii ciqar.tt'.s and the f.drral Trade Cosai'sai'otV ('"1TC"'). IIo April 1'e7, the s~a'bcommittai h.ld'i hearings on the R.a~Sth Protection Act of 1917, K'.A. 11!73 anidl it'.11. 1532, which, would ban all .dW.rtiis'ingot tobaceo products. ln Nay, 1917, th'. •u'bcommittse h.ld tii.'arin9s on, th,• d.cilsion by the tTC to oi'ose its laboratory tar t.stlnqg tar arad nicotins, l'.v.ls In ctqarattes, This hearing will focus oo whsth.a advertisements for low tar'ci9as.tt.s violate section 5 of the [.drral yrad., Comion, Act. The tubcosmitt.a plans to IhMwa a hsari'mq, roba'b~ly In late May or .arTy Jun., eoncosnir~~q' i'ssuea raised In i o' on. vs Li st Grou' IInc. in, thiat trial im federal eour .warkr aw srssy,, r'.Z'ipollortis alleges that Li4q.tt Group, lhlilt I~~orri'~s,. tr1e., as~d Lorillard IIftc' are rssponsibl• for his wifil death in 19t/ s ros lung eadic.r'. D'r. James Mold, iordar assistant di'r.ctor o!'r.ssarch at L1qq.tt i, My.rs, has testified that by 197f'Li~qstt a Myers had dav.Top.d what he considered to be a salor c qaz.tt., which~it pat.nt.d, and that he was told byr th. 'tr~isid.~l~t of Lllqq.t't a Myers, fts vr. s. o.y., Jr., th t Philip Morris threatened Liqq.tt iMysrs while Li9q.tt a Jliyers was deciding whether to sell the satsr aSqaratt.. Liqq.tt a, Myers has t~ot In fact, sold the satar eiqarstts, L!q •tt i My~srs' official position, as expressed in, 1lr. D•y~'s tsstieony !n ol nr, !s that thar. S s, no .vid.maw tF~at saokinq,3s dangerous os vsa baings. The President alLiq4l.tt i Nyr.ra haa agreed to testify b.ior• the iubeosa4tte.'within1two w.aks ait.r, tthe ~Ci ollon trial ends (whi'eh Li ,q.tt a My.rs" attorney ostis~at siIl be aid-l~ay)'~. Or. IItold ~as alro a9,rasd' to testify at that tiaas .i ~ in order not to qrnerata publicity which aiqht'atltct the , on M~ay, ~~~, should aa aueh as possibl. 9,011101110 'lury, our he'~arin ccj 0 s ay away ;r'om sp.ci tie t• srsacss to Ct_, o11on.. I ~

... •., ~ ceica7i50 The, Lar'sttoInduat Aeeordtni to a i9lt fTC' gaport t•nclos.0, in 1l'85~, 16t billion cigarstitet wsre sold St%, tlnsa dp~orcentd~eel4n.# lrom the peak lavel soid in 1985. aSant Aov s.1l~f a ackaq• oE 10 cigarettes for $1.~30. Assumir,q that total oi qarat~. $alss in 1,8T arw the sama as in 18l5', ths's• data im ly~ 1981 =atai1 aalr• of about $39 billion Ci'r~eludin; about 44.1 ~illton im federal •xeise taxsO. Ths IT'C reports that in 1015 the oi9ar.tte oompaaiea sID.nt about ;1. S bi!1l'iom an adv-.rtisin% and ¢roaoti'on, ot' which 8'891 miilion was !br rerrspape,r, saqasia., outdoor, and transit ads. six v.S.iirsr --t, d.aernoSd's,: Philip Korris, iro.rn and' Williamson, American sramda, Li4qttt a ity.as~ asud s.osillard -- have acrountadlfor about !8 percent oz all e~qarattr salet, as' boa~h, imports and seYss b otfier, tt;.i.companies ar.rsaQliible.1ive of tt~ase dirss~ -- a~l except iro~ # ttilliaaor~ --- ~.1oMg to the Tobaaco snitityts. U~ 1016 the dUprOs. Court v'pti.Zd the conviction of th.~ waior ciQa~r~~et~t.~ aomp~~an~ies~~ l~o~~r violatin8' the ihr,r~a~a~n~ 1~c~~,t~~ t~ine~s~ os, d2S0,000i wsr. ais.ss.d.. 1sdt~~ral ~ health ~nd~~ FTC' l~tQS,tl~ona dIh,& ~~~~~C''#Lnvolve_ ri_, fection 8''~os the FTC Xtt prohibitr "'unlair os d.ceptiva« advsrtisam:nts. zn 198i the FTC issu.d'a policy stat.mrat r~.'9 a~~r~dinq i~ts~ advat~~tisinq~ suh~~s~t~~afi~tiation~~ proqr~aa~ (tncZosed~)~~,~ which, states C~a~ tt S~~~ th~~at~~ a~ !'ir~m~ •vat be able to, ~ substantiate ~ a~ny~~ claim thalt is r•a~sonably~• iapl,iad b,~~ i~ts~ ads'.~ 'lhe~~ V.~f'.~ publ~i'~c~~ !6t'alth, ds~rv~i~cr, estimates that 8~50.0,00~ Amari'aans die each year from •mokinp. Tha ci'qar.ttt compt~nirs alaim that thar~.~ ia~ no seie~nti~i~4e~~ •v~~i~d.r~ca that smfl~kS,ltp~ a~avsaia~ illness or deatli.. t !n 1lK a Coo4t of Appeals uplkeld a FTC tindi'nq thst •idv.rtieamsnt'a tar various c1 4arsttss sold'by P. Lotillard (p,..ch-nut, iaftsatioft, and, Old 0old), ware dacs tl~va wheA they claimed th.se oi arettes had loss tar and'aico~ind than oth.t el' ~arattas.~ t~~, ariiia~s~~d, S~. v;;, ~',~ 11'6~ !'.2d~ 52I d',tb~ ~'r.~ 1q~@l. in 1951 a our oi"p •als upheld a FTC tindinl that ada by>t. :. fteyr~olds for Cam.l c~d#rettssi vars deceptive by stating tE~at sselkim eould be b.~u.tteial. ]~, ~~.~s olba o. j~e ~ i~97t s.~4 115 ~~ C7~th ~ ch:~. 1951~x,, In TlIi nr. Myndat produc.d'~ diFin cancer in sioa to vhosre baaks he applied tars condensed lrom cigarette smoke. •'irics than both Congress and the FTC' havs tsspond.d to •~cisr~tilic studiis cor~cerni~nq the limk between smokl;n9 and health. i~f 1953 th. FTC proFiIbitad' 411 ci arstts ads ~rsiatie~q~ to, the ph~r sical effects of ss~okinp,. Im 1965' ~or~tr.ss ass.d the l.d.ral Cigarette Lab.,linq and Advertising Aet -- 1166, which

t• uir.d a waraing Labal an all cigarette packaqas~.~ Sn Karch, it~~Qr the FTC told the diar.ttscom9an~iar~ th~ay could adva~~p~ti~tstar and t~icotiao levels i,~' they ua.d a staodardis.d' tsst, and in 1944 the tTC also established a laboratory for testing the tar and' nicotine levels in eigarrtEes. Zn 1'939 Coo4r.ss, passed the Public K.alth Ci aretts 3ieoltir~q, Act of 1969, .r}~i,eh banned cigarette sd~rart~s.ments from t.lfvis'ior, and' radio. U 1971 the FTC sued this six sajoir eiqar.tt, comp~.ni.s^ allsging that their tailurs to ir~cludt Ehr turqeom Otnsral"s warnis~ , in their advertissmfnts v~i'oiatsd sactioa~ 5 ot the FTC a~e~) tha companies siqma6 consent agreements fn1'97Z'. in,1973 Congress passed the Little Cigar Aet to btift•l'ittle cigars" within, the two revious acts. 2n 1912 CCongress ~oublad' the excise tax on cig.rat~as and cig,ars, rai,sinq !t to 16 cemts' a, pack om cigarettes. Zn 1984 CCongress passed the Comprehensive iaoking Education Act, r+squirir~g t~our specific rotatiag, warTMinqs~~~ onciga~r,ettepa~clkaqas and adWSrtir.a.nts. 2n 1935 ao part of the Nu'r,aa ldueation Amandmeats ot 1985, !firms s.h,ing less thaa one-fourth of one percent of alS eigarsttsr sol'd in thit v.s. are not required to rotats, the warring, oh their packag.s. in, lsi6 Cong,r.ss passed the Comprsh.nsive dmokeless Tobaceo sealth, iducatt'on Act, which requires warning'lab.ls on all smokeless tobacco productr and advertisements and bans their advertising onradio or telsv-ision, Sm, 1917+Con res,r~~ banned smo~kis~~q~ o~nairlih., ll~iqhts~~ otl.ss, thia~n two hours~ (~s9inning last mor~th). in, 19t3 the lTC sued srown, a Milliae:oo,cl!aimilng that ltsadv.rtissment for arelay~~ Ncing-afla~o cigsrettss ~ras deceptive b.eause, (1) it suqqest~dito consumera that Barclay was . oilici!ally, rat,ed as I mg tar by the fTC whsn in taot the tTC,s smoking machine wasi unabie~to tost darclay because of the articvla,r filter used in~ the cS airstte a~nd (2) •arel~ay"a •'991 ~ar irae" slo~q an suggestsd that ~arelay is virtually !r*o, of tar. ?hs District Court u h.Td the first tqC claim. Thr Court r.ject.d the second ~TC elaim b.caus. the FTC laitiad'to present ov dence showing that emn6umeirs war~ mirl.d by the "991, tiar Lre." sloqan. The C'ourt o!' Appeals atti'rmeQ the IDistriEt Court. M ~ own a Nilliamson, To-.b'l Qii 778 t.2d 3!5 (n.C'. Cit. MS') •no osedT. !n June 1964, tthe !TC svtd 1t. J. 6tsyrnold't, claiaing its ad (aao anclos.d coaplaint '~ was unfair or dsee tiva b.aau~sr it mis~rsprassnttd the rosu,t• of the Kustipls ~itk lactor istorwantion, Trial (dhairaanOlivor dissented trosi issuing the Qoaplaint). !n August 1916, the Administrative Law ludge ('"AbJ") dississ.d the complaint on the ground the ad wasi "rsencomaercLal spe.ch'' aad was protected by the First Amendment. The FTC stait app.aledthe, dismissal toth., Coma~issi'onat~d onJ~'~p~til 11 the CosdmissioM reversed the 11S.J IlChairmar~ 01~vrr disssnt9ng) (1900 '.nciosad press release). Zn .arly, 19t7g the FTC dsc,idbd,to close its laboratory lcr, tosting, tar and ntcotin+ , claiming that the industry would do the, t.stiaq under FTC monitoring. Accordin,g to th. r=C. •ach ot the aa~j'~orcigarette companiesha~s its own, laboratory,, an~d'tlhoraia also this Tobaceo Institute Testi'nq Laboratory, which is run by tAe industryr. The tSC' a last Y.port on, tar, aicot4rie, aad carbon aonoxidtvrasissued i'n Ja~nuary, 1A1!f (aot attachsd),.

~4- On, Alr~i~l 35~, 1988, ~tthe C~oalitioA ~ ro~r~ aaolkinq, o~r~~ ttaalth: (eomptise of th. JCm.riei& Cancer ioti*ty r the 1LmM~rican tteart 1~ssociationsat~d the J1m.ricanLun , Assocfatios~) titod a~.ti'tion with th., lbo~~Q` and D~~rw~~ 1~d~si'A,ist~ra~~io~tl, ('"t1~A~" ) ~, Q~lailtl~Dq that i~~owl tar ci q,ar.ttea at. a drut" (baaaus., ads for thfA imply they aze loss 1'ik~sly~ to eaure di~r~.ase) end aa should, be r~.qulat.d b~y,~ th~..~ ?0A. • rvata litia, aonl dealh Lros aok •inas 1954 th.ra have been ovrar 2001 ssuits filad aqaiftst the ciqar.ttai oompanirs conc.rnimQ alleged d.aths from smoking. The companies have never lost a, .yite iasTudiA4 eleven that havt ms.r1 triod.: Thare, aro nowiSt pending suits. 1n iaos, V !•tt of'ou'Vo, n,c. (t ncloaod) tha, Co~urt o! Appeals riv.rs`aa's't he la ric-couand'dissiaaed a auiton the 9round that the •tdoral Cigarette Labalin9 and AdvertisinO Aot, pr..mpta KasrMehusatta law. Witnesses and =xQected t.etiaony No have not y.t received any writton, ttstiioay from witnesses. it. 3. j.ynolds, which tel'Ss Movol and dm.ri'canTobaoea,l which ta~~l'lI Carl~tonlr were Invited on, Xpz~i~l~ 7,: to, explain ~ how ta~ch~ eigar.tta can truthfully claim to be the "'low.st" ia tar (arw ada attached to .~ncl'~o~s.d~ l.~~tt.~r~ of~ April 7, ~ to, tTC Qlaa~irmat~~ O1~i~var)~. 1'oth companies d.clia.d, to app.ar, ela~a+ir~ tl~~1 b.arinq on d.c.ptive ad'vrrtfls.mants~ would pre j,udi4~. t~a i olne, caor and •tatinq,thay needrd more time to proparo,, aowav.rp ach company submitted a written statement C•nclossd)'. Thr, dubeommittss then asked o~aeh ~ com~~a~n~y,~ ~~~ t~o~ aup,~y~y~~ by,~ Jlp~r~~il~ 1'~2~~, documents support~i'r~~q~~ or eor~tradietinQ hs assart 'on. "dM in th~ written statements. tt.ith.r cospany bas fully complied with, this request tor documents. Kr. Charles 0l. Mhitlay and Dr. mi2liaa L. itaelo will -t.stifyi about thel Tobacco Institute's 1,aboratory for t.stit~+~, M a~rrttr~s,. Dr. wie~,asl il~~. Oue~r~~ir~~ ot~ the Oak l~i~dqa~~ Ka~tior~al~ oratory vili testify aboytit4 capability fmt t.stimq oiqar.t~t.s.~ Chairman aaaiel Oliver of th., fTC' wi11' testify about whathor 1ow tar cigarette advertisements ar* deceptive and, in QarticoYar whotl~.r a~toa~, ad and a iCarYton ad, aact~ ot' .chicKh claims to ~o th. "low+.st• tnitaro aro deceptive (s.e .nclos.d April 7lst'ta,rl to !TC)..

4- lcott m. lallIA of the Jla.rican R.art Ataoci'ationr! Xob.rt s. McAfaar !(.0t t of the 1n.riiaan W.di'cal Asrociati'oAl John r. ianshaf 212, t acacutiv. Director of Action, on, dmok ng and u.altha Jllfrad Munstf /I.a., of the American Lung, A~1so~eiatioa1and Patrick 1tsoids t'qrandson, of the founder oZ R.i J. 1toynolda), of #unrricans or Monsmokara tti4hta vil'l •aeh t.stify that' current 1ov tar' oiqarstt. ads make d•e•ytivs health cl~atma and that the tTd ia aot curr.ntsy enforcing tha rTC Act in this ar.a. Gornish t. sitcheock of Public Clltis.n Lttiqation Orou~p vi'll~ Lrsttty about the current statius of efforts by vrariouls l~.al'th~~ groups to qst the prot,aoti've ord'a,r r.movad! drom, docuoants, prod!cc.d by the ciqaratta aompani.r during discovery in yalmf.r. Zn Jdnuar y 19dt1,, a district covat judge in f.d.ral courtIn aoston ord.rad the docwaants eade public; the tobaceo coapani.r havalapp.al.d this daeision«