December 16, 2008 - Nik Modi, tobacco analyst with UBS Investment Research, New York, said in a research note that heading in, the Good case "was a coin flip." He added that "the FTC argument (that because the FTC authorized 'lights' phrases, the industry is not liable) was not the strongest argument and that the decision was close to a 50/50 probability either way."
He said, "However, today's U.S. Supreme Court decision did not affect the industry's primary argument against class-action lawsuits: that no two smokers within a class are truly alike in terms of how they interpreted cigarette labeling or marketing or its health impact. This argument has worked for the industry in de-certifying the overwhelming majority of lights class action cases, and worked in the Engle and Price class actions.... While the headlines on the decision would lead one to expect a slew of new class-action lawsuits against the industry, we note that class actions against tobacco are not substantially more attractive today due to: 1.) the primary argument that no two smokers are truly alike, and 2.) the limitations set from past precedents on punitive damage awards."
Three Maine residents sued Altria Group Inc. and its Philip Morris USA Inc. subsidiary under the state's law against unfair marketing practices. The class-action claim represents all smokers of Marlboro Lights or Cambridge Lights cigarettes, both made by PM USA. The lawsuit argues that the company knew for decades that smokers of light cigarettes compensate for the lower levels of tar and nicotine by taking longer puffs and compensating in other ways.
A federal district court threw out the lawsuit, but the 1st U.S. Circuit Court of Appeals said it could go forward.
Reference: SCOTUS (Supreme Court of the United States) Greenlights 'Light' Suits PM USA: "We continue to view these cases as manageable" , CSP Daily News, 12/16/2008.
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Nik Modi, tobacco analyst with UBS: Supreme Court Case "was a coin flip.."
U.S. Supreme Court Rules Against Big Tobacco..
The suit, filed under the Maine Unfair Trade Practices Law, alleges that Altria misled consumers into believing that "light" cigarettes which contain less tar were less dangerous than regular varieties to smoke. The suit says the companies knew smokers typically make-up the difference in tar by taking longer or deeper puffs. Similar suits are pending in other states, exposing the tobacco industry to a new avenue of attack by smoking opponents.
Reference: Altria Case Deals Blow to Efforts Reining In Lawsuits by JESS BRAVIN, The Wall Street Journal, 12/15/2008; Supreme Court Rules Against Big Tobacco, The Blog of Legal Times, 12/15/2008.
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Related news briefs: U.S. Supreme Court 2008-2009 term, Altria v Good (07-562); Different U.S. Supreme Court Case - California: Justices turn down smokers' lawsuit against tobacco companies..; Different U.S. Supreme Court Case - Maine: U.S. Supreme Court Declares Maine Online Tobacco Sales Law Null..; Florida: Racial slur causes mistrial in Florida tobacco case..; Cigarette Makers Face Thousands of New Florida Suits..
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Canadian Cancer Society calls for federal ban on flavored cigars..
For example Prime Time Little Cigars.
According to the 2006-07 Youth Smoking Survey, 35 percent of teenagers, in grades 10 to 12 have tried cigars, cigarillos and little cigars, with the majority being male.
The survey also revealed that 48 per cent of teenagers say they have tried cigarettes. The survey, funded by Health Canada, compiled statistics on teenage smoking habits from 71,000 students in grades 5 to 12 in 467 schools across Canada.
Health Canada reports that the sale of cigarillos has grown since 2001, when about 50,000 cigarillos were sold, to 80 million sold in 2006.
When is a cigar not a cigar? When it is a cigarette disguised to slip through an excise tax loophole - Physicians for a Smoke-Free Canada.
Reference: Cancer society calls for ban on cigarillos
Canwest News Service - The Windsor Star, 12/15/2008.
Related news briefs: Ontario to outlaw candy flavored cigars..; Ontario poised to ban flavored cigarillos..; Canada: a bill introduced to snuff out drive to recruit young smokers..; Still sucking our youngsters in.. and Quebec - Teens Switch from Cigarettes to Cigarillos...
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European Health Commissioner reprimands Astrid Thors for snus liberation campaign..
As reported by Helsingin Sanomat (biggest subscription newspaper in Finland) on Tuesday, December 11, 2008 Thors had bought ten boxes of snus for her “friends and acquaintances” during a stop-over in Sweden on her way home from Brussels, where she had been on an official journey. Vassiliou points out that Sweden has promised not to introduce snus on the market in any other member states. According to Vassiliou, this applies to the Finnish territorial waters as well. Large quantities of snus are sold on cruise ships sailing between Sweden and Finland. The Commissioner has given a very strict reply to Thors who would like to deregulate the sales of snus in the EU area.
A committee on tobacco policy set up by the Ministry of Social Affairs and Health to review a potential reform of the Tobacco Act is reportedly also planning to tighten the law further. The committee will submit its final report to Minister of Health and Social Services Paula Risikko (National Coalition Party) on December 18th.
The marketing of snus as a less harmful substance than cigarettes is an outright distortion of the facts, says Harri Vainio, the Director General of the Finnish Institute of Occupational Health. ”There are no reasons to introduce on the market a new tobacco product that is popular among young people, even those below 15 years. It is an early way to become addicted to nicotine”, Vainio points out.
Directive Adopted by the EU: Under EU regulations dating back to 1992, the sale of this kind of smokeless tobacco (snus) is prohibited in all other Union member states with the exception of Sweden. The Swedes campaigned hard before entry into the EU to make their exemption from the ban a condition of joining.
Reference: Health Commissioner reprimands Astrid Thors for snus liberation campaign Experts: Snus causes addiction and cancer, HELSINGIN SANOMAT
INTERNATIONAL EDITION - FOREIGN, 12/11/2008.
Related news briefs: Aland Islands Dispute Over Sale of SNUS On Board Ships Threatens Finland's Ratification of the EU's Treaty of Lisbon (The Reform Treaty)..; Finnish Ferry Goes Swedish Over Snus Ban.. and EU Takes Finland to Court Again For NOT Banning the Use of Oral Tobacco..
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In Process - NY Cayugas can't sell tax free cigarettes..
December 14, 2008 - The New York (NY) State Supreme Court judge rules the Cayuga Indian Nation does not have sovereign rights to sell tax-free cigarettes at its stores in Union Springs and Seneca Falls.
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