Tobacco Documents Online

LOG START at 8:37:54 pm on September 25, 1997 [1] READ 1: CQ's WASHINGTON ALERT U.S. SENATOR JOHN MCCAIN (R-AZ); CHAIRMAN; SENATE COMMERCE, SCIENCE AND TRANSPORTATION COMMITTEE; HOLDS HEARING ON ADVERTISING AND MARKETING RESTRICTIONS FOR THE TOBACCO INDUSTRY; SEPTEMBER 16, 1997 *Congressional Hearings* (TRANSCRIPTS 09/16/97; 2990 Lines) Item Key: 2420 HOLDS HEARING ON ADVERTISING AND MARKETING RESTRICTIONS FOR THE TOBACCO INDUSTRY September 16, 1997 This transcript by: FEDERAL DOCUMENT CLEARING HOUSE, INC. 201 PENNSYLVANIA AVENUE, S.E., 2nd Floor WASHINGTON, D.C. 20003 Tel: 202-547-4512 Fax: 202-546-4194 COPYRIGHT 1997 BY FEDERAL DOCUMENT CLEARING HOUSE, INC. NO PORTION OF THIS TRANSCRIPTION MAY BE COPIED, SOLD OR RETRANSMITTED WITHOUT THE EXPRESS WRITTEN AUTHORITY OF FEDERAL DOCUMENT CLEARING HOUSE, INC. U.S. SENATE COMMITTEE ON COMMERCE, SCIENCE AND TRANSPORTATION HOLDS HEARING ON TOBACCO ADVERTISING SEPTEMBER 16, 1997 SPEAKERS: U.S. SENATOR JOHN U.S. SENATOR U.S. SENATOR U.S. SENATOR U.S. SENATOR U.S. SENATOR U.S. SENATOR U.S. SENATOR U.S. SENATOR U.S. U.S. MCCAIN (R-AZ), CHAIRMAN TED STEVENS (R-AK) CONRAD BURNS (R-MT) SLADE GORTON (R-WA) TRENT LOTT (R-MS) KAY BAILEY HUTCHISON (R-TX) OLYMPIA J. SNOWE (R-ME) JOHN ASHCROFT (R-MO) WILLIAM FRIST (R-TN) SENATOR SPENCER ABRAHAM (R-MI) SENATOR SAM BROWNBACK (R-KS) 09/25/97 1 Walrya'a:ANd - Caverrdur'Ocafery

don't think the circuit is going to allow the freedom of speech we hear so much around here now, you know. It becomes paid speech instead of free speech. Mr. Chairman, I, too, want to thank you for calling today's hearing and your fair attitude that has been displayed. And I think that it's important that that be made a part of the record and to review the so-called global tobacco settlement. Of course, the settlement isn't global yet anyhow, because it leaves out my farmers and farmers in all the tobacco-growing states. In any case, we will be reviewing a settlement that was drafted to stop youth smoking. But before the ink was even dry on the settlement, the anti- tobacco groups were attacking it even though the settlement includes just about every idea to stop youth smoking that public health groups have ever come up with. FORD: Just yesterday, the White House said that any settlement with the tobacco companies must achieve the public health goal of, and I quote, "protecting America's children." White House spokesman Mike McCurry went on to say that the FDA rule "achieves those public policy goals." Now everything Mr. Kessler said -- Dr. Kessler -- that his rules would do is in this bill, and more. And I'm going to ask these witnesses in a minute, which Dr. Kessler do you believe? Well, Mr. Chairman, the settlement we're reviewing includes the entire FDA rule, even though most of it -- MCCAIN: Could you withhold a second? FORD: Sure. MCCAIN: Could I say, officer, we're hearing your or someone's... (UNKNOWN): His. It's -- FORD: Mr. Chairman, if we put that up there, we won't be able to see the witnesses and they're very handsome. (LAUGHTER) Particularly Matt. I enjoy seeing him. MCCAIN: Thank you very much. I'm sorry, please proceed, Senator Ford, I didn't want to 6 #'artiyltn AEC - Ca~rtudna'OVr/c~

regulations came out in 1994. SAMSHA requires the states to pass and strictly enforce laws against underage access to tobacco products. It puts real teeth in these requirements by coordinating federal grant money on progress in reducing underage access to tobacco products. I think we can all agree that the only sure-fire way to keep children from smoking is to keep cigarettes from children. Now let's go home for a minute. In my own state of Kentucky, SAMSHA has had a dramatic impact. Before SAMSHA inspections and compliance checks were implemented, Kentucky had a compliance rate of about 40 percent. But with SAMSHA, our compliance rate has gone to nearly 80 percent in one year. And I have a letter from Margaret Platter (ph), the director of Kentucky's teen tobacco enforcement program, containing this information. And, Mr. Chairman, I'd like to see that this letter is incorporated in the record. MCCAIN: Without objection. FORD: And I think Ms. Platter's (ph) letter makes it clear that consistent and aggressive enforcement of the SAMSHA requirement will ensure that the good statistics achieved in 1997 remain or are even lowered in the years ahead. The purchaser is fined in Kentucky. And the purchaser will be required -- the teenager, the underage -- and they'll be required to do community service. I think that's something a little bit different, and it is working, and it's gone, it's doubled in one year, the compliance rate. Today we'll talk about why children start using tobacco, and what additional steps need to be taken to reduce underage tobacco use. Our witnesses will present a number of theories, particularly in relation to advertising. They might not mention that in 1994 cigarette sales rose even though advertising expenditures dropped by nearly 20 percent. You won't find that in any of their statements today. Or that five years of an advertising ban in Canada has brought smoking rates down just one point. Or that without any new federal regulations, any new federal regulations, use of smokeless tobacco by children has declined to just 1.9 percent in''96, and that's a decline of almost 40 percent, so less than 2 percent are using smokeless tobacco. I hope they will discuss these statistics and I hope they will explain to us why similar efforts that have been tried and failed in other countries will succeed in the United States. B !Ks/Mn,~'enA¢A-Ca~+errdxr'~r6

/ FORD: That's all right. We're even now aren't we. (LAUGHTER) MCCAIN: I didn't want you to be interrupted. FORD: Oh well, it's all right. If we lose our good humor around here, we might as well go fishing, hadn't we. (UNKNOWN): I'll go with you. I? FORD: OK. Well, Snake River's not bad for trout. Now where was MCCAIN: On the issue of Dr. Kessler. FORD: Yes. Well, no. That was kind of an afterthought. It wasn't down on my notes here. (UNKNOWN): On the Snake River. FORD: Even though most of the FDA rule was struck down by a federal court in Greensboro, it goes way beyond the FDA rule by including complete bans on certain types of advertising, even though the Constitution prevents us from legislating those bans, and includes i severe penalties on the companies if youth smoking isn't reduced -- now think about this -- even though tobacco manufacturers have no control over whether the billions of dollars they pay is used effectively by public health groups. It just doesn't make sense, Mr. Chairman, that I give you money, you advertise, and if my income isn't reduced, then I'm fined. It just doesn't make sense, but I didn't sign the agreement. Mr. Chairman, it's unclear to me how a settlement that goes so dramatically beyond the FDA rule can be characterized, as it has been and probably will be today, as a sell-out to tobacco companies. It seems to me that with all the add-ons being discussed, the settlement is in danger of collapsing under its own weight. And with the FDA rule still in litigation, that means the public health community could find itself without any tools it says are critical to reducing youth smoking. We continue this debate today. Meanwhile in the states, concrete and effective steps are already being taken to fight underage use of tobacco products. I'm talking about SAMSHA otherwise know as the Synar Amendment. We passed this law back in 1992, and the final 1 "~WMAfV - d.oW1sira'Auxkk

cigarettes -- not coincidentally,~the.three"mosti'heaviTy"'advertis'ed brands -- while.these-rsame thre@,brands,attracted„significantly „., smaller.share'of'the adult market. SNOWE: Unless anyone still claim that these marketing campaigns were primarily targeted to adults, consider that between 1992 and 1993, when advertising for the Joe Camel campaign jumped from $27 million to $43 million. Camel's share among youth increased more than 50 percent, while its adult market share did not change at all. Anyone who claims that the industry hasn't been targeting children is ignoring the facts. Mr. Chairman, as we review this agreement and seek ways to strengthen it, we should do it with an eye towards not only reducing youth smoking, but with a goal of eliminating it all together. Therefore, because we know that advertising has an unquestionable impact on behavior, it is critical that the restrictions that this agreement imposes on youth advertising and marketing be strong and unyielding. Any compromise in these restrictions would be a compromise in the health and safety of our children, and that option is simply not acceptable. I would like to thank our witnesses for being here to testify today and I thank you, Mr. Chairman, for calling this hearing. I look forward to an in depth discussion to proposed advertising and marketing restrictions in the settlement. Ultimately, these restrictions will have a profound impact on the broadest goals of this settlement, which is a major reduction in youth smoking. So, today's hearing does carry a great deal of significance as we prepare for any forthcoming deliberations. Thank you, Mr. Chairman. MCCAIN: Senator Bryan? BRYAN: Thank you very much, Mr. Chairman. Let me preface my comments by thanking you for holding this hearing and to the fairness in which you've approached it. Smoking is the leading preventable cause of death in this country. We all know that. More than 80 percent of the people who smoke had their first cigarette before reaching the age of 18. And the startling fact is that most young people who experiment with the use of tobacco products, do so at age 12 and 13. That means by the time those youngsters have attained their legal majority at the age of 18, hundreds of thousands -- if not millions -- are already addicted. Tragically, of the nearly 3,000 teenagers who have become regular smokers each day, 1,000 of them will die prematurely due to smoking- related illnesses. Consequences of this are not just with respect to D lYarti~Ia A~l - Cay efrpaaOua7n`

television industry's guidelines on the TV rating system. The National PTA thanks you for this opportunity to express our view points on an extremely important public health issue. We are willing to work with you as you begin to craft policies that will spare this next generation of children the hazards of smoking and tobacco use. Children are our primary concern in this issue. Thank you, sir. MCCAIN: Thank you very much, Ms. Igo, and again I want to thank you for you and your organization's involvement in this issue and we appreciate very much not only your verbal statement but I read your complete written statement and it was very helpful. Mr. Myers welcome. We again want to express our appreciation for the efforts of your organization has'made long before this tobacco settlement was reached and we view you as one of the most knowledgeable -- your organization among the most knowledgeable -- organizations on this issue and we appreciate you being before the committee today and please proceed. MYERS: Thank Mr. Chairman and members of the committee, and I want to thank you for holding this hearing. You have touched on an incredibly important point as part of the global settlement or any discussion of tobacco use. Let me briefly summarize my statement and then move on to a discussion of the issues orally. There's a few points I think need to be headlined in what we are talking about here. First, as many members of this committee have correctly noticed, despite the headlines and the sense that we are winning the war against tobacco, we are in a time of crisis. We are in a time of crisis because tobacco use rates among children have increased every year for the last five years. Among high school seniors, smoking is at a 17 year high. Any illusion that we are about to succeed in what is the really important battle, and that is the battle to reduce the number of kids who start, the number of adults who stop, is simply misplaced. We have a need to act and to act now. Two, tobacco marketing and advertising practices do affect children and do contribute to the problem. In my testimony, I have cited a number of comprehensive studies. I don't want to get into that today. But for the record, we would be happy to put into the record, the very substantial record that has been examined not only by the Food & Drug Administration but 15 H'ofAirfin APd - Ca~arrd»Ourte~

every major public health organization in this nation, by the governments of New Zealand, Canada and Great Britain and others, they all reached the same conclusion. Tobacco advertising works. Three, we cannot adequately address the problem of tobacco and children without restricting the type of advertising that has the greatest influence on kids. As Dr. Kessler has said so eloquently so often, it is one thing to cut off the illegal sale of tobacco products, but unless we deal with the factors that make those products appealing to kids, we will be swimming upstream for a long time. Four, there is no single magic bullet. Any serious effort over the long run to reduce tobacco use among children must include a comprehensive effort. We shouldn't fool ourselves about that. This isn't going to be easy. It isn't a one-time shot. In addition to restricting the type of advertising that directly influences kids, we need to do as Senator Ford said, cut back on youth access. But we also have to do more. We have to take serious the impact of public education. Public education works. We need to have periodic and significant price increases because of their impact on children. We need a regulatory system to keep this industry honest, not to put it out of business but to keep it honest. We need it to make adjustments to whatever system of restrictions and incentives we come up to adjust to new circumstances that we can't possibly envision today. We need it to ensure that the products that people continue to use are less hazardous and less addictive than today's products. And finally, we do need to restrict the impact of environmental tobacco smoke. For children we need to do so because we have concrete evidence of the impact on the respiratory system of these. But it is also incredibly important for role modeling purposes. And finally in terms of my key points, while the proposed proposal negotiated by the state attorney generals and the tobacco industry is flawed, and we agree should not be enacted without being strengthened significantly, it provides the right vehicle for the most fundamental change in tobacco control policy in this country in history. And we should be certain that whatever happens in the coming days, that that opportunity is not lost. MYERS: It really is time for us to move beyond the rhetoric and 16 #'alr~'mAtv( - Cau+eltmnOurlei~

discusses the various reasons individuals use tobacco. As to adolescents, Kluger says the following: "One should not minimize the usefulness of smoking as coded defiance of authority, of the hand fate has dealt you, of sweet reason itself. It is most favored in the first instance by juvenile smokers as an initiator into the mysteries and empowerment of the adult world. The accompanying displeasures of nausea and dizziness assaulting the novice inhaler are tolerated as rights of passage and the price to be paid for partaking in forbidden fruit. And how easy to defy the tyranny of grownups by illicitly taking up a favorite habit of theirs all the better for the reek of seriousness with no risk of rejection. "For youth or adult like, the habit may serve to compensate for profound feelings of inadequacy, inferiority or an abiding bitterness that stems from degraded social status. Such victims of social pathology are suspected of smoking not in spite of the hazards associated with it but because of them." Education will do much to solve these problems. But there are other more immediate solutions available, such as changing the way cigarettes are advertised. I hope that our witnesses here today will share their thoughts on this matter with the committee. It is widely believed that tobacco advertising helps create in children a sense that smoking is the cool thing to do and a way of expressing one's adult like independence. Criticism of tobacco advertising campaigns vary from the allegation that they create a social norm of smoking acceptance to assertions that children are directly targeted when they are most susceptible. Some research also suggests that children become addicted -- excuse me, Senator Ford, I would like to finish my... FORD: I apologize. MCCAIN: It's no problem. FORD: I was over here trying to work out something that -- but -- and it was on the verge of working out. MCCAIN: I... FORD: I whisper loud. MCCAIN: I thank my friend from Kentucky who has always shown me great courtesy. Some research also suggests that children become addicted to smoking after alarmingly few cigarettes. 3 b?x6np'mAkd - Gavertdua'Orafer

MYERS: I am concerned about that. But it is more important that we do it right. And I think that's got to be the fundamental question. There will be a balance in order to come up with'something that is tough enough to work, but realistic enough to pass. MCCAIN: Mr. Humphrey argues, Attorney General Humphrey argues that we should allow the states to move forward with their litigation in order that the concessions that were made in this agreement do not have to be made. And in light of the Florida agreement and Mississippi agreement that we might, that we would be better off, is his argument. How do you respond to that? MYERS: No one has a crystal ball. We can't predict whether we will be stronger or weaker in six months. Whether the Fourth Circuit will rule one way or the other. Whether the Texas state case will come out one way or the other. Or, whether the many cases that are currently pending will actually... MCCAIN: I think exactly what Mr. Humphrey's argument is, let us see what happens in our case before you act. And yet, the other attorneys generals are saying that they want Congress to act immediately otherwise there may be action taken by the courts that could fundamentally undermine the agreement. Where do you come down on that? MYERS: I come down that the first and foremost responsibility of all of us is to make sure that we have, we're supporting a policy that has the best possible opportunity to work and only then, to move that policy. If there is risk taking in waiting, we should take the risks. But we should also recognize that waiting does pose some additional risks. The key to me is for us to roll up our sleeves and make sure that we have a game plan for enacting the best possible policy that will reduce tobacco use the most over the long run. We shouldn't be rushed into action by artificial deadlines. We also shouldn't think that there is an endless summer. MCCAIN: But the -- again I -- in all due respect, we are getting severe criticism from the states attorneys general for not moving forward. And people like me and Ms. Igo, I think are the referees here to some degree as to whether you think they are correct, that somehow we're derelict in our duties by not coming, rapidly endorsing that settlement. Or, should we do as Attorney General Humphrey and others have 21 IYmMyymANd - Ca~reudaOwtei`

As a physician, I'm especially concerned about the epidemic of youth smoking. we know each year that an additional one million young people become regular smokers. When the dust is cleared from this settlement, my primary goal will be to ensure that we have used our resources in the most effective way possible to put an end to teen smoking. I have three young sons and I urge them relentlessly and I hope and pray that they never smoke. As a parent, I want laws at the state and federal level to ensure that my children cannot purchase tobacco. I'm excited about the opportunity we have today to thoughtfully examine some of the methodologies for reducing teen smoking. It's important that we do hear from the experts and target our efforts toward scientific strategies, rather than bureaucratic non-solutions. In addition, we as parents, as school teachers, as responsible adults can no longer look the other way when we see a young person smoking. New federal standards and funding for state enforcement will make it absolutely clear that our children are not free to do permanent damage to their bodies through illegal use of tobacco. Our society requires that young people reach an appropriate age of maturity before they vote, before they drive a car, before they drink alcohol. we should certainly require that these young people reach 18 before they make a decision about smoking. In closing, I'll note very briefly that I do continue to remain concerned about people who were not at the bargaining table in the tobacco settlement. While today's hearing is focused on youth smoking and advertising portions of the global settlement, we must continue to remember the interest of the tens of thousands of hard working Tennessee tobacco farmers when making our decisions. Thank you, Mr. Chairman. MCCAIN: Thank you, Senator Frist. Now, we'll call our first two witnesses: Mr. Matt Meyers, who's the executive vice president and general counsel of National Center for Tobacco Free Kids, and Ms. Shirley Igo, who's the vice president for legislation, the National Parent Teacher Association. Welcome to both witnesses. You and all the witnesses' written statement will be made part of the record and you're free to summarize your statements or make statements in whatever way you feel would be most helpful to the committee. Ms. Igo, we'll begin with you -- and welcome. IGO: Thank you. MCCAIN: And thank you for the involvement of your organization in this very important issue, along with your involvement of 12 /Y~tiY(cnAtd - Ca~ errznN~nlnb