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

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

• 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

Overview

Tobacco’s Toll

• 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

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

Tobacco’s Toll in U.S.

• 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

Tobacco’s Toll in Missouri

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

Highly addictive product +

Aggressive marketing to kids +

Lack of government protections=

Epidemic of smoking among kids

How Did We Get Here?

Percent of those ever using who become addicted

00

55

1010

1515

2020

2525

3030

3535

AlcoholAlcohol CocaineCocaine HeroinHeroin TobaccoTobacco

%%15.415.4

16.716.7

23.123.1

31.931.9

Source: National Comorbidity Survey (1994)

Highly Addictive Product

Aggressive Marketing to Kids

Tobacco Industry knows 90% of all smokers begin at or before age 18


“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

In Their Own Words

Have you seen any advertising for cigarettes or spit tobacco in the last two weeks? ("Yes" responses)



Percent Smoking Three Most Heavily Advertised Cigarette Brands

86%

0%

25%

50%

75%

100%

High School

Students

86%

0%

25%

50%

75%

100%


Percent Smoking Three Most Heavily Advertised Cigarette Brands

Adults

46%High

SchoolStudents

Tobacco products are not subject to consumer protections, like safety testing

and ingredient disclosure

Lack of Government Protections

Guess which Philip Morris product is

regulated by the FDA?

• 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

Lack of Government Protections

Now The Tobacco Industry Claims It Has Changed...

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”


• 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

1998 Tobacco Settlement

Philip Morris Advertisement

“… [The Settlement] is an unprecedented agreement that fundamentally changed how

tobacco is marketed, promoted, and advertised in the United States…”

• ‘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

The Truth

1998 Settlement






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."

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."

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%

The Truth

Marketing to Kids

• 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

Increased In-Store Marketing

The Truth

Source: University of Illinois at Chicago, July 2000

• 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

Increased In-Store Marketing

The Truth

Source: Stanford Univ. School of Medicine; Univ. of North Carolina Dept. of Health

$90.2

$119.9

$50

$100

Jan - Sept1998

Jan - Sept1999

Dollars in Millions

Over 15% youth readership

Ads in Magazines Popular with Kids Increased 33% After ‘98 Settlement

Increased Magazine Advertising

The Truth

Source: Massachusetts Department of Public Health, May 2000

Increased Magazine Advertising

The Truth

The Wall Street JournalMay 17, 2000

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

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


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


Ad Spending

108

47.523.8 28

216

119

0

100

200

2000 2001

$ in

Mill

ion

s

PMRJRB&W


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.


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


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


“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






The Truth

The Truth

The TruthPR to Avoid Change

Philip Morris Philanthropy

$115

$150

$0

$50

$100

$150

Dollars Given

Publicity Cost

The Truth

The Wall Street JournalJuly 16, 2001

• Philip Morris Report: "Positive effects [of smoking] include savings in public health-care costs and state pensions due to early mortality of smokers, and savings of public costs related to the support of the elderly."

• Response of Czech doctor Eva Kralikova: "Following that logic, the best recommendation to government would be to kill all people on the day of their retirement."

The Truth

What They Don’t Advertise

The Truth

American Legacy Foundation






Industry’s “Youth Prevention” Campaign:

• Sends an inconsistent and ineffective message

• Source is not credible

• Offers no reasons not to smoke

• Positions smoking as an adult habit and, therefore, appeals to kids

The Truth

PR to Avoid Change

“The 16-20 year old begins smoking for psycho-social reasons. The act of smoking is symbolic, it signifies adulthood…”-- Philip Morris internal document

The Truth

PR to Avoid Change

The Truth

Tobacco Industry’s Real Targets:

• Policy makers who can enact real

changes in laws and regulations

• Potential Jurors who consider liability cases costing billions of dollars

The Truth

PR to Avoid Change

“Systematically brief all key members of Congress and state legislators on our tobacco youth initiatives ... target advertising on our youth initiative to key legislative states and districts.”-- Philip Morris, “Corporate Affairs Five Year Plan 1992-1996,” January 1992

The Truth

In Their Own Words

“…the ultimate means for determining the success of this [youth prevention] program will be: 1) a reduction in legislation introduced and passed restricting or banning our sales and marketing activities…”-- 1991 Tobacco Institute Memo

The Truth

In Their Own Words

The Truth

• Cigarette makers continue to market in

ways that impact kids

• Despite the ‘98 settlement, advertising

continues to increase at record levels

• Using PR to convince policy makers

and jurors they are reformed

Summary

The Real Solution to Reducing Youth Tobacco Use

1 Food and Drug Administration (FDA) consumer protections

2 Other Policy Changes– Clean indoor air laws– Excise taxes– Health insurance coverage for cessation services

3 Comprehensive Tobacco Prevention Programs in Each State

The Real Solution

1 Congress must pass FDA legislation to– Stop tobacco marketing and sales to children

– Force industry to disclose cigarette ingredients, like ammonia, formaldehyde and arsenic

– Eliminate or reduce harmful components

– Regulate dangerous and misleading health claims

The Real Solution

* Congress must not be fooled by Tobacco Industry’s attempt

to push ineffective and inadequate FDA legislation

2 Other policy changes

– Clean indoor air policies to protect kids and

adults from second hand smoke

– Excise taxes on cigarettes to reduce youth

consumption

– Provide health insurance coverage for cessation

services

The Real Solution

3 Comprehensive tobacco prevention programs in states– ‘98 Settlement provided funds to states, but

did not direct how money must be used– Unfortunately, most states, including MO,

are failing to fund prevention programs at the minimum levels recommended by the CDC

– To be successful, programs must be comprehensive

The Real Solution

Comprehensive State Programs1. Public Education -- Counter Marketing

Comprehensive State Programs2. Community Based Programs

Comprehensive State Programs3. School Based Programs

Comprehensive State Programs4. Programs to Help Smokers Quit

Comprehensive State Programs5. Enforcing Laws Against Sales to Minors

Comprehensive tobacco prevention programs in states

1.Public education (counter marketing)

2.Community-based programs

3.School-based programs

4.Helping smokers quit

5.Enforcing laws prohibiting sales to minors

The Real Solution

Must be well-funded, sustained and evaluated

• In three years, Florida has reduced smoking

by 47% among middle school students and

30% among high school students

• Since 1995, Massachusetts has reduced

smoking among high school students by 15%

Smoking Rates Reduced

Comprehensive Programs Work

• Lung and bronchial cancer rates reduced by 14% between 1988 and 1997, compared to less than 3% in other parts of the country (CDC, Nov. 2000)

• Prevented 33,300 heart disease deaths between 1988 and 1997 (University of California, San Francisco, study, December 2000)


Lives Saved in California

• California - Saved $390 million in health costs by preventing 12,000 heart attacks and strokes in seven years

• California - Saved more than $100 million by reducing the number of pregnant women who smoke, resulting in fewer low-birthweight babies

$$$ Money Saved $$$


• Massachusetts - Saving $85 million per year by reducing smoking-caused health costs

• Missouri can realize significant savings in lives and money

$$$ Money Saved $$$


The Challenge in Missouri

32.8

164

18.7

0

50

100

150

200

$ Millions

CDC minimum

provided

Tobacco Ads in MO

Conclusion

• Tobacco remains by far the #1

preventable cause of death and disease

• Industry claims of change are aimed at

blocking real reforms

• The real solution must include FDA

regulation and comprehensive,

well-funded prevention programs

• Supporting effective FDA authority over tobacco products

• Urging state legislatures to spend tobacco settlement money on tobacco prevention

• Working with state advocates to achieve policy changes such as tobacco excise taxes, clean indoor air laws and health coverage for cessation services

What Tobacco Free Kids is Doing...

• Tell your federal representatives to support effective FDA regulation of tobacco

• Tell state legislators and Governor Holden to spend tobacco settlement money on tobacco prevention and other policy changes

• Work for local ordinances addressing clean indoor air, youth access, etc.

• TO ACT NOW, go to www.tobaccofreekids.org and click on ACTION CENTER

What You Can Do...

2002 Missouri Legislation

• Current status of legislation can be obtained at www.house.state.mo.us

• Move cursor to 2002 Bill Info• Then on Bill Tracking Search• Select 2002 Advanced• Then type in either

– Keyword– Bill Number– Bill Sponsor

Additional Information Sources

National Center for Tobacco-Free Kids1400 Eye StreetSuite 1200Washington DC 20005

Tel: 202-296-5469 Fax: 202-296-5427 www.tobaccofreekids.org

American Legacy Foundation1001 G Street, NW, Suite 800Washington, DC 20001

202-454-5555 phone202-454-5599 fax www.americanlegacy.org

P.O. Box 570Jefferson City MO 65102-0570

• Tobacco related issues – Bureau of Health Promotion 573-522-2820 [email protected]

• Cancer related issues – Bureau of Cancer Control 573-522-2841 [email protected]

DHSS contacts ...

Documents

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