United States v. Philip Morris USA, et al.

In 1999, the United States filed a lawsuit against the major cigarette manufacturers and related trade organizations alleging that defendants fraudulently misled American consumers for decades about the risks and dangers of cigarette smoking and exposure to secondhand smoke in violation of the Racketeer Influenced Corrupt Organizations Act (RICO). In 2006, the court found that defendants violated RICO and that there was a reasonable likelihood that defendants would continue to violate RICO in the future. On appeal, the district court’s findings were upheld, in part, vacated, in part, and remanded, in part, to the district court. After the U.S. Supreme Court declined to hear appeals from both sides in the case in June 2010, the district court began to implement the 2006 final order.

To prevent and restrain future RICO violations, the court provided several forms of injunctive relief including enjoining defendants from (1) committing further acts of racketeering relating to the manufacturing, marketing, promotion, health consequences or sale of cigarettes; (2) making further false, misleading or deceptive statements or representations about cigarettes; and (3) conveying or using any express or implied health message or health descriptor for any cigarette brand including the terms “light” or “low tar.” The court also required defendants to make court-approved corrective statements about the adverse health effects of smoking, the addictiveness of smoking and nicotine, the lack of any significant health benefit from smoking so-called “low tar” cigarettes, defendants’ manipulation of cigarette design to optimize nicotine delivery, and the adverse health effects of tobacco smoke exposure. The court required additional transparency measures of defendants including that defendants provide the government with access to disaggregated data on the marketing of cigarettes for ten years and continue to make public their internal corporate documents produced in U.S.-based smoking and health litigation for 15 years. Last, the court disbanded several tobacco industry trade or research associations.

United States v. Philip Morris USA, Inc., et al., 449 F. Supp. 2d 1, United States District Court for the District of Columbia (2006).

  • United States
  • Aug 17, 2006
  • U.S. District Court for the District of Columbia

Parties

Plaintiff United States of America

Defendant Philip Morris USA, Inc. (f/k/a Philip Morris, Inc.), et al.

Third Party

  • Tobacco-Free Kids Action Fund
  • American Cancer Society
  • American Heart Association
  • American Lung Association
  • Americans for Nonsmokers' Rights
  • National African American Tobacco Prevention Network

Legislation Cited

Related Documents

Type of Litigation

Tobacco Control Topics

Substantive Issues

Type of Tobacco Product

None

"All Defendants, Covered Persons and Entities are permanently enjoined from participating in any way, directly or indirectly, in the management and/or control of any of the affairs of CTR, TI, or The Center for Indoor Air Research ("CIAR"), or any successor entities of CTR, TI, or CIAR, or other entity affiliated with CTR, TI, or CIAR, known to the Defendant, Covered Person or Entity to be engaged in any act of racketeering; from having any dealings about any matter that relates directly or indirectly to the management and/or control of CTR, TI, or CIAR, or any successor or affiliated entities known to them to be engaged in any act of racketeering; and from reconstituting the form or function of CTR, TI, or CIAR, except that the prohibition against reconstituting the form or function of TI shall not prohibit the Defendants from engaging in lobbying activity that is otherwise permissible. All Defendants, Covered Persons and Entities are permanently enjoined from making, or causing to be made in any way, any material false, misleading, or deceptive statement or representation, or engaging in any public relations or marketing endeavor that is disseminated to the United States public and that misrepresents or suppresses information concerning cigarettes. Such material statements include, but are not limited to, any matter that: (a) involves health, safety, or other areas with which a reasonable consumer or potential consumer of cigarettes would be concerned; (b) a reasonable consumer or potential consumer would attach importance to in determining whether to purchase or smoke cigarettes; or (c) the Defendant, Covered Person or Entity making the representation knows or has reason to know that its recipient regards or is likely to regard as important in determining whether to purchase cigarettes or to smoke cigarettes, even if a reasonable person would not so regard it. All Defendants, Covered Persons and Entities are permanently enjoined from conveying any express or implied health message or health descriptor for any cigarette brand either in the brand name or on any packaging, advertising or other promotional, informational or other material. Forbidden health descriptors include the words "low tar," "light," "ultra light," "mild," "natural," and any other words which reasonably could be expected to result in a consumer believing that smoking the cigarette brand using that descriptor may result in a lower risk of disease or be less hazardous to health than smoking other brands of cigarettes. Defendants are also prohibited from representing directly, indirectly, or by implication, in advertising, promotional, informational or other material, public statements or by any other means, that low-tar, light, ultra light, mild, natural, or low-nicotine cigarettes may result in a lower risk of disease or are less hazardous to health than other brands of cigarettes."