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It's the Law Discussion Paper Issue Back ,round 1) Youth access to tobacco prodiucts has become the anti-smoking, movement's principle argument in seeking, to impose further restrictions on tobacco sales and marketing, practices -- primarily vending, self-service, brand promotions and ad?vertising. 1990-1993 Legislation on Tobacco: Marketing Activities (Approved Bills)',: - B'illlboard! Advertising Restrictions: State - 5 Bills; Local 21 Bills. - Vending Bans: State 0 Bills ; Local - 57 Bills - Vending, Restrictions: State - 23' Bills; Local 178 Bills - Self Service Display Bans: State - 0 Bills; Locali 20,Bills - Sampling Bans, State - 3 Bills; Local - 68: Bills - Coupon Bans: State - 3 Bilds;~ Local - 40 Bills In 1992, Congress passed the Alcohol Drug Abuse and Mental Health Administration Reorganization Act (ADAMHA). This act mandates that'states must enforce mnnimum, age sales laws for tobacco products inn order to receive more than $1.2 billion in substance abuse block grants. As a, result of this act, every state is now closely examining enforcernentt and! compliance standards concerning, the sale of tobacco products to minors; in turn, anti-smoking groups are calling for further tobacco sales and rnarketirng restrictions as a method of compliance. 3) While current industry programs re credable, they are notcoord'znated from a nationall perspective. The most widely recognized program is "It's the Law." More than 130 retail and wholesale organizations have endorsed this program,, yet there are still a large number of retailers who do not display the program's materials. With the heightened scrutiny surrounding underage purchases, it is critiical that this issue be addressed.

Ob.jectiye Re-introduce the It's the Law programi as a means of encouraging retailer action in preventing underage purchases -- demonstrate effectiveness to state and local legislators in order to prevent increased sales and marketing restrictions. Specifically: • Encourage retailers to display the ITL decal. • Ensure that retailers enforce the state age law. • Document retail actions to prevent minors from purchasing tobaccoo products. • Single out ITL with confidence when speaking with legislators andd the press to oppose onerous legislation and/or regulations such as ADA1vIHA. lVletlnodiology In order to meet this objective,, we must: • .. Evaluate the current programi Identify allies Determine needs/kinds of educational materials Develop a communications program. Identify resources Program Evaluation "It's the Law" was launched in 1989. In the last 4 years, 1.2 million pieces of ITL materials have been d'2stributed! to retailers nationwide. The number of pieces dfstributed is approximately 3' times larger than the totall universe of retailers in the United States. The program has widespread recognition, and support in some parts of the country, particularly New England. However, n large metropolitan areas (New York, Chicago, Los Angeles) there appears to be very low recognition and' support for the program. A full evaluation of the existing program is warranted, including the following: 1) Evaluate the effectiveness to date of the materials and messages: - Retail' Recognition and Use. - Legislative and Press Recognition/Credibility - Cred'iibility of Industry Messages on Youth Issue Meet with TI for historical perspective andl activity and'~ to determine ~ their level of involvement from this point forwardl O N 3) Obtain inventory of all materials. cn ~ 4)' Obtain list/database status. GA S) Define our meaning of "'participation" in the ro ram , p g .. CL~

Allies/Coalition Development Following are t;hegroups that have shown support of ITL in the past: 1) NACS' (National Association of Convenience Stores 2) AMOA (Annusement and', Music Operators Association). 3) See attached list of state associations In ad'dition to the groups that already support ITL, we need to identify additional organizations to assist in educating the retailers. Types of associations include: ll) State law enforcement agencies (Patrolmen's Association)' 2) Food Marketing Institute (FMII) . 3) DISCUS (Distilled Spirits Council of the US) 4)~ National Liquor Dealers 5): National Beverage Association 6) NUABA (National Uhiited Affiliated Beverage Association) 7 ) PM's National': Accounts 8), National Grocer's Association Resources We need to identify all potentiat avenues of support. We should first explore our relationships within P1v1' to determine mutual', allies, and then, look to external relationshnps. Internal resources may includ'e:. 1) Miller Brewiing, Company 2) PM Sales Force 3 ) - National Accounts Management 4) Public Affairs, PMCI 5) Marketing 6) Retail/Wholesale Masters Programs External resources may include: 1) RJR 2) TI 3), B&W' 4), Lorillard ~. 5), UST C 6) Smokeless Council N. We also need to obtain examples of other industries' responsible marketing, GZ 005 activity including the beer industry's responsible drinking,program. Ui Gathering physical samples wilt help us to evaluate and learn frorni others' X efforts and' compare with our own. ~ t4

Enlistment Once we identify the all'Gesamd, retailers we wish to~enlist, we need to determine houv we will approach them for their support. Depending on the nature mId size of the group; this could include: 1) Direct! mail 2) Advertising. 3)©ne=on-onermeetings 4) Trade shows 5) Sponsorships Educational Materials Possible vehicles for ediucating, associations and retailers about the program, and enl'isting: their support, include: 1), newsletter 2) video 3) seminar 4) Globe S ) Advocate 6) brochure 7) tip cards Conmuniicatiions. We need to develop a communications progranni that covers ~ both publicity and paid advertising. 1), Messages need~ to be deveibped including •Consequences of not enforcing the law. •Trends • 1vlulti-lingual 2)iPublicity •Case history of retailer caught in sting operation in a state.that subsequently passed punitive regulation. 3 ) Advertising •Consider cable tv ads-locall access or retnnant. ~ 4) Spokespersons O 9ID spokespersons from participants list and allies. N C1~ CT? L11 X ~ ~ UT

It's The Law Qvervi~ew Ob'e tiv .: Demonstrate responsible sales practices by working to prevent youth from purchasing tobacco products. Issu,es: 1) There are more than 400,000 retailers nationwide. 2) Alone, P'M has more than 250,000 customers 3) A Respansible Retail program would have toirepresentiall participants within the tobacco distribution chain, incliudingr. - Large National Chains. - "11Aom & Pop" stores. - All RetaillSegiments -- Grocery, Convenience Gas, Price Club, etc. - Wholesalers and Distributors 4) A R+esponsible Rietailer program must meet the needs of retailers - Easy to Understand - Have a Readily Identifiable Benefit - Be Affordable el: DeveJbp a simple and flexible program that reflects both industry and retail commitment tolpreventing youth fromi purchasing tobacco products. A mi utes: 1) Simple It must be practical andiaffordable for PM andlthe Tobacco Ihdustry to distribute materiali; nationwide. The program must also be simple for retailers to i mplement. Eachi kit contains: - A brief description of the program - A specific brochure thafdiscusses state law and actiivitiesto: ensure minimum sales age enforcement - A variety of decals to meet' a wide rang+e of applications (window display, below the cash register, on the register, etc.) 2) Affordable (for Retailers): ITL kits are,provided free of charge by PM and other members of'the Tobacco Industry: 3) Recognizable: Ih addirtion to1 providiing, ITL kits, PMland'ot'~her members of the Tobacco Industry have run advertisingi in retail trade publications to emphasize our commitment to preventing youth from purchasiing,tobaccog products.

It"s The Law Overview Oje tiv : Demonstrate responsible sales practices by working to prevent youthifirom purchasiing tobacco products. Issues: 1) There are more tlhan 400,000 retailers nationwide 2) Alone, PM has more t'~han 250,000 customers 3) A Responsible Retail program wouild have to represent all participants within the tobacco distribution chain, including: - Large National C'hains. - "Mom & Pop" stores - All Retail Segments -- Grocery, Convenience Gasy Price Club, etc. - Wholesalers andl Distributors 4) A Responsible Retailer program mustmeet the needs of retailers - Easy to Understand - Have a Readily Identifiable Benefit - Be Affordable r i. Develop a simple and flexiblel program that reflects both industry and retail commitment to preventing youth from purchasing tobacco products. A ri ute .: 1) Simple It must~ be practicalland affordable for Mand the Tobacco Industry to distribute materials nationwide. The program must! also be simple for retailers to implement.. Each kit contains: - A brief description of the program - A specific brochure that discusses state~ law and actlivities to ensure minimum sales age enfiorcemenf - A variety of decais to meet a wide range of applications (wi~ndpw, display, below the cash register, on the register, etc.) 2) Affordable (for Retailers): ITL kits are provided free of charge by PM and other members of the Tobacco Industry. 3) Recognizable: In.addition to providing ITL kits, PM and other members of4~he Tobacco Industry have run advertising in retail trade publications to emphasize our co mmitmentl to~ preventing youth from purchasing tobacco products.

It's The Law S~umm r • The It's The Law programwas created by Philip Morris and the National' Association of Convenience Stores (NACS) in 1989 to prevent cigarette sales to minors. NACS represents 1,400 retailers and 1,000 suppliers suchi as Duane Reade and~Genovese drug stores, Store 24' and 7-11 conveniience stores and Giant Foods and Safeway Stores grocery stores. • In 1990, ai version was also developed for the Amusement and Music Operators Association, a Chicago-based trade association of owners.of' cigarette vending machines andlother coin-operated vendling, machines. Over 100,000 pieces of It's The Law materials were distriibuted'l to vending machine operators nationwide.. • Also in 1990, It!'s The Law was adopted as the Tobacco Industry's program to prevent minors fromipurchasing cigarettes. • The It's The Law program has been endorse& by more than 140 state retail and wholesale associations. • The program provides simple and effective materials for retailers to educate their employees. - Each kit containsa state information brochure, a variety of decal sizes to suit a wide range of applications, ai program summary and a form for ordering additional materials. - The state information brochure, updated annually, includes a summary of the state law prohibiting sales to minors and the steps that airetailer can take tio ensure that minors are prevented from purchasing cigarettes. • To date more than 1 million pieces of It's.The Law materials have been distributed nationwide. • The program is distributed free of'charge. Anyone interestedlin obtaining program materiais can call PhiliplMorris at 1-8 00-343'-0975.

State Co;-Sponsorsl'Participanits as of 9/23/'93 Alabama Grocers Association Alabama Rerta~il Association Alabama Oillnen's Associatiioni Arizona Licensed Beverage Association Arizona Restaurant Association Arizona Ret'ailersAssociation Retaili Girocers Association of Arizona Arkansas Tobacco, Candy & Wholesale Grocers Association CaliforniaiCo~in Machine Association Restaurants for Sensible Voluntary Policy (ICalifiornia) Colorado Associationiof'Tobacco & Candy Distributors Coin Machine Industries of New England (CT, MA,, ME, NH~ RI, VT) Connecticut Association of Tobacco,& Candy Distributors Connecticut Food Association District of' Columbia Chamber of Commerce District of Columbia Retail: Liquor Dealers Association Florida Retail Federation Florida Tobacco & Candy Association. Florida Association of ConvenienceStores Georgia Food Industry Association Georgia Retail Association Hawaii' Business League Hawaiii Food Industry Association Idaho Association of Commerce & Industry Idaho Retailers Association

Idaho Tobacco & Candy Association Illinois Associatiorn~of'Tiobacco & Candy Distributors. Illlinois Retail Merchants Association Iindiana Retail Council, Iinc. Indiana Retail Grocers Association Indiana Tobacco/Candy Distributors & Vendors Inc. Iowa Association ofi Candy & Tobacco Distributors Kansas Tobacco--Candy Distributors & Vendors Association Kentucky Grocers Association Kentucky Tobacco & Candy Association Associated Industnes ofi Kentucky Louisiana Food & Tobacco Distributors, Inc. Louisiana Grocers Association Lo.uisianai Hotel-Motel 11 Association Louisianai Restaurant Association Louisiana Retailers Association Maine Grocers Association Maine Innikeepers Association Pine Tree Vending i Association (Maine) Maryland Association of Tobacco andi Candy Distributors Maryland-DC Vending Association The Restaurant' Associatiion of Maryland Mid-Atlantic Food Dealers (Maryland) Massachusetts Candy & Tobacco Distributors Massachusetts Foodi Association Massachusetts Restaurant Association South Shore Chamber of Commerce (Massachusetts)'

Michigan Coin Machine Operators Association Michigan Distributors and Vendors Association Michigan Merchants Councill Minnesot,al Candy & Tobacco Association, Inc. Mississippi Restaurant Association Mississippi Wholesale Grocers Association Retail Association ofi~ Mississippii Montana Association of Tobacco andl Candy Distributors Montana Foodi Distributors Association Montana Retail Association Nebraska Association Of Tobacco and Candy Distributors Nevada Association ofiTobacco, andlCandy Distributors New England Association of Chamber of'Commerce Executives (,CT, MA, ME; NH, RlI, VT) New England Convenience Stores Association (CT, MA, ME,, NH, RII', VT)New Hampshire Retail Grocers Associat~ion Retail Merchants Association of New Haimpshire New Jersey Food Council New Jersey Licensed Beverage Associatiion. Tobacco & Candy Distributors Association of New Jersey New Mexico Association of Tobacco andlCandy Distributbrs New York Association of! Convenience Stores New York State Association of Tobacco & Candy Distrilbutors, Inc. New York State Coin Machine Operators New York State! Food Merchants Association Unitedi Restaurant, Hotel, Tavern Association of New York State North Carolina Retail Merchants Association