Constitutional Law

Supreme Court Sides With Smokers' Legal Action Against Tobacco Co.

The U.S. Supreme Court ruled 5-4 in Altria Group, Inc. v. Good that federal law does not block smokers from suing tobacco companies over the company’s promotion of “low tar” and “light” cigarettes. The smokers, from Maine, had contended that Philip Morris USA and its parent company, Altria Group, fraudulently advertised “light” and “low tar” cigarettes as far healthier than their other brands, knowing that they weren’t. Altria defended its advertising and argued that the smokers’ lawsuit was preempted by the Federal Cigarette Labeling and Advertising Act (the Labeling Act).

Altria pointed to preemption provisions in the Labeling Act, especially the one stating no state shall enforce a regulation barring cigarette advertising that is “in conformity with the provisions of this chapter.” The smokers argued that through the Labeling Act, Congress did not intend to prevent states from enforcing fraudulent advertising laws. The majority opinion by Justice John Paul Stevens agreed that the Labeling Act does not bar lawsuits against Altria for deceptive advertising in violation of state laws. Altria also argued that the smokers’ lawsuit could not proceed because it would undercut policy by the Federal Trade Commission, which for years has promoted so-called law tar and light cigarettes.

We conclude … that the Labeling Act does not pre-empt state-law claims like respondents’ that are predicated on the duty not to deceive,” Justice John Paul Stevens wrote for the majority. “We also hold that the FTC’s various decisions with respect to statements of tar and nicotine content do not impliedly pre-empt respondents claim. Respondents still must prove that petitioners use of ‘lights’ and ‘lowered tar’ descriptors in fact violated the state deceptive practices statute, but neither the Labeling Act’s pre-emption provision nor the FTC’s actions in this field prevent a jury from considering that claim.” Justices Anthony Kennedy, David Souter, Ruth Bader Ginsburg and Stephen Breyer joined the majority. Justice Clarence Thomas filed a dissenting opinion joined by Chief Justice John Roberts and Justices Antonin Scalia and Samuel Alito. The court’s opinion in Altria is available here.

Recently Allison Zieve, staff attorney at Public Citizen, examined the preemption cases before the high court, including Altria, for an ACS guest Blog post. Her analysis is available here.

Full post as published by ACS Blog on December 15, 2008 (boomark / email).