'Safe' Smokes Behind Philip Morris' Stance on Regulation? July 31, 2002
News Summary
For decades, Philip Morris has been a leading opponent of tobacco regulation. But the nation's largest cigarette maker has changed its position, saying it now supports a bill that would give the U.S. Food and Drug Administration (FDA) the authority to regulate tobacco, Slate reported July 25."Philip Morris believes in soup-to-nuts regulation of the entire industry, and we think that the FDA should be involved in all of that," said chief legislative counsel Mark Berlind.
Philip Morris also supports federal oversight of cigarette ingredients, warning labels, manufacturing, and marketing.
The company's views differ from those of the rest of the tobacco industry. "It's as fractured as the industry has been on an issue," said Robert Campagnino, senior tobacco analyst for Prudential Securities.
A lobbyist for one of the cigarette makers opposing FDA regulation said, "By endorsing even limited regulation, Philip Morris is opening a Pandora's box."
Other industry analysts say Philip Morris is supporting FDA regulation because it is counting on the agency's approval for a line of "safe" cigarettes it is currently developing and banking on for future profits.
"The way they calculate it is they are going to lock in their market share so they can go to the investors and say, 'Look, we're practically a utility. We can guarantee this revenue stream. There aren't any risks out there from government, we've solved them all,'" said James Derderian, who was chief of staff to U.S. House of Representatives Commerce Committee during the late 1990s tobacco wars.
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