A California judge fined RJ Reynolds Tobacco Co. $20 million last week for placing ads in magazines popular with teens, including "Sports Illustrated," "Spin," "Vibe," "Rolling Stone," "Hot Rod," and "Car and Driver."
The ruling found that RJR violated the 1998 Master Settlement Agreement by running ads in magazines whose audience is 15 percent or more teens. San Diego Superior Court judge Ronald Prager said RJR made "absolutely no changes to its advertising campaigns," didn't include in its marketing plans the MSA-stated goal of reducing youth exposure to tobacco ads, and didn't track whether the company was helping to cut youth smoking.
The ruling is "akin to censorship," says RJR executive vp-external relations Tommy Payne: "It imposes an illogical double standard. ... The same magazines that are now 'too youthful' for Reynolds' ads are still acceptable forums to advertise wine, beer, and liquor, violent and graphic movies, and other tobacco companies' cigarette brands. The company said it plans to appeal.
Five states filed suits in March 2001 seeking to curb RJR's print ads, racetrack signage, and brand matchbooks (May 2001 PROMO). The suit filed by California claimed that RJR print ads reached 95 percent of teens 12 to 17 an average of 50 times in 2000. A December ruling found that RJR's ads at sporting events violated the MSA.
A Los Angeles court fined R.J. Reynolds $14.8 million in May for handing out 100,000-plus packs of free cigarettes on public grounds. In January 2001, RJR settled with the California attorney general for distributing free cigarettes through the mail without verifying the identity and age of recipients.
