Citing FTC Rules, Ill. Court Reverses 'Light' Cigarette Case December 15, 2005
News Summary
Saying that the Federal Trade Commission (FTC) allowed cigarette companies to use terms like 'light' and 'low-tar' to market their products, the Illinois Supreme Court tossed out a $10-billion class-action verdict that the industry had defrauded consumers, the Associated Press reported Dec. 15.The high court reversed a Madison County court's decision against Philip Morris USA, telling the lower court to dismiss the matter. The county court had ruled that the company misled consumers into thinking they were buying a less-harmful product, and ordered Philip Morris to pay $5 million in compensatory damages, $3 billion in punitive damages, and $2.1 billion in interest to the class of 1.1 million Illinois smokers.
Two of the seven justices on the state Supreme Court issued written dissents on the decision. Shares in Altria, the parent company of Philip Morris, rose on news of the decision.
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