Cigarette makers lose appeal in landmark case

Cigarette makers lose appeal in landmark case

WASHINGTON – A federal appeals court on Friday agreed with the major elements of a 2006 landmark ruling that found the nation’s top tobacco companies guilty of racketeering and fraud for deceiving the public about the dangers of smoking.

The U.S. Court of Appeals in Washington upheld requirements that manufacturers change the way they market cigarettes. The requirements, which have been on hold pending appeal, would ban labels such as “low tar,” “light,” “ultra light” or “mild,” since such cigarettes have been found to be no safer than others because of how people smoke them.

It also says the companies must publish “corrective statements” in newspapers and on their Web sites on the adverse health effects and addictiveness of smoking and nicotine.

Throughout the 10 years the case has been litigated, tobacco companies have denied committing fraud in the past and said changes in how cigarettes are sold now make it impossible for them to act fraudulently in the future. The companies have argued the ban on labels like “light” would cost them hundreds of millions of dollars.

Philip Morris USA and its parent company, Altria Group Inc., said they will appeal to the Supreme Court.

via Cigarette makers lose appeal in landmark case – Yahoo! News.