In 1999 the US Department of Justice initiated a lawsuit over misleading statements the industry had made about cigarettes and their health effects; a document filed in the US District Court for the District of Columbia Monday evening by attorneys for Altria, BAT and the Justice Department, outlined the agreement all parties have reached. This involves Altria and BAT buying television spots, mostly on ABC, CBS or NBC, and full print ads in 45 or more newspapers, starting as soon as next month, the Wall Street Journal reported . The TV spots will run in prime time five days a week for 52 weeks, while the print ads will run on five weekends spread over four months and ads will also appear on the newspapers’ websites. These will display court-mandated text , with copy including: “Altria, R.J. Reynolds Tobacco, Lorillard, and Philip Morris USA intentionally designed cigarettes to make them more addictive” and “More people die every year from smoking than from murder, AIDS, suicide, drugs, car crashes, and alcohol, combined” . Altria, which owns Philip Morris USA, estimated that it will spend $31m fulfilling its obligations; BAT declined to cite a figure. “I think they’re getting off kind of lightly,” said John Boiler, co-founder of the 72andSunny agency, which also does work for the anti-tobacco, non-profit Truth campaign. “The good news for the tobacco companies is they’ll avoid a lot of their younger audience,” he explained, since those consumers would be more likely to see a video ad on Facebook than a prime-time TV ad. 2016 research by the Centers for Disease Control and Prevention in Atlanta has suggested that younger consumers are more likely to be exposed to ads for e-cigarettes: 70% of US teens had seen ads for e-cigarettes – most often in-store (55%), but also online (40%), on TV or in movies (37%) and in print (30%).
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The Malaysian government has raised taxes on cigarettes. Is this a way to increase the falling government tax revenue? The National Health and Morbidity Survey 2015 reported, about five million of the Malaysian population aged 15 and above were smokers. Deaths caused by smoking are set to increase to 30,000 in the year 2020. The government has decided to raise cigarette prices once again to curb the nation’s rising cigarette consumption. Using cigarette tax hike as a solution has failed to work Price hikes intensified around the year 2014, and there was a sharp decline of 12% in legalised sale of cigarettes. During the most recent tax hike, prices for a pack of 20 cigarettes rose from RM17 (US$4.02) to RM21.50 (US$5.08). Illicit cigarette trade filled up the gap left by legal sales. Its penetration rate increased from 36.3% in 2011 to 51% in 2016. This resulted in an estimated loss of RM4.4 billion (US$1.06 billion) in government revenue last year.
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