On Monday, August 31, 2009 several tobacco companies, including Lorillard Inc. and Reynolds American Inc., filed a lawsuit in federal court in Kentucky challenging many provisions of the new federal tobacco law alleging they violate the companies’ freedom of speech rights under the First Amendment. The lawsuit is filed in U.S. District Court in Bowling Green, Kentucky.The law, The Family Smoking Prevention and Tobacco Control Act, gives the Food and Drug Administration (FDA) authority over tobacco and allows the FDA to reduce nicotine in tobacco products, and ban labels like “low tar” and “light” as well as flavored cigarettes that opponents of tobacco companies claim are targeted towards children. Additionally, companies must also put large warnings over any cartoon images.
The companies complain that parts of the law ‘“severely restrict the few remaining channels we have to communicate with adult tobacco consumers,’ Martin L. Holton III, senior vice president and general counsel for Reynolds, said in a statement.” Further, according to the Associated Press story on the lawsuit, the law would prohibit the companies from using ‘“color lettering, trademarks, logos or any other imagery in most advertisements, including virtually all point-of-sale and direct-mail advertisements.’ The complaint also says the law prohibits tobacco companies from ‘making truthful statements about their products in scientific, public policy and political debates.’” The companies assert that the new law would make it virtually impossible for consumers to see the “branding” of cigarette packs.
Yet, the companies do not argue with all of the law. The provision that gives the FDA authority over tobacco products is not being challenged. As per their policy, the FDA is not commenting on the pending litigation. The FDA, the government, and individual government officials are named as the defendants in the lawsuit.
Floyd Abrams, an attorney representing Lorillard, summed up the tobacco companies’ theme of the case, ‘“[s]ome of these regulations go so far in the direction of stifling the entirely lawful speech of Lorillard to its customers that it violates the First Amendment[.]”’
While two of the three largest tobacco companies are taking part in the suit, notably absent is Altria Group Inc., the company that makes the Marlboro brand of cigarettes. In fact, Altria supported the bill. Its competitors believe the bill was good for Altria and will lock in their market share. According to the Information Resources Inc., Marlboro enjoyed a second quarter 41.2 percent share of the U.S. cigarette market.
To read the AP story on the lawsuit click here.
Posted: 09/10/09
