The American Legacy Foundation won its court battle this week when the Delaware Supreme Court ruled that the foundation’s “truth” campaign does not violate the Master Settlement Agreement that governs tobacco marketing.
Meanwhile, the foundation has hired GSD&M veteran Eric Asche as VP-marketing. That, coupled with the closure of the court case, could give new momentum to the six-year-old “truth” campaign, which has been hampered by the case and by cuts in funding.
The suit, filed by Lorillard Tobacco Co. in February 2002, could have derailed the campaign and shut down the Washington-based foundation, which was formed and originally funded by tobacco company payments through the 1998 MSA. Delaware Chancery Court ruled in ALF’s favor in August 2005; the Supreme Court ruling this week upholds that initial judgment.
The Foundation continues to seek funding to replace the MSA-mandated funding from participating tobacco companies that ended in 2003. ALF still gets “base foundation” payments from states that put aside some of their own MSA proceeds to help fund ALF through 2008 (PROMO Xtra, March 8, 2006).
Lorillard’s suit claimed that “truth” ads vilified tobacco companies and their employees, which is prohibited by the MSA (PROMO Xtra, Aug. 24, 2005). Arnold Worldwide, Boston, and Crispin, Porter + Bogusky, Miami, collaborate on the ad campaign and its accompanying tour, both targeting teens.
The Supreme Court acknowledged that some “truth” ads do refer to tobacco companies—and one refers specifically to Lorillard—but ruled that the ads don’t vilify the industry, Lorillard, or its executives.
“The advertisements are not insidious, disparaging, offensive, belligerent, nor fiercely or severely critical. Nor are they denouncements that are both unfounded and abusive or slanderous,” the court wrote in its decision. “The tone of the youth in the advertisements is usually expressly friendly or helpful, even if implicitly drawing attention to unflattering facts about past actions of tobacco companies or their employees. The youth’s messages, and thus the advertisements themselves, do not qualify as personal attacks or vilifications.”
Separately, ALF has hired Asche as senior VP-marketing; he had been account director at ad shop GSD&M, Austin, TX, where he worked with the foundation on several campaigns. He replaces Beverly Kastens, who had been VP-marketing. Kastens left ALF to open a consulting business, and will work with the foundation as a client. Asche will manage ALF’s campaigns for youth prevention and adult cessation, and develop new programs.
“Eric’s work on national brands and his diverse experience in both advertising and marketing will be very beneficial as the foundation builds on its existing programs, but also seeks to further creatively leverage our resources and build partnerships. As the foundation’s funding continues to decrease, bringing this caliber of expertise in house will be invaluable,” said Joseph Martyak, the foundation’s executive VP-marketing, communications and public policy, in a statement.
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