Five States Sue R.J. Reynolds over NASCAR Ads

Five States Sue R.J. Reynolds Over NASCAR Advertising

Claim violations of 1998 settlement agreement

New York, March 20, 2001 -- The states of Arizona, California, New York, Ohio, and Washington allege that R.J. Reynolds tobacco company (RJR) has violated portions of the 1998 National Tobacco Settlement (NTS). The NTS, signed by the major tobacco companies and the states, included provisions about stock car ads that specified the ads could be posted only within a 100-day time frame surrounding a race. In addition to the NASCAR advertising issue, several of the states have complaints related to advertising targeted at minors.

According to the Seattle Times, four of the states (Arizona, California, New York, and Washington) are requesting that RJR remove its ads from NASCAR racetracks after races are completed instead of leaving them up at the tracks. The Washington Attorney General Christine Gregoire filed a lawsuit March 19 against RJR in Seattle. This suit claims the advertisements at Seattle International Raceway in Kent and Evergreen Speedway in Monroe violate the NTS, "which dictates that tobacco companies can put up outdoor advertising 90 days before and 10 days after a sponsored motor-sports event." The Arizona Attorney General filed a lawsuit in Maricopa County. California Attorney General Bill Lockyear filed two lawsuits for ads targeting children and billboards. The NTS states that RJR may not take "any action, directly or indirectly, to target youth...in the advertising, promotion or marketing of tobacco." RJR ads appeared in Hot Rod magazine and Sports Illustrated, whose youth readership is over 15% of total readership, according to the Los Angeles Times.

RJR contends that is signs comply with the NTS because the ads are intended to promote the racing series rather than individual events. RJR CEO Andrew Schindler said "the signs advertise the entire racing season, which begins in February and ends in late November." An RJR spokeswoman said "We believe it relates to the entire racing series, not to one specific event in the series, according to CNNSI.com.

Prior to the filing of these lawsuits, a 30-day notice signed by 19 states was sent to Reynolds. The states are asking that the courts come up with a punishment in addition to the removal of the racetrack ads and discontinuation of ads in magazines with large youth readerships.

Amy Armond