What the doctor ordered

American authorities demand huge contributions from tobacco companies to combat smoking

The largest tobacco producers may soon face huge costs that could seriously undermine the tobacco industry. The reason for this may be another law of the American government aimed at combating smoking. According to Reuters, the US Department of Justice sent a formal petition to federal judge Gladys Kessler asking that cigarette manufacturers establish a special fund into which they will be required to contribute $5.2 billion annually for 25 years.

One of the authors of this program was an ardent anti-smoking activist, the famous American doctor Michael Fiore, who heads the medical center for research on the harm of smoking at the University of Wisconsin. In a commentary on this bill, he stated that a long-term program is simply necessary to counsel and treat the 32.1 million of the 47 million American smokers who have reported in various surveys a desire to quit the habit. However, according to him, “many of them cannot do this.”

The American authorities have been waging a campaign against tobacco workers for more than a year (previously, lawsuits were filed mainly by those who demanded compensation for health damage). Last fall, government lawyers got the District of Columbia court to consider a $280 billion lawsuit against Philip Morris USA (now a division of Altria Group), Lorillard Tobacco (part of Loews Corporation), and Liggett Group (part of the Loews Corporation). at Vector Group Ltd), Reynolds American Inc. and British American Tobacco. Tobacco companies are accused of “misinforming” smokers for more than 50 years: advertising claimed that “light” cigarettes with a reduced nicotine and tar content were safer for health. The prosecution counters that tobacco companies promoted their unhealthy products to teenagers and also increased the nicotine content of cigarettes to speed up the onset of addiction among novice smokers. The end of this trial is scheduled for mid-June.

This lawsuit relies on one of America's main anti-mafia laws, aimed at "organizations prone to corruption and racketeering." In fact, the US government accuses the tobacco industry of creating a criminal organization, “colloquially referred to as a gang.” The use of this law makes it possible to “return profits obtained illegally into state income.” And if the prosecution proves a fraudulent conspiracy, then, if desired, it can lay claim to almost all the financial assets of the accused corporations.

Naturally, another attack by anti-tobacco activists did not go unnoticed by tobacco companies. They immediately tried to reason with the proactive doctor and his grandiose ambitions. Among the first critics of Mr. Fiore's program was Philip Morris USA. Its chief lawyer, Ted Wells, said that the proposed concept is replete with shortcomings and outright weaknesses. The very feasibility of the proposed program was called into question due to its obvious high cost and “unintelligibility.” Another argument from tobacco workers was the already existing, effectively operating centers for the rehabilitation of smokers, as well as the wide range of life insurance opportunities that provide compensation for the consequences of smoking and the possibility of further rehabilitation. “If Warren Buffett were a smoker and sought help from one of the centers working under this program, he would certainly be considered worthy of receiving free medical care and free consultations,” Mr. Wells said to Mr. Fiore, “ Are you asking Judge Kessler to force tobacco companies to pay for the consequences of smoking for people who can already get their compensation from private insurance companies?

However, experts believe that the decision on Mr. Fiore's program will depend on the outcome of the trial with tobacco corporations. If the government loses the $280 billion lawsuit, it will use every opportunity to fight smoking through huge royalties from cigarette manufacturers.

Denis UVAROV