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
Aggressive Marketing to Kids
“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)
Aggressive Marketing to Kids
Aggressive Marketing to Kids
Percent Smoking Three Most Heavily Advertised Cigarette Brands
86%
0%
25%
50%
75%
100%
High School
Students
86%
0%
25%
50%
75%
100%
Aggressive Marketing to Kids
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”
Tobacco Industry’s “Change”
• 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
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”
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
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
NEWS UPDATE February 2002
Ad Spending
108
47.523.8 28
216
119
0
100
200
2000 2001
$ in
Mill
ion
s
PMRJRB&W
NEWS UPDATE February 2002
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.
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
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
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
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”
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
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”
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)
Comprehensive Programs Work
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
$$$ Money Saved $$$
Comprehensive Programs Work
• Massachusetts - Saving $85 million per year by reducing smoking-caused health costs
• Missouri can realize significant savings in lives and money
$$$ Money Saved $$$
Comprehensive Programs Work
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 ...
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