Tobacco Documents Online

x UNITED STATES DEPART14ENT OF JUSTICE WASHINGTON, D.C. LL :MHB 60-20-0 May 23, 1963 Mr. Robert L. Wald Wald, Harkrader & Rockefeller 808 17th Street, N. W. Washington 6, D. C. Dear Mr. Wald: ' By letter of May 20, 1963 you have submitted on be- half of P. Loril3ard'Company a proposed series of discussions relating to tobacco advertising for consideration in relation to the antitrust laws. As you may be aware, the Department of Justice is not authorized to render advisory opinions to private-,parties. It is within the proper discretion of the Department to deter- mine whether criminal or civil proceedings, or both, should be brought.in particular cases under the antitrust laws. It is the policy of the Department of Justice when a private party makes full disclosure to the Department of a contemplated operation or program before it becomes effective, to indicate whether or not the Department will forego the in- stitution of criminal proceedings if it should subsequently determine to test the legality of the activities involved. The Department of Justice always reserves the right to in- stitute civil proceedings in the event it appears that the legality of the activitiesshould be challenged or tested. It appears from the representations made in your letter to the Department that Mr. Morgan J. Cramer, presiderit of P. Lorillard Company, proposes to invite officials of other tobacco companies to enter into discussions the object of which would be to formulate a voluntary advertising code for the industry. The purpose of the code would be to define good advertising practices and to set forth certain categories of

Mr. Robert L. Wald Page Two May 23, 1963 undesirable advertising, e.g., advertising which makes an ap- peal to young persons or which attempts to glamorize smoking by relating it to youth, sex, romance, success, and so forth.. You represent further in your letter that these discussions would be confined at all times to the content of cigarette advertising and that P. Lorillard Company would be prepared to submit to the Department any advertising code which might be adopted. The Antitrust Division of the Department of Justice has concluded that the Department will not institute criminal proceedings against the tobacco companies and/or their repre- sentatives involved in these discussions based solely upon the putting into effect of the proposed plan referred to in your letter ment3.oned above. As a part of this commitment it is to be specifically understood that the above-mentioned discussions will be confined at all times to the content of cigarette advertising and that P. Lorillard Company will sub- mit to the Department any advertising code which may be adopted. It is to be understood further that this commitment of the Department relates solely to the discussions of a cigarette advertising code and is not to be interpreted as an approval of or a commitment with respect to any ultimately adopted code. If there are other agreements, arrangements or prac- tices which go beyond those referred to herein, or which have not been disclosed although related to the proposal referred to herein, or-if the activities actually engaged in go beyond the proposals mentioned herein, the Department of Justice re- serves full freedom to proceed either civilly or criminally, or both, against any and all parties of such agreements, arrangements or practices and against any and all parties engaging in such activities. In undertaking to forego the institution of criminal proceedings under the antitrust laws with respect to the sub- mission mentioned above, the Department of Justice expresses no view and takes no position with respect to the effect or application of any law of the United States other than the antitrust laws in relation to such matters. cn Sincerely yours, 0 N 0 0 Lee Loevinger ~ Assistant Attorney General Antitrust Division ~ N