Tobacco

Tobacco Cos. Gain ‘Corrective Statements’ Victory

Court hands cigarette makers partial win over required disclosures

WASHINGTON -- A U.S. federal appeals court has ruled that tobacco companies cannot be forced to announce publicly that they deliberately deceived the public over the health risks of cigarettes, reported Reuters.

Cigarettes corrective statement tobacco warning (CSP Daily News / Convenience Stores / Gas Stations)

The U.S. Court of Appeals for the District of Columbia Circuit ruled against the manufacturers on several other issues as it considered a long-running racketeering case brought by the U.S. government against various companies including Richmond, Va.-based Altria Group Inc., Greensboro, N.C.-based Lorillard Inc. and Winston-Salem, N.C.-based Reynolds American Inc.

The companies lost the original lawsuit and an appeal, and a district court judge in Washington then ordered them to place advertisements, known legally as corrective statements, explaining the history of deception.

The defendants again appealed, saying they should not be forced to make such disclosures and challenging the specific content of the statements. In the ruling on Friday, the appeals court largely upheld the lower-court judge, but ruled for the tobacco companies on one issue.

Judge David Tatel wrote on behalf of the court that the companies had no grounds to object to being required to disclose that they "intentionally designed cigarettes to ensure addiction."

But the court held that the federal racketeering law does not allow courts to require the companies "to announce that they deliberately deceived the public."

The court rejected the companies' claim that they should not be required to publish the statements on company websites and cigarette packages as well as in newspaper and TV ads, said the report.

The appeals court sent the case back to the lower court for further proceedings.

The case is Philip Morris USA Inc v. United States, U.S. Court of Appeals for the District of Columbia Circuit, No. 13-5028.

Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Snacks & Candy

How Convenience Stores Can Improve Meat Snack, Jerky Sales

Innovation, creative retailers help spark growth in the snack segment

Technology/Services

C-Stores Headed in the Right Direction With Rewards Programs

Convenience operators are working to catch up to the success of loyalty programs in other industries

General Merchandise/HBC

How Convenience Stores Can Prepare for Summer Travel Season

Vacationers more likely to spend more for premium, unique products, Lil’ Drug Store director says

Trending

More from our partners