Major cigarette makers sue over new tobacco law
RICHMOND, Va. (AP) — Two of the three largest U.S. tobacco companies filed suit against federal authorities Monday, claiming a law that gives the U.S. Food and Drug Administration new authority over tobacco violates their right to free speech.
R.J. Reynolds Tobacco Co., maker of Camel cigarettes, and Lorillard Inc., which sells Newport menthol brand, filed the federal lawsuit with several other tobacco companies.
Part of the bill, passed in June, covers cigarette marketing.
The lawsuit doesn't challenge the decision to give the FDA authority over tobacco products. But the tobacco makers claim provisions 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.
The companies say they are prohibited from using "color lettering, trademarks, logos or any other imagery in most advertisements, including virtually all point-of-sale and direct-mail advertisements," according to the 46-page complaint.
The law also prohibits tobacco companies from "making truthful statements about their products in scientific, public policy and political debates," the companies claim in their complaint.
Reynolds spokesman David Howard said the company doesn't oppose the whole law, just portions of it.
FDA spokeswoman Kathleen Quinn said the agency does not comment on pending litigation.
Joining in the suit filed U.S. District Court in Bowling Green, Ky., are: National Tobacco Co., Discount Tobacco City & Lottery Inc., and Kentucky-based Commonwealth Brands, which is owned by Britain's Imperial Tobacco Group PLC.
The makers name the FDA, the government and individual officials as defendants in the lawsuit, which seeks to put portions of the law on hold while the case is heard.
The Family Smoking Prevention and Tobacco Control Act allows the FDA to reduce nicotine in tobacco products, ban candy flavorings and block labels such "low tar" and "light." Tobacco companies also will be required to cover any carton images with large graphic warnings.
The law doesn't let the FDA ban nicotine or tobacco outright, but the agency will be able to regulate what goes into tobacco products, make public those ingredients and prohibit certain marketing campaigns, especially those geared toward children.
Richmond-based Altria Group Inc., parent company of the nation's largest tobacco maker, Philip Morris USA, supported the bill, saying the company backs tough but fair regulation.
Altria's chief rivals — No. 2 Reynolds American Inc., parent company of R.J. Reynolds, and No. 3 Lorillard, both based in North Carolina — opposed the bill, saying FDA restrictions on new products would lock in Altria's share of the market. Richmond, Va.-based Altria's brands include Marlboro, which held a 41.2 percent share of the U.S. cigarette market in the second quarter, according to data from Information Resources Inc.
Altria spokesman David Sylvia said the company has not yet reviewed the lawsuit and would not comment.
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