Kids and Tobacco: The Real Story

1. Kids and Tobacco: The Real Story Why the Tobacco Industry’s Claims of Change Are Untrue And What Really Needs to Be Done Adapted from a Presentation by Campaign for Tobacco-Free Kids

2. Overview • Tobacco’s Toll: Continues to take a huge toll in health, lives and money • Tobacco Industry Has Not Changed: Despite efforts to appear reformed, cigarette companies still target kids • The Real Solution: There is a real solution to the problem, but we need the political will to enact it

3. Tobacco’s Toll

4. Tobacco’s Toll in U.S. • Tobacco is the leading preventable cause of death, killing more than 400,000 each year • Tobacco kills more people than from AIDS, alcohol, car accidents, murders, suicides, and fires combined • Tobacco results in $89 Billion in annual health care costs • Nearly 90% of lung cancer cases, 1/3 of total cancer deaths, and 1/5 deaths from heart disease are tobacco related

5. Tobacco’s Toll in U.S. • Everyday in America: • 5,000 kids try their first cigarette • More than 2,000 kids become new daily smokers, one-third of whom will die from smoking-related diseases • 28% of high school students smoke, according to CDC • 41% used some tobacco product in the last month

6. Tobacco’s Toll in Missouri • 9,900 tobacco-related deaths annually • 41,500 new kids will try their first cigarette every year • 18,200 kids will become new daily smokers every year • 121,000 kids alive today will die from tobacco use • $1.5 billion in annual health care costs related to tobacco use

7. Potential Savings in Missouri If Missouri achieves just 1% reduction per year for 5 Years • 203,000 fewer smokers in the state -- just from those averted in the first five years • Saving 67,000 people from a premature death from tobacco use • 21,900 Missouri kids alive today would be spared a premature death from tobacco use

8. How Did We Get Here? Highly addictive product + Aggressive marketing to kids + Lack of government protections = Epidemic of smoking among kids

9. Highly Addictive Product Percent of those ever using who become addicted 35 31.9 30 25 23.1 % 20 16.7 15.4 15 10 5 0 Alcohol Cocaine Heroin Tobacco Source: National Comorbidity Survey (1994)

10. Aggressive Marketing to Kids Tobacco Industry knows 90% of all smokers begin at or before age 18

11. Aggressive Marketing to Kids In Their Own Words “It is important to know as much as possible about teenage smoking patterns and attitudes. Today's teenager is tomorrow's potential regular customer…” -- March 31, 1981 Philip Morris market research report “[T]he base of our business are high school students.” -- August 30, 1978 Lorillard Tobacco memo

12. Aggressive Marketing to Kids Have you seen any advertising for cigarettes or spit tobacco in the last two weeks? ("Yes" responses)

13. Aggressive Marketing to Kids Percent Smoking Three Most Heavily Advertised Cigarette Brands High School Students

14. Aggressive Marketing to Kids Percent Smoking Three Most Heavily Advertised Cigarette Brands High School Students 46% Adults

18. Lack of Government Protections Tobacco products are notsubject to consumer protections, like safety testing and ingredient disclosure Guess which Philip Morris product is regulated by the FDA?

19. Lack of Government Protections • Few restrictions on youth marketing • Poor enforcement of laws against sales to minors • Few states funding prevention programs • Tobacco industry fights every effort to fill these gaps

20. Now The Tobacco Industry Claims It Has Changed...

21. Tobacco Industry’s “Change” • In 1998 industry settled lawsuits with states • Claim to no longer market to kids • PR -- Feel-good corporate image advertising • PR -- “Youth anti-smoking efforts”

22. Tobacco Industry’s “Change” 1998 Tobacco Settlement • Negotiated between state attorneys general and tobacco companies • The industry promised, among other items, not to market to kids • Billboard advertising was banned • States receive $246 billion from tobacco industry as result of settlement

23. Philip Morris Advertisement “… [The Settlement] is an unprecedented agreement that fundamentally changed how tobacco is marketed, promoted, and advertised in the United States…”

25. The Truth 1998 Settlement • ‘98 Settlement actually affects very little tobacco marketing -- e.g. magazines, store advertising not impacted • In fact, advertising that impacts kids actually INCREASED after ‘98 Settlement • Settlement did not require one dime of states’ money go to tobacco prevention

26. Tobacco Industry’s “Change” • In 1998 industry settled lawsuits with states • Claim to no longer market to kids • PR -- Feel-good corporate image advertising • PR -- “Youth anti-smoking efforts”

27. The Truth Marketing to Kids PUBLIC statement of R. J. Reynolds "Position on Youth Smoking": "R. J. Reynolds Tobacco Company does not want children to smoke, not only because it is illegal to sell to minors in every state, but also because of the inherent health risks of smoking and because children lack the maturity of judgment to assess those risks."

28. The Truth Marketing to Kids PRIVATE R. J. Reynolds company memo: "To ensure increased and longer-term growth for CAMEL FILTER, the brand must increase its share penetration among the 14-24 age group which have a new set of more liberal values and which represent tomorrow's cigarette business."

29. The Truth Marketing to Kids • Latest Federal Trade Commission (FTC) shows cigarette advertising increased by record levels after ‘98 Settlement: • Tobacco marketing reached record-high $8.24 billion in 1999, or $22.5 million per day • Largest $ increase in history of FTC report • Increased 22% after signing ‘98 settlement • Payments for higher visibility on store shelves up 23% • Promotions, such as buy 1 get 1 free up 65%

30. The Truth Increased In-Store Marketing • July 2000 study showed increases in in-store marketing after cigarette billboards were banned by settlement • 75% of kids visit a convenience store at least once a week Source: University of Illinois at Chicago, July 2000

31. The Truth Increased In-Store Marketing • June 2001 study of California stores shows 48% have cigarette ads at kids’ eye level (3 feet or lower) • 23% of stores place cigarettes within 6 inches of candy • Average store had 17 tobacco ads Source: Stanford Univ. School of Medicine; Univ. of North Carolina Dept. of Health

33. The Truth Increased Magazine Advertising Ads in Magazines Popular with Kids Increased 33% After ‘98 Settlement Source: Massachusetts Department of Public Health, May 2000

34. The Truth Increased Magazine Advertising The Wall Street Journal May 17, 2000

38. NEWS UPDATE February 2002 • #1 Philip Morris pulls advertising from 80 magazines • #2 R J Reynolds likely to follow suit • #3 Brown & Williamson increased ad spending by 25% • Overall tobacco ad spending in 2001 36% lower than in 2000

39. NEWS UPDATE February 2002 • PM says cutback is business decision, not political or moral decision • PM relies heavily on promotions, direct mail, and point-of-purchase displays rather than print advertising

40. NEWS UPDATE February 2002 • PM has so much market share that benefit of print advertising may be negligible • Ad stoppage can allow Philip Morris attorneys to claim to juries that the company has truly mended its ways

41. NEWS UPDATE February 2002

42. NEWS UPDATE – Part II February 2002 • As Big Tobacco cuts back on media ads • Apparently also want tobacco control advocates to cut back on ads • Lorillard Tobacco announced plans to sue American Legacy Foundation in Wake Co NC state court for some of its “Truth” ads.

43. NEWS UPDATE – Part II February 2002 • Lorillard accuses Legacy of violating the MSA by conducting prohibited “personal attack on, or vilification of” tobacco companies • Since Legacy’s first broadcast a TV ad of body bags in front of a tobacco firm's headquarters, cigarette makers have complained settlement ground rules were broken

44. NEWS UPDATE – Part II February 2002 • Legacy’s response? • Ads merely stated the truth - - therefore did not vilify anyone • Additionally, tobacco companies are powerless to sue Legacy as it is only a beneficiary of MSA and was not a party to it • Legacy has sued Lorillard in New Castle Co DE state court

45. NEWS UPDATE – Part II February 2002 • “Is the truth campaign actually true? . . . any industry that is responsible for the deaths of more than 400,000 people a year is doing some pretty ugly things. And to point those out, is that vilification?" William H. Sorrell, Vermont Attorney General Chairman of the tobacco committee of the National Association of Attorneys General

46. Tobacco Industry’s “Change” • In 1998 industry settled lawsuits with states • Claim to no longer market to kids • PR -- Feel-good corporate image advertising • PR -- “Youth anti-smoking efforts”

47. The Truth

48. The Truth

49. The Truth PR to Avoid Change

50. The Truth The Wall Street Journal July 16, 2001