Court orders tobacco industry to turn over documents

March 17, 1998
Web posted at: 8:15 p.m. EST (0115 GMT)

ST. PAUL, Minnesota (CNN) -- A Minnesota appeals court ordered the tobacco industry Tuesday to give 39,000 internal industry documents to the state of Minnesota by Thursday, barring a stay from the state Supreme Court.

The appeals court ruled the industry must hand over the papers by noon Thursday "unless a stay is granted by the Minnesota Supreme Court." It was not clear immediately if the tobacco industry would appeal the ruling.

On March 7, Ramsey County District Judge Kenneth Fitzpatrick ruled that the industry documents contained evidence of crime or fraud and are not protected by the attorney-client privilege as the industry had claimed.

In his decision, the judge cited several examples, including one from the files of British American Tobacco Co. that indicated the company was keeping track of the starting habits of 5-year-olds.

Minnesota Attorney General Hubert H. "Skip" Humphrey III has called the documents the "crown jewels" of more than 33 million documents that have been turned over to Minnesota in its case.

The documents have caught the attention of Congress. Rep. Thomas Bliley, a Virginia Republican, has subpoenaed them, and it is unclear if he will await further appeals. If the industry does not respond to a congressional subpoena, it runs the risk of being held in criminal contempt.

The state of Minnesota and Minnesota Blue Cross and Blue Shield are suing the industry for $1.77 billion and an unspecified amount in punitive damages, contending that the industry conspired to keep the dangers of cigarettes secret, marketed their product directly to children and manipulated nicotine levels to keep smokers hooked.

In his second day of testimony, Robert Dolan, a Harvard University marketing professor, said cigarette advertisements of the 1950s made explicit health claims. Liability concerns led the industry to change them to implied claims, he said.

Dolan cited a 1952 advertisement for Viceroys that called the cigarettes "Better for your health." A year later, another Viceroy ad said the "New King-Size Viceroys give double-barrel health protection."

A few years later, a Lark ad cited the cigarette's "gas-trap" filter, saying, "Lark isn't perfect, but it lets you have a lot less on your mind."

"It offers you reassurance," said Dolan. "You don't have to quit."

Low-tar cigarettes were expanded into product lines that included low-tar and ultra low-tar cigarettes. "The result of that is to keep people in the market rather than have them quit," Dolan said.

Earlier, R.J. Reynolds Tobacco CEO Andrew Schindler testified that he had no evidence that low-tar, low-nicotine cigarettes are less damaging than "full-flavor" cigarettes.

Dolan also testified that marketers developed and exploited sophisticated profiles of their target audiences.

A 1983 Brown & Williamson document from one marketing executive to another said, "Raleigh and Belair smokers are addicted to smoking. They smoke primarily to reduce negative feeling states rather than for pleasure. Given their low income, smoking represents a financial drain on family resources. Saving coupons for household items helps reduce the guilt associated with smoking."

The memo added that smokers of the company's Raleigh and Belair cigarettes tended to be family-oriented, suffered from "low self-esteem" and considered themselves "not worthy of self-indulgence." That is why the company's coupons were redeemable not for personal items but for household goods.

Dolan added that smokers tend to be loyal to their brands and that only 2 percent to 3 percent switch brands in any given year. As a result, the main source of new customers is new smokers. Two-thirds of new smokers are under age 18, Dolan said, adding that the industry pursued them in their ads despite public statements to the contrary.

Dolan cited a 1974 R.J. Reynolds presentation to the company's board of directors, which was entered into evidence several weeks ago. It said, "Vantage has shown the ability to attract new and younger smokers. ... Spending has been increased in 1975 with more targeted efforts against young adults to more fully exploit this potential."

The company has referred to smokers under age 18 as "young adults," a Reynolds memo indicated.

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Related stories:

• Most smokers wish they'd never started, witness says - March 16, 1998
• Expert says tobacco pitched ads to young smokers - March 9, 1998
• Tobacco industry wins reprieve - March 8, 1998
• Document: Potential smoking habits of 5-year-olds reviewed - March 7, 1998

Related sites:

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  • Tobacco Trials - State List
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