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ASH Daily News
5 November 2002


HEADLINES
Canada loses tobacco appeal
Philip Morris to undergo ethical scrutiny
UK meets targets to reduce male cancer deaths
Product placement

FULL TEXT

Canada loses tobacco appeal

The U.S. Supreme Court has rejected Canada's appeal of a ruling that
dismissed its civil racketeering lawsuit accusing R.J. Reynolds Tobacco and
its affiliates of smuggling billions of cigarettes into Canada to avoid
paying taxes.

A U.S. appeals court dismissed the lawsuit, which alleged the defendants
tried to defraud Canada of tax revenue in the early 1990s by shipping
Canadian cigarette brands to the United States and then smuggling them back
to Canada.

Without any comment, the high court let stand the ruling that declares
Canada's case represented an impermissible effort to use U.S. courts to
collect foreign taxes. The high court acted after the U.S. Justice
Department said the appeals court had correctly ruled that a foreign
government cannot bring a civil racketeering claim when its alleged injury
involved lost tax revenue.


Canada's attorney general sued R.J Reynolds Tobacco, several currently and
formerly related companies and the Canadian Tobacco Manufacturers Council in
1999, accusing them of engaging in an elaborate smuggling scheme after
Canada sharply raised cigarette taxes.

A federal judge in New York City dismissed the lawsuit, ruling the so-called
common law revenue rule barred Canada from using American courts to enforce
foreign tax laws. The appeals court, by a 2-1 vote, agreed in its decision.

Canada appealed to the Supreme Court, arguing the ruling will significantly
undermine efforts to combat international smuggling.

Lawyers representing Canada said the case presented an important question
concerning the rights of foreign nations to bring claims arising under U.S.
laws.

Reuters, 4/11/02, Financial Times, 5/11/02
http://www.reuters.com/news_article.jhtml?type=businessnews&StoryID=1675296


Philip Morris to undergo ethical scrutiny

Philip Morris, once dubbed “America’s most reviled company” has set out to
improve its image. David Greenberg, a senior vice president, is writing
the company’s code of conduct for thousands of employees to try to make it
easier for whistle-blowers to report fraud. On the question of whether a
cigarette company can ever be ethical, Mr. Greenberg commented: “Making
cigarettes has always been and will continue to be debated as an ethical
issue.” But the court battles the company has fought in recent years
“certainly gives us perspective about what happens if and when you lose the
public trust.”

The Wall St. Journal notes that there are practical benefits for employers
to introduce ethical guidelines. For instance, companies convicted of
crimes are eligible for reduced sentences if they have previously set up
programmes to prevent and detect fraud.

Wall St. Journal (Europe), 5/11/02



UK meets targets to reduce male cancer deaths

Britain has been successful in bringing down male cancer deaths from the
third highest in Europe to the fifth lowest, a leading cancer expert will
tell a conference today. Professor Peter Boyle of the Milan-based European
Institute of Oncology, will report that Britain’s attempts to prevent and
cure cancer have been a success story – at least for males. Targets set in
1985 by the Europe Against Cancer programme included one to cut death rates
by 15% by 2000. It is thought that 90,000 deaths have been prevented by the
focus on tobacco control, screening, education and training but only Austria
and Finland have met the 15% reduction target for both men and women. The
UK and Luxembourg achieved the target for men and narrowly missed it for
women.

The Guardian, Daily Telegraph, 5/11/02



Product placement

In advance of the next James bond film which is expected to be full of the
usual gadgetry and near death escapes, the Mirror takes a look at the
opportunity this gives to advertisers to plug products ranging from watches
to champagne. The article examines other noteworthy examples including the
placement of Lucky Strike cigarettes in Beverley Hills Cop. Actor Eddie
Murphy promoted the brand and at one point held up a packet declaring:
“These cigarettes are very popular with the children.” For this the Mirror
give the film a plug rating of 4 out of 5.

The Mirror, 5/11/02




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Amanda Sandford
Research Manager
ASH
102 Clifton Street
LONDON
EC2A 4HW
Tel. 020 7739 5902
Fax.020 7613 0531
amanda.sandford@ash.org.uk