o "a resulting from this order were designed to keep teenagers from smoking.66 However, the tobacco industry immediately appealed the order. While continuing to fight its legal battle with the federal government over the FDA regulations, the tobacco makers did agree to settle lawsuits brought by 46 states against the industry in late 1998 by signing the Master Settlement Agreement. This settlement was considered a better deal for the tobacco industry, as many of the onerous cigarette marketing restrictions contained in the original FDA proposal settlement were missing. The agreement allows large outdoor signs at retailers, whereas the original proposal banned all outdoor ads. The original deal banned all use of humans and cartoons in ads, while the current settlement bans only cartoons and even permits their use on cigarette packs. And while the original proposal eliminated sports sponsorships, the current agreement allows each company to continue one national sponsorship.6
An important provision of the Master Settlement Agreement was that the tobacco companies agreed not to target youth (those under the age of 18) in the advertising, promotion, and marketing of tobacco products either directly or indirectly. However, over the past several years there has been considerable debate over whether tobacco companies are complying with the agreement. Much of this debate centers on what is called the 15 percent rule, under which the tobacco companies voluntarily pledged not to advertise in magazines that have more than 15 percent of their readers under the age of 18. Some major tobacco companies such as Philip Morris have stopped advertising in magazines that have a substantial number of youth readers, such as People, Sports Illustrated, Spin, and Rolling Stone. However, other tobacco companies still advertise in these publications, and it appears that there are still a number of battles to fight in the war over the marketing and advertising of cigarettes.68
A number of consumer advocacy groups as well as health departments in many states run ads warning consumers against the dangers of smoking and tobacco-related diseases. For example, the American Legacy Foundation, which was established as part of the 1998 tobacco settlement and is dedicated to reducing tobacco use, has run a number of hard-hitting ads warning consumers of the risk of smoking (Exhibit 21-12).
Another area where the Food and Drug Administration is being asked to become more involved is the advertising of prescription drugs. IMC Perspective 21-3 discusses the tremendous growth in direct-to-consumer drug advertising that has occurred sine the FDA issued new guidelines making it easier for pharmaceutical companies to advertise prescription drugs to consumers.
The U.S. Postal Service Many marketers use the U.S. mail to deliver advertising and promotional messages. The U.S. Postal Service has control over advertising
Exhibit 21-12 The
American Legacy Foundation was established as part of the Tobacco Settlement Agreement and is dedicated to reducing tobacco use in the United States
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Co-op Mailing means that two or more businesses share in the cost and distribution of a direct mail campaign. It's kind of like having you and another non-competing business split the cost of printing, assembling and mailing an advertising flyer to a shared same market base.