Jacob Sullum | December 15, 2008
Today the U.S. Supreme Court ruled that the Federal Cigarette Labeling and Advertising Act does not pre-empt a Maine lawsuit that accuses tobacco companies of misleadingly touting "light" cigarettes as safer than regular cigarettes. The 1965 law, which required cigarette manufacturers to put health warnings on their packages, also barred any other "requirement or prohibition based on smoking and health...imposed under State law with respect to the advertising or promotion of any cigarettes." The five-justice majority concluded (PDF) that the Maine Unfair Trade Practices Act, as applied to the marketing of "light" cigarettes, does not amount to such a requirement or prohibition.
As I've said before, the "light" cigarette fraud (assuming it does in fact amount to that) is one in which the federal government has been entangled from the beginning. This case also illustrates a problem created by the labeling law: Both the warnings themselves and the clause that has been read to shield the cigarette manufacturers from liability have encouraged them to be less honest than they otherwise would have been compelled to be.
Damon Root noted the oral arguments in this case a couple of months ago.
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Light cigarettes cause less cancer in exactly the same that what light beer causes less drunkenness. Duh!
Anytime a company complies with a regulation or posts a warning
label, their compliance should be a defense against
liability.
The state, by establishing the regulation or the warning label, has
said, has it not, that this is the standard of care, or this is
adequate notice of the hazards? Since a compliant company has met
the standard of care and/or given adequate notice of the hazards,
what basis is there for holding them liable?
Both the warnings themselves and the clause that has been
read to shield the cigarette manufacturers from liability have
encouraged them to be less honest than they otherwise would have
been compelled to be.
There's about the same level of evidence for this statement as the
toxic effects of 2nd hand smoke. Those poor, poor tobacco companies
would never ever think of misleading their customers if it weren't
for those goshdarn labeling requirements.
R C Dean,
The regulation required them to provide information.
It did not require them to market their product as more
healthy.
It seems that the suit is not about providing information, it is
about how the information was used. Maine's law is about deceptive
use of information. The suit may lose, but I don't see how the
federal regulation to provide information is a shield against using
that information deceptively.
The state, by establishing the regulation or the warning
label, has said, has it not, that this is the standard of care, or
this is adequate notice of the hazards?
Not exactly. As an example, imagine if the state required
businesses to post notices that said "Warning: These Steps May Be
Icy". That would not release the store owner from liability from
falls on icy steps.
As an example, imagine if the state required businesses to
post notices that said "Warning: These Steps May Be Icy". That
would not release the store owner from liability from falls on icy
steps.
It should. If the state is going to require that a notice be
posted, why is that notice not deemed adequate warning of the
hazards that it addresses?
Now, if there is not mandatory posting, I think you could bring a
case arguing that the notice wasn't adequate. But if the notice
meets the requirements imposed by the state, why wouldn't it be
deemed to be adequate?
The regulation required them to provide information.
It did not require them to market their product as more
healthy.
Yeah, I know, this isn't the best case for me to trot out my
hobbyhorse.
I'd like to see every tobacco company refuse to do business in Maine. Watchiung the tax collectors howl would be instructive.
I actually agree with TAO here.
A fraud is committed when someone misrepresents a material fact.
Let's say the labeling regulation made them post the "ingredients"
and level of tar on the box of cigs. And they did that. But in the
ads they said "New Marlboro Lights, All the flavor, half the tar
and twice the health!" implying that these cigarrettes were
healthy. And lets say they knew better.
Not they are in compliance but they are still misrepresenting a
material fact they know to be false as true. I think they are still
liable.
All the flavor, half the tar and twice the health!" implying
that these cigarrettes were healthy. And lets say they knew
better.
I don't personally remember ad claims that light cigarettes were
healthy. Less harsh and dangerous than full flavor smokes, yes.
Government measurements certainly provided evidence that Newport
Lights were less bad (better) for your health than regular
Newports.
Some of these "healthy" light ciogarette adds should be floating
around on the internet, no? Let me see some that claim that light
cigarettes are healthy. Please send copies of these dispicable ads
to my E-mail or post links right here at H&R. Thank you.
Shown any ad (or packaging) for light cigarettes, a rational,
honest, reasonably intelligent individual would be easily capable
of determining whether the company was engaging in fraudulent
misrepresentation.
I also think any rational, honest, reasonably intelligent
individual will be promptly dismissed from the pool of
jurors.
Personally, I don't ever recall seeing anything that claimed,
implied, suggested, or even hinted that light cigarettes were any
healthier than the regular variety.
I'll check this thread tomorrow for all the evidence of
fraudulent light cigarette ads.
Should be hundreds, right?
cunny
It's liberal to hold people responsible for fraud? Do you think
it's liberal whenever anyone wins any lawsuit? Or is the general
idea of tort liability a liberal one?
J sub D
My hypo was just that, a hypo presenting a case where someone
follows a law or regulation but should still be held liable.
"The lawsuit said cigarettes like Marlboro and Cambridge Lights are
deceptively designed and marketed, and that a smoker of those
brands consumes the same amounts of tar and nicotine as a smoker of
regular cigarettes."
Apparently the issue was not that they represented the lights as
healthier, but that they actually misrepresented the ingredients
(actually the issue before the SCOTUS was the more arcane one of
whether a suit over this was pre-empted by the federal law).
I really would think that tort law would be a pillar of any Libertopia. It's what is supposed to replace all the regulatory stuff.
Apparently the issue was not that they represented the
lights as healthier, but that they actually misrepresented the
ingredients (actually the issue before the SCOTUS was the more
arcane one of whether a suit over this was pre-empted by the
federal law).
Bonus points if you can tell me who did the measurements of tar and
nicotine that was in the ads and on the packs?
As near as I can tell they are being sued for repeating government
collected data. That's why I'm so curious about these allegedly
deceptive ad practices that I don't remember.
Of course you agree with him, he's on the liberal side of
this issue.
I am? As far as I can tell, RC Dean asked a straightforward
question and I provided him a factual answer: compliance with
federal regulations does not mean that you are within the standard
of care to release you from civil liability in tort law.
Forgive me for asking a stupid question, but aren't light
cigarettes actually "healthier" than regular ones?
I actually disagree with MNG's conclusion in this hypo:
"New Marlboro Lights, All the flavor, half the tar and twice
the health!" implying that these cigarrettes were healthy. And lets
say they knew better.
They never made a claim that they were healthy, just that they were
healthier. I find that to be sneaky
Madison-Avenue-style advertising and personally shady, but I do not
view it as constructively fraudulent, any more than "half-the-fat
foods" are fraudulent for advertising themselves as healthier than
full-fat alternatives.
It's true they are healthier, it's just not true that they are
healthy (whatever that means).
Just for everyone's information, here is a snippet from the
opinion (http://www.supremecourtus.gov/opinions/08pdf/07-562.pdf
page 3)
Specifically, [the Maine 'light smoker' respondents] allege thatpetitioners' advertising fraudulently conveyed the mes-sage that their "light" cigarettes deliver less tar and nico-tine to consumers than regular brands despite petitioners' knowledge that the message was untrue.
This, if correct (it's from the start of the majority opinion
written by Stevens, and goes onto to say the facts are in dispute)
is a very different set of facts then 'they said their cigarettes
were healthy'. Because I do seem to remember cigarettes as being
advertised as having less tar (but not wrt nicotine). So if they
said 'less tar' and they did not provide 'less tar' I would say
they have a case.
The case itself seems to more of a jurisdictional fight, i.e does
federal law that requires labelling cigarettes pre-empt any and all
state regulation. I used to be more of a commerce clause
supremecist, although not at all liking stuff like Wickard and
Raich, but generally believing that federal law premeption creates
more efficicient markets by eliminated a patchwork of over 51
different sets of regulations. Recently, however, I'm not so sure.
Especically with Wickard and Raich, trying to restore state
soveriegnty seems to almost a important end in itself.
I've read some stuff by anti-smoking folks who claim that they
are actually no healthier, but my brief perusal of that stuff made
me also think that their claims were a little fishy, for example
they might have been simply implying that a person who buys lights
will just smoke more cigarettes until they get the same amount of
nicotine as they would from a non-light cigarette. In my mind at
least this is not fraudelence.
On the other hand they claim that internal company documents show
that the management knew that people bought "light" brands because
they thought there was a health advantage, that they then purposely
played to this and that they knew that they were in actuality not
only not healthier but not even really "lighter."
I'm of the opinion that just because they complied with a labeling
regulation there still COULD well be liability, but from what I've
read I'm not sure that were I on the jury in this actual case I
would find it.
Here's some stuff on this (I don't claim it's the best the
anti-smoking folks can do or the worst or if it is akin to the suit
at issue):
http://tobaccofreekids.org/research/factsheets/pdf/0130.pdf
http://cancercontrol.cancer.gov/tcrb/monographs/13/
btw-J sub D the ad for "True" light cigs quoted in the first might
fit the bill of what you are talking about
Perusing both of those sources, I would find that the
advertising is slick and perhaps misleading but does not rise to
the level of fraud. Citing some of the ads from MNG's first
link:
A 1952 Viceroy ad was more
blunt: "Filtered Cigarette Smoke is Better for Your
Health"
Better for your health =/= good for your health.
"All the fuss about smoking got me thinking I'd either quit or
smoke True. I smoke True.
The low tar/low nicotine cigarette. Think about it."
That sounds like a personal testimony. Whatever the individual
reading the ad got out of it is not RJR's fault.
Like I said, there is slick wording present in almost every ad, but
constructive fraud requires a lot more than that. The cigarette
companies are convenient punching bags / ATMs for greedy state and
federal governments.
I don't personally remember ad claims that light cigarettes
were healthy. Less harsh and dangerous than full flavor smokes,
yes.
TAO and J sub,
The suit says that despite claims they are healthier (people saying
that the suit alleges that they said "healthy" are attacking a
straw man), when they are not in fact healthier. I was a regular
Camel Lights smoker until recently. I pretty much knew that the
"Lights" were in reference to the flavor, not to the cancer giving
powers.
Notice this part in the original post:
pre-empt a Maine lawsuit that accuses tobacco companies of misleadingly touting "light" cigarettes as safer than regular cigarettes.
So far every comment defending the tobacco companies has conceded that they advertised lights as safer. The Maine suit alleges that they were misleadingly advertiser as safer, when they are not safer.
Does anyone know if there are any actual studies about light cigarettes and cancer or other smoking-related disease rates? Or is this all just speculation?
As far as I can tell, RC Dean asked a straightforward
question and I provided him a factual answer: compliance with
federal regulations does not mean that you are within the standard
of care to release you from civil liability in tort law.
I wasn't so much asking a question about whether regulatory
compliance is a defense to civil liability; I know good and well
its not. I was more making a proposal that it should be, and asking
why not.
To take this case as an example, I don't think making a mandatory
disclosure should be a defense against fraud based on other
statements.
Mo,
One light cigarette, smoked in the same manner as a full flavor
cigarette delivers less tar and nicotine to the lungs. That is less
unhealthy, or escewing double negatives, healthier.
Light beer gets you less drunk than regular beer. Yeah, Bud Light
drinkers may just drink more to get the desired effect, but the
statement is still true.
MNG, thanks for the links. It appears that private industry was way
ahead of the regulators, doesn't it? I still think the lawsuit is
BS, but I'll admit that I think nearly every tobacco lawsuit is BS.
I've yet to find a smoker who was unaware of the dangers inherent
in inhaling combustion products prior to starting cigarettes.
J sub,
The difference between the light beer and light smokes case is that
you can't drink a light beer in such a manner that the amount of
alcohol is affected. People smoke cigarettes in ways that tar and
nicotine are the same for light and full flavor cigs.
I also think most tobacco suits are b.s., but this one strikes me
as pretty fair one. Tobacco companies saying that certain
cigarettes are healthier than others when their own internal
documents and research contradicts it is pretty standard fraudulent
advertising.
I also think most tobacco suits are b.s., but this one
strikes me as pretty fair one. Tobacco companies saying that
certain cigarettes are healthier than others when their own
internal documents and research contradicts it is pretty standard
fraudulent advertising.
You may be right. The tobacco companies would have been on
assailable ground if they had just printed the government figures
and let people assume the rest. They knew (not illegal), withheld
the info (probably not illegal), and said the opposite (probably
illegal).
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