Philip Morris Will Drop Ads in Magazines Read by Youths

Bowing to legal pressure, tobacco giant Philip Morris Cos. said it will pull advertising from about 40 magazines with large youth readership, including such major showcases for its brands as Rolling Stone and Sports Illustrated.

The move by the top U.S. cigarette maker is intended to blunt fallout from a probe by state attorneys general who are investigating whether tobacco firms have violated a 1998 settlement agreement by pitching their brands to youths. The companies agreed in the $246-billion settlement to eliminate tobacco billboards, but have since significantly stepped up their print advertising.

Michael Szymanczyk, president of Philip Morris USA, said in a letter to Washington Atty. Gen. Christine Gregoire, a leader of the states, that the firm will no longer advertise in any publication with a readership that is at least 15% younger than 18, the legal age to smoke, or that has more than 2 million readers younger than 18.

The move was applauded by Gregoire and by Matt Myers, head of the National Center for Tobacco-Free Kids, who said it appeared to be a “positive step forward that other companies should follow.”

But Philip Morris dominates the industry with a 51% market share, and any general reductions in advertising will tend to lock in its commanding position. No. 2 tobacco company R.J. Reynolds Tobacco Co., which in recent years has slipped ever further behind Philip Morris, quickly announced that it will not follow the bigger firm’s lead.

In a prepared statement, RJR said reductions in cigarette advertising will not affect youth smoking, “but will absolutely have enormous impact on our ability to communicate with and compete for adult smokers.”

The firm, which has ceased advertising in certain youth-oriented publications, said the settlement agreement permits advertising as long it does not “directly or indirectly target youth.”

Announcement of the probe by the attorneys general came at a particularly bad time for the industry, which is battling to avert a potentially crushing punitive-damages award in the landmark Engle class-action case in Florida.

In the trial’s punitive-damages phase, which began last month, the companies are trying to convince jurors that they have reformed their marketing practices, and that therefore punitive damages are not warranted. Szymanczyk is expected to testify in the case within the next few days, and may be questioned about the attorneys general probe.

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Times wire services were used in this report.