US: Liggett Admission Encourages FDA

In the United States the decision by the Liggett Group, the manufacturer of several famous cigarette brands, including Chesterfield, to state publicly that cigarettes are addictive, will significantly strengthen the hand of the US Food and Drug Administration (FDA) in its efforts to curtail tobacco advertising .

Liggett – the smallest of the major US tobacco companies – made its announcement on 20 March, as part of a settlement of legal action with 22 states currently suing tobacco companies. Liggett has already broken ranks with the other major tobacco producers when in March 1996 it settled with five states seeking to recover the cost of health-care.

The settlement involves Liggett paying 22 states $25 million immediately and 25 per cent of its pre-tax profits for the next 25 years. BAT Industries -through its US subsidiary Brown & Wlliamson – is reported to