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1
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DECISION & ORDER
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EXTRACTED KEY WORDS
WARNING STATEMENT FEDERAL TRADE COMMISSION CIGAR ADVERTISING PACKAGE ADVERTISEMENT UNITED STATES DISPLAY CONSUMER ACT SQUARE INCHES SURFACE AREA LABEL COMPLAINT BRAND JURISDICTIONAL FACTS DISTRIBUTION TOTAL AREA AGREEMENT DIMENSIONS DULY AUTHORIZED OFFICERS PRACTICES THEREAFTER UTILITARIAN ITEMS MATERIALS PRINCIPAL DISPLAY PANEL DISSEMINATION RECTANGULAR SQUARE FEET |
002 3203
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
COMMISSIONERS:
Robert Pitofsky, Chairman
Sheila F. Anthony
Mozelle W. Thompson
Orson Swindle
Thomas B. Leary
In the Matter of
LANE LIMITED, a corporation.
Docket No. C-3969
DECISION AND ORDER
IT IS HEREBY AGREED by and between, by its duly authorized officers,
and counsel for the Federal Trade Commission that:
The Federal Trade Commission having initiated an investigation of
certain acts and practices of the respondent named in the caption
hereof, and the respondent having been furnished thereafter with a
copy of a draft of complaint that the Bureau of Consumer Protection
proposed to present to the Commission for its consideration and which,
if issued by the Commission, would charge respondent with violation of
the Federal Trade Commission Act; and
The respondent, its attorney, and counsel for the Commission having
thereafter executed an agreement containing a consent order, an
admission by the respondent of all the jurisdictional facts set forth
in the aforesaid draft of complaint, a statement that the signing of
said agreement is for settlement purposes only and does not constitute
an admission by respondent that the law has been violated as alleged
in such complaint, or that the facts as alleged in such complaint,
other than jurisdictional facts, are true and waivers and other
provisions as required by the Commission's Rules; and
The Commission having thereafter considered the matter and having
determined that it had reason to believe that the respondent has
violated the said Act, and that a complaint should issue stating its
charges in that respect, and having thereupon accepted the executed
consent agreement and placed such agreement on the public record for a
period of thirty (30) days, and having duly considered the comments
received from interested persons pursuant to Section 2.34
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2
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COMPLAINT
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EXTRACTED KEY WORDS
ACT RESPONDENT PRACTICES CONSUMERS ALLEGES CIGARS COMPLAINT AFFECTING COMMERCE DISCLOSE FACTS REASON VIOLATION ADVERTISING SALE FAILURE UNFAIR CANCERS MOUTH ORAL CAVITY THROAT ESOPHAGUS LARYNX LUNGS PURCHASE SUBSTANTIAL INJURY COUNTERVAILING BENEFITS COMPETITION DONALD CLARK |
002 3203
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
LANE LIMITED, a corporation.
Docket No. C-3969
COMPLAINT
The Federal Trade Commission, having reason to believe that Lane
Limited, a corporation ("respondent"), has violated the provisions of
the Federal Trade Commission Act, and it appearing to the Commission
that this proceeding is in the public interest, alleges:
1. Respondent Lane Limited is a New York corporation with its
principal office or place of business at 2280 Mountain
Industrial Blvd., Tucker, GA 30084.
2. Respondent has manufactured, advertised, labeled, offered
for sale, sold, and distributed products to the public,
including cigars.
3. The acts and practices of respondent alleged in this
complaint have been in or affecting commerce, as "commerce" is
defined in Section 4 of the Federal Trade Commission Act.
4. In its advertising, labeling, and sale of cigars, respondent
has failed to disclose that regular cigar smoking can cause
several serious adverse health conditions including, but not
limited to, cancers of the mouth (oral cavity), throat
(esophagus and larynx), and lungs. These facts would be
material to consumers in their purchase and use of the product.
Respondent's failure to disclose these facts has caused or is
likely to cause substantial injury to consumers that is not
outweighed by countervailing benefits to consumers or
competition and is not reasonably avoidable by consumers.
Therefore, the failure to disclose these facts was, and is, an
unfair or deceptive practice.
5. The acts and practices of respondent as alleged in this
complaint constitute unfair or deceptive acts or practices in
or affecting commerce in violation of Section 5 of the Federal
Trade Commission Act.
THEREFORE, the Federal Trade Commission this eighteenth day of August,
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3
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AGREEMENT CONTAINING CONSENT
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EXTRACTED KEY WORDS
WARNING STATEMENT FEDERAL TRADE COMMISSION CIGAR ADVERTISING PACKAGE ADVERTISEMENT UNITED STATES PROPOSED RESPONDENT DISPLAY AGREEMENT DRAFT COMPLAINT REPRESENTATION SQUARE INCHES ACT PRINCIPALS SURFACE AREA JURISDICTIONAL FACTS DISTRIBUTION TOTAL AREA PRACTICES DIMENSIONS CONSENT ORDER UTILITARIAN ITEMS MATERIALS PRINCIPAL DISPLAY PANEL DISSEMINATION MERCHANDISER FEDERAL CIGARETTE LABELING RECTANGULAR |
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
LANE LIMITED, a corporation.
FILE NO. 002-3203
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission has conducted an investigation of certain
acts and practices of Lane Limited ("proposed respondent"). Proposed
respondent, having been represented by counsel, is willing to enter
into an agreement containing a consent order resolving the allegations
contained in the attached draft complaint. Therefore,
IT IS HEREBY AGREED by and between Lane Limited, by its duly
authorized officer, and counsel for the Federal Trade Commission that:
1. Proposed respondent Lane Limited is a New York corporation
with its principal office or place of business at 2280 Mountain
Industrial Blvd., Tucker, GA 30084.
2. Proposed respondent admits all the jurisdictional facts set
forth in Paragraphs 1 through 3 of the draft complaint.
3. Proposed respondent waives:
a. Any further procedural steps;
b. The requirement that the Commission's decision contain
a statement of findings of fact and conclusions of law;
and
c. All rights to seek judicial review or otherwise to
challenge or contest the validity of the order entered
pursuant to this agreement.
4. The agreement shall not become part of the public record of
the proceeding unless and until it is accepted by the
Commission. If this agreement is accepted by the Commission,
it, together with the draft complaint, will be placed on the
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4
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ANALYSIS
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EXTRACTED KEY WORDS
CIGAR ADVERTISING HEALTH PROPOSED ORDERS COMMISSION NATIONWIDE TOBACCO PACKAGES DISPLAY LABELING CONSENT ORDERS WARNING STATEMENTS CONSUMERS REPORT REGULAR RESPONDENTS DISCLOSURE AGREEMENTS MATTER SURGEON GENERAL WARNING CIGAR SMOKING HEALTH RISKS SMOKELESS TOBACCO ACT FTC PUBLICATION CIGARETTES CANCER FORMAT |
_________________________________________________________________
ANALYSIS OF PROPOSED CONSENT ORDERS
TO AID PUBLIC COMMENT
_________________________________________________________________
The Federal Trade Commission has accepted, subject to final approval,
agreements containing consent orders from the following cigar
manufacturers, importers or marketers:
Swisher International, Inc. (Matter No. 002-3199);
Consolidated Cigar Corporation (Matter No. 002-3200);
Havatampa, Inc. (Matter No. 002-3204);
General Cigar Holdings, Inc. (Matter No. 002-3202);
John Middleton, Inc. (Matter No. 002-3205);
Lane Limited (Matter No. 002-3203); and
Swedish Match North America, Inc.(Matter No. 002-3201).
The proposed consent orders have been placed on the public record for
thirty (30) days for the receipt of comments by interested persons.
Comments received during this period will become part of the public
record. After thirty (30) days, the Commission will again review the
agreements and comments received and will decide whether it should
withdraw from the agreements and take appropriate action or make final
the agreements' proposed orders.
Background
In July 1999, the Federal Trade Commission provided a Report to
Congress, entitled Cigar Sales and Advertising and Promotional
Expenditures for Calendar Years 1996 and 1997 ("Commission Report").
The Commission Report recommended that, given the significant increase
in cigar smoking prevalence in recent years and the serious health
risks posed by cigar smoking, cigars should be regulated in a manner
consistent with the current regulation of cigarettes and smokeless
tobacco. See Federal Cigarette Labeling and Advertising Act, 15 U.S.C.
§ 1331 et seq.; Comprehensive Smokeless Tobacco Health Education Act
of 1986, 15 U.S.C. § 4401 et seq. The Commission Report recommended
that Congress either enact legislation to require federal health
warnings on cigar labeling and advertising or direct the Commission to
use its existing authority, under Section 5 of the Federal Trade
Commission Act, to require cigar health warnings.
In November 1999, in the Joint Explanatory Note of the Conferees to
H.R. 3421 Appropriations Bill, the Congressional Appropriations
Committees responded to the Commission Report by directing the FTC to
report back to the Committees on Commission plans to establish
"uniform Federal health warning label(s)."
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