Tobacco Documents Online

PHILIP MORRIS COMPANIES INC. .2O PARK AVENUE. NEW YORK, NY 10017 "I1_rxR..1• H tir:l N(: SENiOF+ VICE PRESIOENT ANO OENEr7AL COUNSEL Federal Express April 7, 1992 Dr. Gerhard Casper President Stanford University Stanford, California 94305-2060 Dear Dr. Casper: This is in reply to Dr. Kennedy's letter of March 19, 1992, to Michael A. Miles. We appreciate the interest which Stanford University has shown in Philip Morris, and as I have previously advised Mr. Gaither, we welcome the opportunity to engage in a constructive dialogue with representatives of the University on the subjects covered by Dr. Kennedy's letter. As a first step in that process, we would like to address the two principal subjects mentioned in that letter - warning labels on cigarette products sold abroad, and our efforts to curb smoking by minors. With regard to warning labels, the vast majority of our products sold around the world already carry such labels. As of January 1, 1992, 90% of all the Company's cigarette packages sold worldwide carried a warning, and that number increases to 96% when sales in international duty-free shops are excluded. Moreover, at the beginning of this year, we adopted a policy which contemplates that by the end of this year, the U.S. Surgeon General's warnings, or some other appropriate warning, will appear on every Philip Morris cigarette package sold worldwide where no warning is required under local law. As to marketing and minors, we share your belief that the decision to smoke should only be made by informed and mature adults. To keep cigarettes out of the hands of children and to discourage them from smoking in the first place, Philip Morris U.S.A. has for several years voluntarily adhered to a series of marketing restrictions set forth in "The Cigarette Advertising and Promotion Code."

Dr. Gerhard Casper April 7, 1992 Page - 2 - Pursuant to that Code, we only employ models in our cigarette advertisements who are 25 years of age or older, and most importantly, they must look 25 or older. Philip Morris U.S.A. tobacco products are not advertised in magazines directed at youth, and they are not even advertised in college newspapers, despite the fact that most college students are legally adults. We do not allow cigarette samples to be distributed to anyone under the age of 21. Our samplers are required to ask each potential recipient if they are 21 years of age or older, and whether they are currently smokers. People requesting samples through the mail must provide certification that they are smokers and 21 years of age or older. Our contracts for outdoor advertising require that all billboard placements be at least 500 feet away from schools, playgrounds, and youth centers. Although we sponsor several sports and cultural events, we do not ask sports figures or entertainers to endorse our cigarettes. Promotional clothing items bearing cigarette brand names come in adult sizes only. To avoid even the appearance that we market to children, Philip Morris U.S.A. has also consistently taken legal action against companies which make unauthorized use of our cigarette trademarks on products that may appeal to children. Last year we launched an extensive ad campaign to remind manufacturers that we intend to prosecute anyone for use of our cigarette trademarks or logos on children's products. Over the years we have taken legal action against manufacturers of toys, candies and video games who have done so. In February of this year, we filed suit against the Sega Company of San Jose, California for not removing unauthorized Marlboro logos from their Super Monaco GP auto racing game. Philip Morris U.S.A. is also using educational programs to discourage children from smoking. We have assisted The Tobacco Institute in providing a free booklet, "Tobacco: Helping Youth Say No" to parents through coupons in national magazines such as TV Guide, Ebonv, and People. This booklet is designed to help parents teach their children how to recognize and resist peer influence to smoke, which studies show is the most decisive factor in teenage smoking.

Dr. Gerhard Casper April 7, 1992 Page - 3 - Retailers do not always obey or fully understand the laws involving cigarette sales to minors. To address that problem, Philip Morris U.S.A., in cooperation with the National Association of Convenience Stores, implemented a program called, "TT'S THE LAW." This program provides point-of-sale brochures, buttons and stickers to communicate to retailers and customers the legal age limit for cigarette sales in their state. We also support the passage and strict enforcement of laws that would set a minimum age of 18 for cigarette purchases in all 50 states. In connection with our efforts to discourage youth from smoking, I am enclosing herewith two documents: Statement of Philip Morris With Respect to its Marketing Practices and Policies Actions and Initiatives: What Philip Morris U.S.A. is Doing to Prevent Minors from Smoking I believe that these materials provide a good discussion of our marketing practices and policies, as well as our efforts to prevent minors from smoking. I hope that the information contained in and attached to this letter will assure you of Philip Morris' strong commitment to the Cigarette Advertising Code and to initiatives to prevent smoking by minors. We appreciate your interest as a stockholder and an outstanding educational' institution. I want to assure you of our readiness to provide any additional information that you may consider relevant, and to meet with the SCIR, the APIR, or any other University representatives, as part of an ongoing dialogue. Sincerely yours, Murray H. Bring cc: James Gaither, President, Board of Trustees Denise O'Leary, Chair, SCIR Diana Diamond, Chair, APIR Laurance Hoagland, CEO, Stanford Management Company