Tobacco Documents Online

RM.w. .q1Y. 1. do a.iwi. Www.. .d s.a * ww..d s...» LL:MHB Ga2o-o UNITED STATES DEPARTMENT OF JUSTICE .AfHlxcroK, D.C. May s3, 1963 Mr. Robert L. Wald tiald, Haricradsr i Pockateller 808 17th Street, 11. il, Washington 6, D. C, Dear Mr. Wald: ay letter of May 20, 1963 you have subAitted on bahalf of P. Lorillard Co.pany • proposed .eri.s of U,cussi:ons relating to tobacco advertising for con.ideration in ratation to tbs antitrust lavs. As you nay be wars, the Department of Ju.tic, is not autborised to rendar advisory opinions to private partie+. It i• within the proper discretion of the Deparwnt to datwrmina whether criminal or civil proc.edin,gs, or both, should be brought in particular cases under the antitrust la+rs. It is the policy of the'Department of Justic. Nhra a privat• party .akes full disclosurP to the Deparhs4nt of a coRtsaalatad optration or progras before it becomes •fiecr.ive, tc iadis•ate vhether or not th. Departaent vill forego the LnsticuGion of crie.inal, proteed- ings if it should subsequently determine to test the legality of the activities involvsd• The Department of Justics always reserves the right to institute civil proceedings in the ev*'It it appe.ra that the legality of the activities should be chrll.ngsd or tested. It appears from the reprasentations aade in your letter to the Depart.ant that Mr. Morgan J. Ctra~ssr, president of P. Lorillard Company, proposes to inyita offioials of other tobacco companies to anter into discussions the object of which vould be to formulate a voluntary advertising cods for the indu.try• The purpose of the code would be to define good advertising practices and to rac forth certain cate=ories of undesirable advtrtiein=, e.g., advertising which makea an appeal to young tetsons or vbieh attespts to gle.orise smoking by ~ . , ~, . . .'.. ' .' ' . ~~. ,.,.

. / Mr. Robert L. Wald Page Ybo May 23, 1963 ralatin; it to youtb, seat, rasenca, strccsss, and so forth. You e~ra.nnt furthst.,tm„7pa; 1Rttst, ~bat~,~heepa discuss,ious_~uld.bp wnine~d at a11,~1ta~ts_.Co.,tbLS~,?lt,t~t of cigarette ad~„+isind.sad at . tArllrd Coopany would be priparod-to":ub~it to the Departmant any advertising coda which nisht be adopted. The Antitrust Division of tha Departsmat of Justice has concluded that the Departmtnt will not institute criminal proceadings against the tobacco companies and/or thair rsprasantativas involved in thcsa discussions based solaly upon the putting into affact of the proposed plan referred to in your letter mentioned above. As a part of this coaraitm.nt it is to be specifically uadarstood that the abova-mantionod discussions will be Qoalinad at all tiaas to the c&AWt of ciSnrqto advertising and that t. Lorillard Coapany .ill-submit to the Dc~~zt" any advertising coda which way be adopted. It is to be under.toqd further that this cossiits+eat of the Depart.ent rslatss solely t4 the discussions of a cigarette advertising coda and is not W be interpreted as an approval of or a cowaita,ant with respect to any ultimately adoptad code. If there are other a=rMsssntp, drran=emonts or practices which go beyond thoaa referred to hsreia, or which haw not ban disclosed although related to the proposal referred to herein, or if tha activities actually arSaSed in So beyond th. proposals mentioned herein, the Depart.ont of Juaties reserves fall lr..do. to proceed either civilly or crininally, or both, asaisst asnr aad all parties of such agr.eaent6, arranpemaats or practices asd against aV and all parties angagisg in such activitias. In isadsrtikiai to forego tha institution of criminal proceedings undsr the antitrust laws with rsspeat to the submission mantionad abova, the Department of Justt" =cprwssa oo trirw and tekes no position with resp.ct to the aff.ct or ipplieation of aay law of the United States other than the astitstist lara is relation to such matters. U8 IAEVING81 •asiatant Attorney Ceaaial Antitrust Division I