Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

US Supreme Court rejects tobacco firms' appeal over graphic warnings

Published 11/25/2024, 09:43 AM
Updated 11/25/2024, 11:31 AM
© Reuters. A half-burnt cigarette is placed beside the breakroom door for the next smoke break between sessions at the Barnett Community Center in Huntington, West Virginia, U.S. May 4, 2017. REUTERS/Lexi Browning/File Photo
VGR
-
BTI
-
IMBBY
-

By John Kruzel

WASHINGTON (Reuters) -The U.S. Supreme Court declined on Monday to decide whether federally mandated warnings on cigarette packs that graphically illustrate the health risks of smoking violate the free speech rights of tobacco companies opposed to the labels.

The justices turned away an appeal by RJ Reynolds and other tobacco companies of a lower court's ruling that found that a set of health warnings required by the U.S. Food and Drug Administration did not violate the rights of the companies under the U.S. Constitution's First Amendment. The action by the justices means the lower court's ruling stands.

The rule was adopted by the agency in 2020 during Donald Trump's first presidential administration. The FDA required that warnings about the risks of smoking occupy the top 50% of cigarette packs and top 20% of advertisements. The regulation is technically in effect, but the FDA has generally withheld enforcing it amid legal challenges.

The set of 11 warnings include depictions of feet with amputated toes, a baby whose fetal growth had been stunted, and a woman with a large protrusion in her neck caused by cancer, along with written descriptions of various health risks.

RJ Reynolds, which is part of British American Tobacco (NYSE:BTI), ITG Brands, which is part of Imperial Brands (OTC:IMBBY), Liggett, which is part of Vector Group (NYSE:VGR), and other tobacco companies sued in 2020 to challenge the warning labels.

The companies claimed, among other things, that the health warnings violated their free speech rights by compelling the companies to endorse the U.S. government's anti-smoking message through images they said misrepresented or exaggerated health consequences of smoking.

U.S. smoking rates have fallen dramatically in the past six decades, from 42.6% of American adults in 1965 to 11.6% in 2022, according to the American Lung Association. But, according to the U.S. Centers for Disease Control and Prevention, smoking still causes more than 480,000 U.S. deaths annually.

The FDA said the warnings were justified by the U.S. government's interest in promoting greater understanding of the health risks from smoking, and reducing confusion and deception. The agency argued that the illustrated warnings were necessary because text-only warnings failed to deter teenagers from smoking. 

U.S. District Judge J. Campbell Barker in Tyler, Texas, in 2022 blocked the regulation, finding that the graphic warnings violated First Amendment protections. 

But the New Orleans-based 5th U.S. Circuit Court of Appeals in March found that the disputed warnings were "factual and uncontroversial," thus satisfying the relevant legal standard under the First Amendment. This prompted the tobacco companies to appeal to the Supreme Court.

© Reuters. A half-burnt cigarette is placed beside the breakroom door for the next smoke break between sessions at the Barnett Community Center in Huntington, West Virginia, U.S. May 4, 2017. REUTERS/Lexi Browning/File Photo

RJ Reynolds declined on Monday to comment on the court's decision to deny its appeal.

In a separate case involving the FDA, the Supreme Court on Dec. 2 is set to hear arguments over the agency's denial of applications to sell flavored vape products.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.