R.J. Reynolds Fined for Targeting Teens June 10, 2002
News Summary
A California Superior Court judge fined R.J. Reynolds (RJR) Tobacco Company $20 million for violating the 1998 tobacco settlement by running ads in magazines with a high teenage readership, the Associated Press reported June 6.Superior Court Judge Ronald Prager ruled that the nation's No. 2 tobacco company reached as many or more teens than adults by advertising in such magazines as Spin, Vibe, Hot Rod, and Rolling Stone.
"It was, or should have been apparent to the skillful and bright people who managed RJR's multimillion-dollar, sophisticated print advertising campaign that youth were exposed to tobacco advertising at levels substantially similar to targeted adult smokers," Prager said.
The case was brought by the California attorney general's office. It addition to the fine, the lawsuit asked that RJR be banned from advertising in 50 magazines frequently read by teens.
Prager's ruling didn't ban specific magazines, but ordered the tobacco company to take "reasonable measures" to reduce its reach to teenagers.
Although the ruling applies soley to California, Deputy Attorney General Karen Leaf said it would require RJR to change its practices in magazines with a nationwide circulation.
RJR said is would appeal the ruling. "We think it disregards the facts, the law, and the master settlement agreement," said spokesman Tommy J. Payne.
Although the nationwide tobacco settlement with U.S. states does not specifically mention magazine advertising, it prohibits tobacco companies from taking "any action, directly or indirectly, to target youth."
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