US
cigarette makers stopped from misleading descriptions
While the tobacco industry in the US is relieved that
it would not have to spend billions of dollars on campaigns
to stop people smoking cigarette makers will have to stop
describing their products as "low tar," "light,"
"ultra light" or "mild," according
to the decision of a long-running legal battle with the
US Government.
US
District Judge Gladys Kessler, said she could not force
the tobacco makers to pay for $14 billion (£7.4
billion) of anti-smoking remedies because of an appeal
ruling in a separate case that limited their financial
liabilities. However, tobacco companies like Philip Morris
USA, RJ Reynolds Tobacco Company and British American
Tobacco, will have to change their labels, put all the
documents used in the seven-year case on their websites
until 2016 and take out television and full-page newspaper
advertisements to explain the changes.
Judge
Kessler said she found that the companies deliberately
set out to "increase and perpetuate addiction. She
said the big tobacco companies had systematically tried
to hide the true effects of smoking from consumers, particularly
through the marketing of so-called "light" cigarettes
so as to discourage smokers from quitting. She said they
suppressed research, destroyed documents and manipulated
the use of nicotine so as to increase and perpetuate addiction.
The
companies pursued profits "with little, if any, regard
for individual illness and suffering, soaring health costs,
or the integrity of the legal system," Judge Kessler
said.
The
ruling was the culmination of a civil case brought by
the Department of Justice in 1999 after massive settlements
made by the American tobacco industry to individual states
in the 1990s. The cigarette firms paid about $246 billion
(£130 billion) in compensation for deceiving customers
about the harmful effects of smoking. The Government had
prosecuted the companies under the Rico Act, anti-racketeering
legislation introduced in the 1970s to extract large financial
penalties from gangsters.
Officials
at the Department of Justice had originally advised that
the tobacco industry should pay $130 billion (£69
billion) to fund a national campaign to reduce the size
of America's smoking population. Prosecutors had also
wanted the court to impose fines on big cigarette companies
if youth smoking rates failed to fall.
However, Judge Kessler ruled that she was bound by a February
2005 ruling of the US Court of Appeals that decided that
the Government could not force the tobacco industry to
pay any more for its bad behaviour in the past. Instead,
the companies will just have to pick up the Government's
estimated legal bill of around $140 million (£74
million).
In
late afternoon trading, shares in Altria, the parent company
of Philip Morris, gained over 3 percent, Reynolds rose
over 2 percent, while Carolina Group, the owners of Lorillard
Tobacco, another of the defendants, was up over 1 percent.
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Ryanair
threatens to sue British Gov't
London: UK Budget airline Ryanair Holdings Plc
has threatened to take legal action against the British
government unless it meets its demands for relaxing airport
security and improving staffing at overstretched airports
within the next seven days.
Ryanair
which cancelled many flights and registered a 10 percent
drop in weekly bookings because of the terror alert that
raised security levels on Aug. 10 wants the government
to return passenger search requirements to pre-alert levels.
It also wants the government to restore the hand luggage
allowance for passengers leaving British airports and
an assurance that military and police personnel would
be released to help with airport security checks next
time there is a major security alert. Ryanair said the
alert had so far cost the carrier "a couple of million"
euros in canceled flights and lost bookings. The government
initially banned all hand luggage on flights out of Britain
after it announced on Aug. 10 that it had thwarted a plan
to blow up as many as 10 trans-Atlantic flights. It has
since eased that ban, but some restrictions remain.
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