BACKGROUND NOTE: This document, Social-Political Context of Cigarette Sales and Use in
the U.S. - 1987, analyzes problems facing the tobacco industry,
including: the decrease in social acceptability of smoking, the increase
in attemtps to enact local public-smoking restrictions, product
liability suits, the possibility of advertising restrictions, federal
excise taxes, and legislation to require that cigarettes be fire-safe.
The document reveals not only the industry's attitudes on these
subjects, but also tells us what it fears most and what, in the
industry's perception, really works to decrease smoking rates.
Quotes
1. Social Acceptability
There is convincing evidence that the public perception of risk [from
ETS] in general has heightened, due perhaps to major changes in the
structure of society -- weakened religion, health crazes, ageing
population, etc. Whatever the reason, smoking is now perceived as a
health risk to nonsmokers....
...Since the current decrease in social acceptability, and all the
negatives it entails, in based on the powerful ETS weapon, we have also
enclosed a one page summary on this subject as a second attachment to
this memo. It is apparent that the effects of ETS on others is now the
most powerful anti-smoking weapon being employed against the industry.
2. Product Liability
...Almost half of the 130 pending product liability suits involve PM and
thus this issue is of substantial interest to us....In the unlikely (but
possible) event of plaintiffs winning some of these cases, a deluge of
suits would be spurred on by 'hungry' lawyers. It is possible that at
some point in time a significant portion of the retail sales price of
cigarettes would be required to fund these suits and related damage
awards, i.e., a significant price increase would be necessary.
3. Cigarette Taxation
This is a complicated but critical issue. Cigarettes are not only taxed
at the federal level but at the state and possibly local level. To the
extent that governmental bodies tend to regard this tax as "cash flow"
there is a degree of reluctance to destroy the industry. Also, many
realize this is a very regressive tax, which tends to restrain some
legislators (except the zealots). The problem with tax increases is
that it does decrease consumption, just as desired by the social
engineers posing these increases want to see.
4. Advertising and Promotion
The cigarette industry accepted a total ban on television and radio
advertising in 1972. Opponents of cigarette use have convinced
themselves (and some others) that a total ban on advertising would
undermine the industry. It is by no means certain that the Supreme
Court would not uphold such a law, despite the commercial speech
interpretation of the First Amendment...
5. 'Self-Extinguishing' Cigarette Legislation
Cigarettes continue to be association with a large number of fires, many
of which cause loss of life and property...
If legislation is passed [mandating fire-safe cigarettes] it would
probably be necessary to modify several aspects of current cigarette
construction. This could have a negative impact on per unit costs. Of
more concern, it would be hard to maintain subjective acceptability of
our major brands if design changes were legislated into these products.
This is particularly unfortunate since there is really little reason to
expect any decrease in fire safety without some nationwide effort to
treat fabrics with fire retardant chemicals.
Summary
The increased success of anti-smoking forces at undermining the social
acceptability of smoking is a real and present challenge for our
industry. Rebuttal is crucial but reversal of the flow of events
depicted here is unlikely. This gloomy picture of 1987 and beyond must
be interpreted in terms of opportunity as well as challenge....A threat
to the industry can be an opportunity for the company which can find
consumer acceptable answers to the types of challenges discussed in this
memo.
Anne Landman
American Lung Association of Colorado, West Region Office
Grand Junction
Title: Social-Political Context of Cigarette Sales and Use in the U.S.
- 1987 (Personal and Confidential Philip Morris document)
Author: R.N. Ferguson and M. Waugh
To: Strategic Planning Committee
Date: May 27, 1987
Site: Philip Morris http://www.pmdocs.com/
No. of Pages: 4
URL: http://www.pmdocs.com/getallimg.asp?DOCID=2050864094/4097
(Note: this copy is very hard to read, but readability is greatly
improved by using the magnification function on the site).
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