/ 22 September 2004

Tobacco giants admit selling ‘dangerous product’

The United States tobacco industry on Wednesday fired its first shots in a bid to undermine a government claim for $280-billion to punish firms it accuses of plotting to cover up the harm of smoking.

On the second day of the tobacco trial in Washington, lawyers for the major industry firms said the companies no longer seek to hide the fact that cigarettes are ”a dangerous product”, but they stressed that the industry must be judged on its behaviour now.

Ted Wells, co-counsel for Philip Morris USA, led the defence argument by saying: ”As of today, each and every defendant says to the public in a clear and unambiguous way that smoking is dangerous and causes disease.

”There is no such thing as a safe cigarette, be it labeled ‘low tar’ or ‘lights’. We sell a dangerous product.”

In the largest-to-date US civil racketeering case, the government accuses tobacco companies of colluding for five decades to hide the health hazards of smoking, marketing directly to teenagers and lying by suggesting the relative safety of ”light” cigarettes.

Defendants include Philip Morris USA, which controls about half of the US tobacco market; RJ Reynolds Tobacco; Loews Corporation’s Lorillard Tobacco; Brown and Williamson, which is part of British American Tobacco PLC; and the Vector Group’s Liggett Group.

All are being sued under the Racketeer Influenced and Corrupt Organisations (Rico) Act, which was passed to prevent Mafia infiltration of business.

The tobacco industry reached a $206-billion accord with several US states in 1998. And Wells said that the industry has changed so much since then that it is ”inappropriate to use the past” to make a judgement on its behaviour now or in the future.

”There has been such a profound change in the way tobacco companies communicate with the public about the risks of smoking that there is no likelihood of future Rico violations,” Wells told the court.

Wells argued that the government argument about fraud depends on the idea that tobacco companies are hiding facts from the public now, which he said is no longer true.

”Most of the government’s allegations … are basically dated and stale, because something good has happened” since 1998.

”It is good that the defendants admit that smoking is dangerous and that the defendants admit that nicotine is addictive,” said Wells.

The counsel said the companies will produce evidence to show there was no ”fraudulent activity with respect to youth marketing”.

He did not concede there was a past plot.

Wells said some of the tobacco companies’ conduct ”was wrong-headed, it was mistaken”, but he insisted there was no ”Rico conspiracy”. — Sapa-AFP

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