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Anti-Smoking Ad Campaign Could Go off the Air Without Tobacco Money (Ironic...)
TBO.COM ^
Posted on 03/16/2004 4:44:04 PM PST by Sub-Driver
Anti-Smoking Ad Campaign Could Go off the Air Without Tobacco Money By Nancy Zuckerbrod Associated Press Writer
WASHINGTON (AP) - An edgy ad campaign aimed at getting kids to stop smoking could be forced off the air because tobacco companies are refusing to keep footing the bill. Former top federal health officials gathered Tuesday to urge the companies to keep paying for the "truth" ad campaign run by the Washington-based American Legacy Foundation.
"I say to the tobacco executives, look if your words aren't just rhetoric, then fund the truth campaign," said Joseph Califano Jr., who served as former President Carter's health secretary and is heading a petition drive to push cigarette makers to keep paying for the ads.
Tobacco companies agreed to fund the ad campaign in 1998 when the industry reached a $206 billion legal settlement with the states. But the agreement said if the companies participating in the settlement saw their market share drop below 99 percent after March 2003, those companies wouldn't have to pay for the ads anymore.
That happened recently as small manufacturers, who aren't part of the settlement, gained new customers. Morgan Stanley tobacco analyst David Adelman estimates those companies now have about 5 percent of the cigarette market.
The industry has so far given the American Legacy Foundation $1.5 billion to pay for the truth ads, which often showcase teenagers. In one, teens are seen dragging body bags in front of a cigarette company's office. The teens are holding posters stating that 1,200 people die each day from tobacco-related diseases.
Lorillard Tobacco Co. has filed suit against the American Legacy Foundation, saying the ads have vilified the company. Lorillard points to one radio ad in which a person identifying himself as a dog walker phones the company and tells the operator he wants to sell the company "quality dog urine" because it is "full of urea," one of the "chemicals you guys put into cigarettes."
Lorillard, of Greensboro, N.C., has said urea is found naturally in tobacco leaves.
Company spokesman Steve Watson said Tuesday his company does not plan to fund the ads now that it has no legal obligation to do so. "We have no intention of aiding them in their misguided mission to vilify tobacco companies," Watson said.
Philip Morris USA issued a statement Tuesday saying it had lived up to its commitment and touting the $125 million the company says it spends annually on anti-smoking and health initiatives.
But anti-smoking advocates say the companies' ads aren't effective. "There's no way that you can rely on them and their ads to discourage teen smoking," Califano said.
An estimated 2,000 young people become smokers each day, according to the American Legacy Foundation.
Cheryl Healton, head of the foundation, says it costs about $100 million annually to run the national ad campaign. Healton said if the companies refuse to pay for the ads, the foundation will have to decide whether to put itself out of business by spending down its $800 million endowment to continue the campaign.
---
On the Net:
Citizens' Commission to Protect the Truth:
http://www.protectthetruth.org/
AP-ES-03-16-04 1915EST
This story can be found at: http://ap.tbo.com/ap/breaking/MGAVJHYNWRD.html
TOPICS: Culture/Society; Government; News/Current Events
KEYWORDS: advertising; psa; pufflist; smoking; tobacco
I'm confused.....
To: Sub-Driver
Auuuggggh! Those ads are
so obnoxious. It's one of those wish-for-a-baseball-bat, scream-at-the-television campaigns.
And I don't smoke.
2
posted on
03/16/2004 4:47:22 PM PST
by
prion
To: prion
Those ads are horrible. If I was a teenager with even the smallest streak of non-conformism, I'd buy a pack as soon as possible.
3
posted on
03/16/2004 5:28:15 PM PST
by
lambo
To: Sub-Driver
What kills me is: they make it look like Big Tobacco is paying this money. How many times do we have to repeat that IT'S THE SMOKERS PAYING TAXES ON CIGARETTES THAT IS PAYING THIS MONEY. NOT BIG TOBACCO AND NOT THE GOVERNMENT! THE SMOKERS ARE PAYING ALL OF THIS MONEY THROUGH T A X E S!
4
posted on
03/16/2004 5:35:54 PM PST
by
SheLion
(Curiosity killed the cat BUT satisfaction brought her back!!!)
To: Sub-Driver; *puff_list; Just another Joe; Great Dane; Max McGarrity; Madame Dufarge; MeeknMing; ...
5
posted on
03/16/2004 5:36:20 PM PST
by
SheLion
(Curiosity killed the cat BUT satisfaction brought her back!!!)
To: Sub-Driver
They talk out of both sides of their mouths. In this
article, Califano said
an estimated 2,000 young people become smokers each day, according to the American Legacy Foundation.Then, in THIS article he says: "Califano said the campaign has worked. In the two years following the launch of "truth", cigarette smoking among high school students fell from 28 percent to 22.9 percent -- a drop of more than one million smokers," he said.
So........which is it?
6
posted on
03/16/2004 5:40:51 PM PST
by
SheLion
(Curiosity killed the cat BUT satisfaction brought her back!!!)
To: SheLion
"How many times do we have to repeat that IT'S THE SMOKERS PAYING TAXES ON CIGARETTES THAT IS PAYING THIS MONEY. "
Like the "Truth" ads this is simply not true - the extortion they were forced to pay came out of their shareholders profits. If it had come out of taxes they would have no control over it and therefore could not "stop" it.
The government GOT and continues to get 100% of the taxes.
7
posted on
03/16/2004 6:09:52 PM PST
by
RS
(Just because they're out to get him doesn't mean he's not guilty)
To: Sub-Driver; SheLion
An estimated 2,000 young people become smokers each day, according to the American Legacy Foundation.The adds must be a waste of money anyway, seeing as they've been using the same number for about ten years now.
8
posted on
03/16/2004 6:19:55 PM PST
by
metesky
("Brethren, leave us go amongst them." Rev. Capt. Samuel Johnston Clayton - Ward Bond- The Searchers)
To: RS
the extortion they were forced to pay came out of their shareholders profitsYou're right about the taxes RS, the settlement money doesn't come out of the taxes on the product, but you're wrong about the money coming out of the shareholders profits.
The only way the tobacco companies would sign off on the MSA was if they could pass the costs of the suit on directly to the consumers.
This means that the smokers are paying the settlement money, not the tobacco companies.
9
posted on
03/17/2004 5:58:27 AM PST
by
Just another Joe
(FReeping can be addictive and helpful to your mental health)
To: Just another Joe
"but you're wrong about the money coming out of the shareholders profits.
The only way the tobacco companies would sign off on the MSA was if they could pass the costs of the suit on directly to the consumers."
Everything is paid by the consumers - and tobacco companies can raise the price of their products at any time - Since the tobacco companies will not LOWER their prices now that they are not having to pay this part of the extortion, the money stays with the shareholders.
10
posted on
03/17/2004 7:59:26 AM PST
by
RS
(Just because they're out to get him doesn't mean he's not guilty)
To: RS
Everything is paid by the consumers - and tobacco companies can raise the price of their products at any time - Since the tobacco companies will not LOWER their prices now that they are not having to pay this part of the extortion, the money stays with the shareholders.Many times, when a company is monetarily chastised by the govt, there are stipulations that the monetary cost of the chastisement must come out of the companies profits, shareholder or otherwise, and NOT be passed directly to the consumer thereby leaving the companies profits down.
The tobacco companies negotiated the MSA in such a way that they COULD pass the costs directly to the consumer, thereby leaving the companies profits exactly where they were BEFORE the MSA.
ANY costs that have been accrued for the MSA have come DIRECTLY out of the consumers pockets, not the companies profits.
You're probably right, the tobacco companies will not lower prices now that they don't have to fund the TRUTHTM advertisements but that will just make the companies profits go up having no affect on the consumers price for the product OR the fact that the consumer is still directly paying the MSA settlement out of their pockets.
11
posted on
03/17/2004 8:11:51 AM PST
by
Just another Joe
(FReeping can be addictive and helpful to your mental health)
To: All
12
posted on
03/17/2004 8:26:48 AM PST
by
SheLion
(Curiosity killed the cat BUT satisfaction brought her back!!!)
To: Sub-Driver
They should be telling people to smoke more, it's how they get their money ;)
13
posted on
03/17/2004 8:27:51 AM PST
by
Trillian
To: Just another Joe
"ANY costs that have been accrued for the MSA have come DIRECTLY out of the consumers pockets, not the companies profits."
I guess the only difference is that now the government itself will get a slice of this via corporate taxes on the money before it goes into shareholders profits.
tomAto or toMato - the consumers pay for it ALL ..costs, taxes,profits,lawsuits,settlements,donations,advertising,limos for the big shots...
ALL of it...
14
posted on
03/17/2004 8:56:36 AM PST
by
RS
(Just because they're out to get him doesn't mean he's not guilty)
To: Sub-Driver
Aww, some people would have to find a real lower paying job, ain't it a shame.
15
posted on
03/17/2004 4:55:38 PM PST
by
Great Dane
(You can smoke just about everywhere in Denmark.)
To: RS
Actually, the tobacco cos have already lowered their prices and will do so again once they no longer have to fund ALF. In Virginia, with only a 2.5¢ state levy on cigarettes, the price of premium brands of the big tobacco cos like Marlboro, Camels, and Pall Mall are only in the $15 to $22 range in outlets not subject to city tobacco taxes. That is not significantly different than the non-participatory cos.
They have to in order to compete and preserve market share. Like Just Another Joe identified, the tobacco cos were allowed to pass 100% of the costs of their "settlement" to customers, which added up to about 35¢-40¢ a pack or $3.50-$4.00 a carton. The only way they could do that was for the states to enact laws forcing non-participatory companies to put a corresponding percentage of their profits into escrow accounts for 25 years. The non-participatory cos found a way to get most of their escrow money back, by just doing business in a few states and not going national. New, smaller cos are springing up all over the place, and the big boys are losing considerable market share and profits.
16
posted on
03/17/2004 5:07:00 PM PST
by
lockjaw02
("The tragedy of life is what dies within a man while he still lives" --Albert Schweitzer)
To: lockjaw02
"Actually, the tobacco cos have already lowered their prices and will do so again once they no longer have to fund ALF"
Having quit 20 years ago, I don't follow the prices that much so you could be right, but I dont see that tobacco companies lowering prices out of the goodness of their hearts since they dont have to pay ALF any more... They MAY do it to regain market share as you say, but that is a corporate marketing decision - they don't HAVE to.
17
posted on
03/17/2004 5:58:50 PM PST
by
RS
(Just because they're out to get him doesn't mean he's not guilty)
To: RS
You're right. They don't have to.
Another thing. Have you ever noticed that whenever tobacco prices get raised, to include tax increases, that nicotine replacement device prices skyrocket in lockstep with the price of cigs? Big Pharma keeps pushing because it's all pure profit for them.
18
posted on
03/17/2004 8:48:45 PM PST
by
lockjaw02
("The tragedy of life is what dies within a man while he still lives" --Albert Schweitzer)
To: lockjaw02
" Big Pharma keeps pushing because it's all pure profit for them."
It's the free enterprise system at work ...
19
posted on
03/18/2004 7:22:51 AM PST
by
RS
(Just because they're out to get him doesn't mean he's not guilty)
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