(Adds analysis about the impact of tobacco advertising litigation and comments from Philips Morris USA and the Campaign for Tobacco-Free Kids.)
By Fawn Johnson Of DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- The Federal Trade Commission on Wednesday rescinded a 40-year-old rule that allows tobacco companies to base their claims about the tar and nicotine levels of cigarettes on a testing method approved by the commission.
The FTC's decision means that cigarette advertisers will no longer be able to claim that their tar and nicotine ratings are endorsed by the FTC.
In the past, the FTC has used its tobacco testing method to regulate cigarette advertising and punish companies for making misleading claims about tar and nicotine levels. Despite revoking the testing rule, the FTC said it intends to continue monitoring tobacco advertising. For example, cigarette makers may risk legal action if they imply that tar and nicotine ratings are government-sanctioned.
The FTC's shift will impact tobacco companies such as Altria Group Inc.'s (MO) Philip Morris, which sells cigarettes labeled as "light" and lower in tar and nicotine.
Altria has said federal regulation of its advertising should bar consumer product liability lawsuits against it in state courts, where numerous cases against tobacco companies are pending. That argument was a central part of Altria's appeal in a pending U.S. Supreme Court case brought by Maine smokers over light cigarette marketing.
Tobacco critics said the agency's change will strengthen the position of lawsuits against the industry.
"Today's FTC action also provides important support for ongoing litigation to hold cigarette manufacturers accountable for the harm caused by their deceptive marketing of 'light' and 'low-tar' cigarettes," said Matthew Myers president of the Campaign for Tobacco-Free Kids. "The manufacturers' ability to claim that nicotine and tar ratings are based on an FTC-approved testing method has been an integral part of this low-tar lie."
In a statement, Philip Morris USA said the company is studying the FTC's action. In earlier comments to the agency, Philip Morris said rescinding the FTC guidance would be confusing to customers. It also sought, but didn't get, a one-year advance warning of any FTC change to allow manufacturers time to make changes in packaging or other materials.
For 40 years the FTC has endorsed the "Cambridge Filter Method," which tests tar and nicotine levels by "smoking" cigarettes on a machine.
When the FTC endorsed the testing method, it sought to promote standardized information about tar and nicotine levels in different cigarettes to help consumers make informed decisions about the cigarettes they smoked.
"Today, however, the scientific consensus is that machine-based measurements of tar and nicotine yields based on the Cambridge Filter Method do not provide meaningful information on the amounts of tar and nicotine smokers receive from cigarettes," the FTC said in a statement.
Cigarette makers' statements about tar and nicotine yields from the test "are confusing at best, and are likely to mislead consumers...The Commission will not allow its stamp of approval on a test method that is confusing or misleading to consumers," the FTC said.
The commission's four members voted unanimously to rescind the rule.
In a concurring statement, Commissioner Pamela Jones Harbour said scientists should "redouble their efforts" to develop a meaningful measure of tar and nicotine. She also called for Congress to pass a bill that would give the Food and Drug Administration the authority to regulate tobacco products.
Commissioner Jon Leibowitz said cigarette advertisers now won't be able to use the "cloak of government sponsorship" to sell their products.
"Simply put, the FTC will not be a smokescreen for tobacco companies' shameful marketing practices," he said.
-By Fawn Johnson, Dow Jones Newswires; 202-862-9263; fawn.johnson@dowjones.com
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(END) Dow Jones Newswires
November 26, 2008 17:10 ET (22:10 GMT)

Publié le 26 novembre 2008 Copyright © 2008 Dowjones