~t;··~;~ JncqueL~ Smi~~ 8 Dlc~s 1~ JUBJE~ A~~ ~1 ~~d_dLNonum~~. bl~rffid ~f Cbc~ PnmoloP ga ~iti~cion I n~ r ~ $a ~g b ~I, dn ~ Rb~p~la ~ m ~~blish~ ~ ~ Scr~i~vianLid 3~ ~d~dici~ alnna RI ~ 1 dOlntS ~~i~nly p~~n, $~~ loddcvrlA, I~OYL MiSUSd 01 m~ J ~~I~ ~hoding ~~iwfrom ~n~ Rcb~ S,B, k~l~r Smi~hron PYe ~~ ~n~B I,, II aEc1993 me ce DrkAnL~ ~ G 91~~ ~1I~CL no~U ulSHI~ CXI~DCL Y~DLBI~ ~I)~L rI~rH0~t OEsH~w ~a~ ~~n frLI1 n~l~ ~~~ an~ ~n~ BATCo document for legal Senlce9 : Heath Clnada ~7 Yay 1994 _I~ _ ~F~R 85 '9t !6:53 P/M LF~T~N FIMEFr,BS. ?.3 f TOBRCCD AND hOVERTISTNG: wes TOBACCO ADYERTISTHC PRO~DE AdPI aBNEPITs! TobaccP advertising prfvidss a vital co~Pauniacims lin;e between tobacco manufacturers and adulL, cigarette smokers, Ldva~tising is the means Sy;rhi~h manular,urers eoj~lcata W!tb smokers abcuc the products Cay make, Advertising ensures that sJokers have rhs ability ;3 aaice an informed cio!ce about the p:a~cets they van~ to use. FdT czample, adve~-,ising provides smokers viQ isid~atlon about bvni!h4le brands and ?fil~::nces Deveea brands, end makes i: Possible ::or them tJ learn abost new producu, changes in Ixlstinq brands, or innovations like 1!IEered c!ga:a:te;. a ban OR cigarette advertising would censor t2is flow o:' information abac: a legal F:cd6ct, bdverrising also scrttes to stimulate ecngerl;ian a~n~ona manufacturers by providing incentives for researching and producing products to keep up with changes in consumer preferences. Smokers thus jeaafit frem hig~ guality and lower price as we;! as aare prod;ct choices and innovaticPs. Iteacon to advc.-,lse is eisantial ii the industry is to respond to 6hi:t4 in consumer tastes, auf,i as the aovenene it ncact years among many smokers to low "t~r"llricatine cig~rettc~. No manc~~cturar will :!sk investing in nev product development ii he dces r,ct have :he means to inform the public about it, Competition 3rPvlCes the incentive to product now or i3proveci P.rcldCcu: G BATCo document for legal Services : Health Canada 17 May 1999 "PR BS 'Jt 181~ P/n LATIN ~.~6, P,1 adv~r:frfag providas ~1 Ioanl to ~ar~~t ~al; conl~~rl Cori~~ the bsnaiits, Lavl tha ~ill~y tb I~c~!Js, and bo~b incar~i~aJ and h~n~i!rs di5tppear, -2- BATCo document fot legal Services : Health Canada 17 May 1999 ~R OS '92 18:~ Re ~r~ ~,~~, P,f mPC~ ~D MVERTTS~: wes ~GIIRGITE XDVERTIS~G CllUSE P~OPQ Tb STNET SHOKING7 IP )~, WKY ADveBTTOHt Tt 1J ~ita ~uqgclt~d t~at ciCrstta Idra~is~g capasa psap16, psrt!ePlarly young peop!s, to st~ smoking, slggcstion has hlan dlsputad by nanp rasaarehers, nssaa:~ !r, tSis area sdqgtsts that adv~~isi~g rat litfl~ i~ any !nllosPce on tbs dcc!aion to start smo)ting: rat hl~ , it !=dicatc~ that c3r!oa!ty and tha inilulaco oi :amily and ~riecda ars t?e ~cst ~iqn!l!cbnt inil=bnccs, l~art:ling lackl ~lpous: to laks p~opl,, ~c~cr ~ildrsn or adnlts, hay ptddac:s :hcy do not vent: tpbaeeo adverifsing is no di!!rrsnt. ne B~ose oi tobdCCO advor:!aing is to PSOPOt? brspd aua:enas~ and thus to 8RCOPrl9e brand lagalty or, altonat!valy, tr~nd rrit~iaq aoag a8~t sloksrs, aATCo document for Legal Services : Health Clnsdl 17 May 1911 _~C~ ~ BS '9~ 18:Y P/n LAilN AMR,i?Et, P,6 r~~ hM) IIDVEB~~SIL: Oa~ THE ~6~~ Iltonsm TllRGzr rod~rt at ~n ~tove~Tra~rl Phb tdhlCeO i~QSt~ dOLI not advertise and promota prpdpC=9 tp children, The i~~~ r~ard~ I~~P~g at ~ adult cuat3e, ~ SOPd~i~g ydl~h IhOuld 101 and aima itl a~c~!Jflg at adult epa)(ers, ~ at ch!ldrcc~ Thla it rsil6ctsd !~ the iaft that adv~~!~ePcPts use adult lodals and appear in ,nedia tarql:~d at adr:tJI BATCo document for Logal Senkls : Hedth Canada 17 May 1999 mFR 65 '921B;W P.ln !2TIE1 i~R.i~Ei~. P,7 Toahcco XNo MVERTTSU1G: W MVERTIST~NG Bk~S OR BEsTareTIOHS REnnCE TIIE tn~MB~R aF eeOPIi~, P~RTICCWBIY Q~~SWi, AhlO START S~O~ING! Tobacco product adve~t!sing lees not make people star: ne2!eg, 8a,z:icg tobacco product advertising would not make people stop s~ok~ng, Evidence that ~a~rming ciganrte advertising ra~~? not reduce ssokiq prevalence among ycu~; people has been provided again and again by the experience of ewnfries that hrua banned or severely restricted cigare~:e adlrer:~sir,g, confirmation is provided by recant survey reFa,rts from Norway and Fia;and, A:~o~gh :~bace~ product advertising has been banned in rin!anl since 1978, a ~ni~en!ty of Hclsinki survey reportedly e3sn4 tndei a hiahtr percentage of 1C- to Is-ycar-cldJ smoked dai:~ in Ises Z~b'i Yller,:~it ddYBT;iljp~ baJ: VPlt i1123 e~ieCt.l AEOdl~ study published in 1991 actually noted a s!igh~ ' .ncrease in SIDOJI~~g among adult men and woter, b~Bacn 1388 and 1990, The study alse noted t~a~ although ~Mx!~g y\on? young people had actually started to iall in 1476, t'Jo years before the 5an want into ellect,'t~eir · cPnsuPpri3n of tatdaa products and smejcing once again began to rise in the mid-;980;, The researchers conducing the study concluded that 03 the basis of :~ese data, smoking in Finland does nPt appear b be decrersic~ at this :imc,2 BATCo document for Legal Services : Health Canada 17 May 1999 ~_ lnkl 33 143 19:55 P/M L~TIN FGIE~.iiES. m No~ay, where tobacco advertising was janned in 1973, a:ace~t rt3dy rapor:ed that the total incidence oi daily sn6kir,g a3964 ]~OrtBgi~l adu::s ;esina~ virtually unc~angod ~at~een 1919 jyten 33 percent nPked) anC 5989 (xir,en 36 percent szoked), in assessing the i3pact of the ban, t~s ac~ors coneludec -,lar: "Elren Z~ugh ~Se law to scop tobacco advertising has a =aacingful content, we cannot see that It has had a iunda~ee:l! eliecr, upon the sale or use of f0Sacc3,"3 RBE~NCES 4llpe!a, A., Simpe!a, #., Hara·Etalahar!u, 13., ~kari, ?., S~ivo!a, W., acd:ta,wonen, S,, Ya9ns.P~aelezl ~~?119 ~13- Isas, ee?sini~~: nci?ersit~y of Hrlsin)ti, Deea~3ec: ct' Public Health Science, Publication 2/1989, 1989. 2, Paavolh, M,, Tilckanse, 5~, Hslon~a, I,, and Kos~a!a, "gesedrcs on It=it~des ~~v~rd S8oking in rin!ar.~," St~ l~njiarl!~hr~ 46(8): 7214721, 1991, 3. Edt.esrarz, K,o. and Gdt#raa,:i,G,, "f(oyking pg BSdnlnger i Nor4e (Ssoking and Attitudes TPwards SmoK1ng i3 #onay)," fl!s~kr_uo~ I~iarPn.i:P~nl, of the; krw_e~m MoCie~! bJbciaticn) ;lo(n): ;1160·1, !190. ~ar ~ subsl~en~ c3lterpondanca wi3 2:, ajartveit in tt~e sere journal: 1990, 110(18), 2395-7; 1390, 1561; 1990, 110(20), 2683-90 (ineluCl~g cha~). ·2- BATCa document for Legal Services : Health Canada 17 May 1999 -I _·_~_·--I .-~·~--I·· --C~ ·I-s·_..~ MAR 65 '92 18l5S P/M 1FITIk AMER.til;. P,~ TOBACCO ~HO AD~RTSsMG: DID mE NEW ZgAtAblD TOXfC Sf~BSTANCZS BOARD ~E~OBT BSflBZISB ~AT B~Q~NG TOBA~CO P80WeT ADvEaTlsINC upms m~otla slrc~rs~ic? Anri·smokfng atvocatra have cited Ehe 1989 report 4:' t~e hxie Substances Board [:SBi oi ?few Zealand to t~e effect that d~~s ~ran ?a countrias groved ~at banning tnbacca ?r:dcc~ n~vart.sisq uould. reduce srmoking, HPvevPr, that conclusion aeptcbe~ an :he iaisclasslficaiic:, or' certain cl;n;:la~ 3ec!lni:,g s30kinF rar,aS as c=unr:ias !h which t~era vere total a~vertis!~g 5an4 When t~a: was not ~~e Situation and other ~Sf~166 Ila:~odo!39iC~: rlavs, :he evidentiary value o~ the TS3.Selarr was eevPre!y discbur~ted by the Quable Superior Coux::n the :eco3t Canadian advc~~sing ban decision: "IT]he Cbllrt can only note thbt [tns TS3 Repo.rt] c:ntaina Je~~ous meEodaSog!cbi ~r~ols ant a lack 02 scie~~if!e rigor which renders it for al! intents and pu:aose~ deopiil o0 any psobarive value. Zt is a :epo:t oir~ an obvious Folnt di view and !:s conclu~ics ceele: ~a: lein~ of VieV,nl EEE~EIIENcEs 1~ RJa·~~c~cna~.lnc. ~r. Attcr~v~nar~, 82 C,L,~. (Gt.4.l 4:9, 5a3-04 (199t), BA~Co document for Legal Services : Health Canada 17 May 1999 ~ MPA BS '3t la:a P/M LE~IIN ~3,Rt, P.:8 MBIICCO ANn MVER~TSWt: KAS TIIE I~Fl~n~n~U~e~TATId bP CIGBB~I~PI~ bDOD~TI~MG B~N9 ~ HEW 2~BfJLND ~tD CAN~I~ I(ES~T~D I# DEC~RIES ~N CTGIIIfTE CON6I~IP~IOH~ Contentions have been made t~at declines in cigarette cpnsurn~tic= in Canada and New Zealand iollovilg the adoption pf ~~va~c!sing bans i;! those cacntr!es prove t~at bbnning advertising wi!!:ead to reductions in cigarette consunptioo, IIPwever, a more datsiled Jna?~r!h or soc!P! and legislative developments rhlcr. ~far:ed in ~ose countries at about BaiDe =bB 18 the adve~tising bans ~era imple~cnt~d suggest that such contaneior,j :gnore n~erous p~py factors that may have In:~uenced obser~ad csns~ption trends, For exuple, such eonter.tions do not take into acc~~r.~ the potesl~n! i~pPc: of retail price increases brought abot:: for t:c r;os: par, by substantial tax hikes in both countries, Tn Canada, ·=as icp!~~o~kt!on of the Tobacco Products control Lt on January i, !989, vas said to be respansibla for the six perce:,t drop in cigarette consumption recorded at the end of ~a: yea:-- tile !1I9;st annual decrasse ever reccrdo2, Lwevsr, taxes on d :s~ol al ci~arattes at tSe ~cdcral level hoarllr t:ipled dc:ir.g ~t~ie tbe ~LI!OC; prPvineial taxes also incraa~ed, Specltlcally, :adsral taxes reportedly increased irom uSS;.sr a carton in 3988 to ~oet USS?O i:, late 199!: in Ontario, p:ovinc!al taxes on a carton of clga=~ttes rose iron USSj,66 in Isel to L~S13 in 199!, !diaps !neviraj!y, crass-b6rder sboFplr.g and s~uggl!ng betslcln lit BATCo document for Legal Services : Health Canada 17 May 1999 rmR ~ '5! le:a p/n LR:IN ~,~. P,I! canads and the United 9taeal also ineraarad t~st~tfally, The pravi~ce of Pu~ac ~11 spae~arah that its ~oar~~ alone is losing an Ca:!Db;ld jfs I!!:!OP JC~ld!lR) a year 2reP snuggling, inpaot of these d~~l!ep~r~ on cons~ption figures, Ir well as 1 ~wit:h to ro!i·y9ur-evs cigaret:os, is di~!!~2t tp dar~nfn~ bur is 11161y to he s~stanti~i~ I!ksvisc, in New tsiland, lJhsre nha toblcco advertising and spon~o:ship bla:l~k bflact in lay 19JO, it has bean clsi=~d than ~e ban vaa responsible for a 10 pc:ce~t drop in eiqarstte oonsunption, Bdrl again, ~OVlllr, BXf!ll taxes wore !~crialcd In the lattar part o~ !990 and again in aprfl 1591, leading :3 lign!iicabt retail pries inc:~~ol~, Thero vort additional factorJ t~t Ily have Ili~c:ad tohaeco oonsuIllption iipH, ineluding ~ovorr~at rsduct!ono in EL;Y IOC!dl valiare 'aenefjts eat inpdetcd on ?irposablP ineope and :he intrpduc4ion o: severe no~irg rcat:~etionb uhit becuo ~a~daro? an all eng!oyero i: Fehr:ary 1991, ·2· BATCo document for Legal Services : Health Canada 17 May 1999 ~ 85 '~ 18:L ~/n ~r~H ~,~t, P,12 ~~~ LlP MVEfZTII~~; ARe ToPAccc MPZOICTP~ Bl~iS ~~ltl~ obl ~ ~I~ 01 ~CEBNI ~00~ PKING ~ ~IZILLTI~ Three' years ago the canadian government imposed a ban an tobacco adveroising under the Tobacco BzPdaets control bC;r l~alf:4 it "haa;th r,oweyar, the Pueboc Superior court ee~~~cd that law in 104!, r~l!pg "chat the ad bdn violated the Canadian charter of Rights and Br~~dcll, which guarantees tscLdos ai speech. Tr cpart io~J ~Dbt all I~~rt:si0g, ~cladiaq tobacco advs~!s%g, has expressivo content and is, ~b~rof9rc, a protactld The eo~~ also Ippd that ~I TOblCEO Products control Act fnp!nqed on the jarisdict!on of provincial govrar~ntl to rlgPll:2 advertising; The Court rejected the C~d:an gorc~ant'~ a~xtct that 1 ban on tobacco advertising would dlecct consuF,pclon, court ~tlto~ ~at ~a gevlmtnt could not spbltant!ata Its c!ails with any coPpsl;irq evidence of a link 5etween Idee~iling and adults srar',ing to smoke, between advarti5ing and adults who s=sF ~abti:g, b~tvPon I~Cr:il!fq Ind ~ildzan ~f~rting to sloke or between advertising 5415 and 6 dsersase in smoking, BATCo document for Legal Senices : Health Canada 17 Hay 1999 rCIR 05 '9il le:n p~ L9trN F~,RE;I, P,13 ~he~e r;i~d~r,gs aCd t? ~e growing number oz' puj:ishcd raports sbving there is no convfnc~ng avidknca that advartisir~s af.eeetJ ceneullp~tsn. h: BATCo document for Legal Services : Health Canada 17 May 1999 I~R 35 '92 1815i P/M LRT;N ~,REG, P,1J TQBbCEO AND MVEBIPIS~NG: W ~EIW~LTIPN~L T3aACoo ~i~UThC1PRFI~S ADVERTISE THEIR aRoD~CTS ~T~P~F~BPr~TLY'IH DEV~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~V~VPXNG edUNTRIES? AsserPions are ~requentlH aade clat in~ernational clgare;re mdnulactu:ars use advertising md 3arXsting ttclni~ues in davelpring countries ~a: wuld be considered ~napprcgria~e in their ooPe countries, Such claims apparmr!~ aesu~e that Ye :ovtrraenes oi develo~in~ countries are u3ahle or unwilling to ngc!bte the hwi~ess·pracricas o~ na=i3nal and !t:eslationa: cckpaniea dgernt!F.q· vitl~in their borders, The tobacco ind~st.rl has not round t~is t3 be ~18 case, local and national o~licialj are q~lte capable o~ ~etanining apF:3priata regulatory Star,darda in relation to the local culture, Fu~chenore, it is tho policy a." tobacco companies to comply with any local laws and regulations and any voluntarj codes legula::ng the advertising and p:P~E!onal practices ol businesses, Ea p~r;3se al ciqaret,:t advertising is ~F,e same arond ti~e world ·- to encourage brand !olJalty among existing smokers and, altesnativt!y, to foster bland suitcSing, Advcs*.ioinq does not Ildj~e people snake . li~irations on advertising, even developing countrfes, have not jeer, shown to have a sign~:ican; Jlrecr an eonwnpt!en~ BATCo document for legal Services : Health Canada 17 May 1999 ~ a5 '92 18:58 P/M UTI~ ~.~, P,15 CPn~Ps~r cvcryuhsrs in t5o vorld h~ve 1 rlgbt to recs!ve !ni3nltion in ord~r to PlkL an itionod cboicl, ~dvs~iJtng is ~slsntill ii s1Ptlrs ars to II~ dbaut n~ brand~ ed pra~t aod!iicltioas aucb as ohanqos in "tdr" IcPsle, ·2- BATCo document for Legal Services : Health Canada 17 May 1999 TP1222 BCRRD OF DIIIECIORS' SPPIARY aTROPF~N AFFAIRS CDI1RDIE~LTIEI; COICIITIZE S1P(MWIY OFACIIVlTIFS SEPI~IB~- E·3~3~QW38ER 1991 i. AWEI~SP~G Out activity ~s concentrated on galvanising support in the Council Working Group, Coreper and the Caficil of Ministers to ensure that the blocking minority remains firn. Ihe Creek delegation have now joined the blocking minority in CaPlcil, a posltirm ccplfirmed at the 11 November Co~cil of Healt~ Ministers, ~a substantive discussion took place in Council on the P~ertising Directive as the European Parliament ~d still to give an opinion, Cwncil will re9n discussions on 4 ~y t~nen t~e Portuguese Presidency are expected to give the directive a high priority, In addition to strengthening the blocking minority in Council, PUT tactics in Parliament are to affect a ct~nqe in the legal basis of the Directive fram Article 100A to kticle 235. Parliament is due to deliver an opinion in December but this :in~table could be delayed if we ate successful in getting the legal basis of the Directive referred to Parliament's legal Affairs Co~ittee. Our activities an the advertising front ~ve been assisted by the lac'~ press campaign, the European Publishers Cmn~cil's press ca~m~aign and favourable editorial coverage in the lead up to the ~aastrid~t sm~it. .1, SWNSOASHIP We have cc~tinued to cnrk closely with the fSS khd ~ve proved to be a useful point of contact for the activities of the Dlropean Parliament's Inter-Group on Sport, BATCo document for Legal Services : Health Canada 17 May 1999 ~r~re ~ve been ro new develo~ents within that Group since August and the membership of the Inter~troup re~ins predomi~nt~y anti-drink and tobacco. Ihere is every indication that the ~uestion of tobacco sponsorship will come up within the Group next month and this will prove to be a good test of our ability to influence the workings of this pressure group. Tne ISS's links with Di~ec~rate General X of the Ca~mission (responsible for c~mmicatian and culture) continue to develop. 3. fABELIING DTflECT~VE Activity on the preposed second Labelling Directive has been intense over the last few n~nh, Our lobby has been directed primarily at Coceper and at t~ Secretary of State for Lalth. ktiviCy concentrated firstly on the 19 warning which was to cover the total surface area of tobacco packages; the r~irement for an additional warning on nasal snuff; an extension of a time scale for in~lementation of the proposals acid finally, the deletion of ~exe 2 containing the ~alth warnings. Despite a well cMlrdifated campaign with our German colleagues we failed to get sufficient support fr~n the Govetilment including the Danish and rXlt~n Gwer~nents. A crinmvln position was reached by the Cola~cil of Bealth ~inisters on II November and the Directive is Expected to extend the i~e~nentatirm for labelling reguirements by 1 year. Pii~ adoption of the Directive is dw to tdke place ~Plder the Portuguese Presidency on 4 May. BATCa document for legal Services : Health Canada 1'I May 1999 ~d~c~:~ ~ore on Eonvenadan with Paul Bi?o.ham, 3,1,91 MARI~T~TI~C; QECIGARETTES I~ COl~r~RIES WITH TOTAL BI1BAf~S PB made these comments in response to a request from John Ticthursf for use in an interview with a trade magazine, They could however be of use .as a general response to the question: 'How do you sell dgarettes in a country where no advertising is permitted?'. The marketing of all hacg products has four basic elements · Product Place, Price and Promodoa Uyou remove any one of these, the other three become more si~ificya So in a market where no Promo~dn of dgarenes is allowed, you could expect to see the following: Product - innova~on becomes the key, A truly'new' cigarette which offers the consumer something different leg Barclay) ~nn r31 be introduced successfully in a market where promotion is banned · as Barclay war; in Finland, Also expect to see different pack sizes and shapes · witb no advertis~g alloweq the pack itself must create and mamtam brand image. Place · more e~dent use of the trade, and in·store communieab~on, ie permanent merchandising material and point of sale temporary material leg stickers). The aimis to create a better impact · to let the retail environment communicate the values of the product mote effectively, More efficient use of the company's sales force. Price - In some coun~cs (ep France) prices are Gred by law. In all coun~es with ad bans however, you can expect to see more price competition coming in · more low·price brands entering the market in the longer term. Finally, note that although advertising was restricted in Finland since 1969 and banned since 1978, there is as yet no indication that the brand images of the major international brands have weakened · something we might have expected to see. Sales in finland have been stable for the last five years and smoking incidence is on the increase · up by over 3% in the past four years to 28.1%. This is far higher than say, Holland (12,8%) where much fewer rcs~c~ons are in place, If tbe Finnish ban is working, why is smoking incidence rising after 12 years of no advertisingl Gaye Pedlow AGP/ATW Qth January 1991 ~T~i7~ hfn rL~ ACI~N~Ct~l j; BATCo document for legal Services : Health Canada 11 May 1999