TOBACCO CONTROL LAWS

Schwab v. Philip Morris

Amidst allegations of fraudulent marketing and deceptive practices by cigarette manufacturers, a lawsuit under the Racketeer Influenced and Corrupt Organizations Act (RICO) was brought forth by current and former smokers. The class alleged the tobacco companies duped smokers into believing that “light” cigarettes were less harmful to them. Despite lingering questions about when consumers became aware of the deception, class certification was approved, and the court sanctioned the use of statistical evidence to establish liability and damages,. This case highlights the ongoing battle between public health concerns and corporate accountability in the tobacco industry.

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Schwab et al. v. Philip Morris, Inc., et al., 449 F. Supp. 2d 992 (E.D.N.Y. 2006).

  • United States
  • Sep 25, 2006
  • U.S. District Court, Eastern District of New York
View Case History

Parties

Plaintiff Barbara Schwab (class action)

Defendant

  • Philip Morris, Inc.
  • R.J. Reynolds Tobacco Co.
  • Brown & Williamson Tobacco Corp.
  • Lorrilard Tobacco Co.
  • Liggett Group, Inc.
  • America Tobacco Co.
  • Altria Group, Inc.
  • British American Tobacco (Investments) Ltd.

Legislation Cited

Racketeer Influenced and Corrupt Organizations (as amended), 18 USC Ch. 96

18 U.S.C. §§ 1341, 1343

Related Documents

Appendix to the decision

Type of Litigation

Enforcement Action by a Private Individual or Private Entity
Some jurisdictions allow an individual or organization to initiate an action against another private party who is not following a particular law. For example, a person may sue a restaurant that allows smoking despite a smoke free law. If the plaintiff is claiming the violation of the law caused physical harm, this may also be a personal injury case.
Personal Injury
An individual or organization may seek civil damages against a tobacco company based on the claim that the use of tobacco products causes disease or death. Some of these cases will relate to general tobacco products, while others will relate to specific subcategories of tobacco products--for example, light or low products, menthol or other flavored products. Additionally, there may be cases relating to exposure to secondhand smoke.

Tobacco Control Topics

Contents and Disclosures Measures
Measures for testing, measuring, regulating, or disclosing the contents and emissions of tobacco products. (See FCTC Arts. 9 and 10)
Packaging and Labeling Measures
Measures to regulate the marketing on tobacco packages. This includes both bans on false, misleading, deceptive packaging, as well as required health warnings on packaging. (See FCTC Art. 11)
Advertising, Promotion and Sponsorship
Measures restricting any form of direct or indirect tobacco advertising, promotion and sponsorship. (See FCTC Art. 13)

Substantive Issues

Consumer Protection Violation

Any violation of a law designed to ensure fair trade, competition, or the free flow of truthful information in the marketplace. For example, a government may require businesses to disclose detailed information about products—particularly in areas where safety or public health is an issue.

Industry-Perpetrated Fraud
The tobacco industry may have perpetrated a fraud upon the public or the courts by presenting false information or deliberately hiding known-facts.
Legal Product
Tobacco is a legal product and the tobacco industry is a legal industry.
Sufficiency of Scientific Evidence
A discussion on whether current scientific evidence is sufficient to justify the regulatory measures.
Acceptance of Known Risk

A plaintiff’s liability may be limited where she has accepted the risks and consequences of her behavior.  The tobacco industry may argue that the dangers of smoking are well known, so liability should be limited.

Type of Tobacco Product

None

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