Corporate Principles on Marketing, Promotion and Youth Smoking
These Corporate Principles set out Lorillard’s core guidelines, restrictions, prohibitions and requirements which govern our marketing activities. A number of these provisions and practices have been in place at Lorillard for more than fifty years, and other more restrictive provisions have been adopted over time in an effort to reduce youth exposure to cigarette advertising, and to comply with increasingly stringent laws and regulations. In June 2009, the President signed into law the Family Smoking Prevention and Tobacco Control Act (FSPTCA) which authorized the Food and Drug Administration to regulate the manufacture and sale of tobacco products. The Corporate Principles have been revised (a) to incorporate new marketing restrictions imposed by the FSPTCA, and (b) to include pre-existing Lorillard marketing restrictions and guidelines which had not previously been reflected in the Corporate Principles.
We intend to strictly comply with the letter and spirit of all legal, regulatory and other restrictions, prohibitions, requirements, and guidelines which govern Lorillard’s marketing activities. To demonstrate and renew that commitment, Lorillard Tobacco Company reaffirms the following Corporate Principles.
Marketing and Promotion
All tobacco product marketing activities must be targeted to adult tobacco consumers, 21 and older.
To help ensure we meet this important corporate principle, Lorillard requires full compliance with:
- All laws, regulations, and legal requirements that govern the marketing of Lorillard’s products.
- All of the following restrictions, prohibitions, and requirements regarding advertising, media, market and consumer research, product sampling, direct mail and internet sales, premium items and continuity programs, and sponsorship.
Advertising Content Restrictions, Prohibitions and Requirements
- The packaging, advertising and promotional materials for Lorillard’s tobacco products must contain the health warnings required by federal law, and shall not otherwise contain health claims.
- Lorillard shall not use cartoons in the advertising, promotion, packaging or labeling of its tobacco products.
- Lorillard shall not use models in its tobacco product advertising who are, or appear to be, under 25 years of age.
- Lorillard’s advertising must not suggest that the use of tobacco products is essential to social prominence, distinction, success or sexual attraction, nor shall it picture a person consuming tobacco in an exaggerated manner.
- Lorillard’s advertising may not suggest that physical attractiveness or good health is due to tobacco use.
- Lorillard’s advertising must not depict anyone who is, or has been, a well-known athlete; nor shall Lorillard’s advertising show any person participating in, or obviously just having participated in, a physical activity requiring stamina or athletic conditioning beyond that of normal recreation.
- Lorillard’s advertising may not use sports or celebrity testimonials or those of others who would have special appeal to persons under 21 years of age.
- Lorillard shall not market tobacco products using product descriptors “light,” “mild,” “low” or other similar descriptors.
Media Restrictions and Prohibitions
- Lorillard will not advertise its tobacco products on television, radio, billboards or transit.
- Lorillard will not advertise its tobacco products in any publication with reported youth readership of 15% or greater or two million or more youth readers.
- Lorillard will not make any payment or give its approval to any other person or entity to use Lorillard’s tobacco products or brand names in any movie, television show, theatrical production or other live performance, live or recorded musical performance, commercial film or video, or video game that is intended for distribution or display to the public.
Consumer Research Restrictions
- Lorillard shall not conduct market research for its tobacco products involving persons who (a) are under 21 years of age, or (b) are not consumers of tobacco products.
Cigarette Sampling Prohibition
- Lorillard will not distribute free samples of cigarettes.
Direct Mail and Internet Restrictions
- Lorillard’s direct mail and internet advertising and promotional materials shall only be distributed to persons (a) who certify that they are a tobacco consumer, and that they want to receive ads and promotional materials from Lorillard, and (b) whose age has been verified to be 21 or older.
- Lorillard will not sell tobacco products or redeem coupons through the mail.
Premium Item and Continuity Program Restrictions and Prohibitions
- Lorillard will not offer non-tobacco gifts or items in exchange for or related to the purchase of its tobacco products. Lorillard does conduct consumer programs where a consumer can purchase cigarettes at reduced prices.
- Lorillard will not market, sell or otherwise distribute to the public any item (other than tobacco products) which bears a Lorillard tobacco product brand name or other indicia of a Lorillard tobacco product brand name.
- Lorillard will not use its tobacco product brand names or other indicia of product identification (e.g. logos, symbols, mottos, selling messages, recognizable color or pattern of colors) to sponsor any athletic, musical, artistic, or other social or cultural event or any entry or team in any event, nor shall Lorillard’s tobacco product advertising refer to any event sponsored in the name of a celebrity or other person in such an event.
- Lorillard will not market cigarettes in packages that contain fewer than 20 cigarettes.
Additional Restrictions and Prohibitions
- Lorillard will not use a brand name for its tobacco products which is a brand name or trade name of any non-tobacco item or service, or any nationally recognized or nationally established sports team, entertainment group or individual celebrity, other than tobacco product brand names already being used by Lorillard.
- Lorillard will not market any tobacco product in a vending machine or through a self service display unless located in a facility where no person under the age of 18 is permitted.
Youth Tobacco Use
Through these Corporate Principles, sponsorship of Lorillard’s Youth Smoking Prevention Program, support of the “We Card” program, and strict adherence to all laws and regulations regarding the manufacture and sale of its products, Lorillard supports efforts to counter the use of tobacco products by youth.
- Lorillard endorses the designation of our schools as “tobacco free” zones, and endorses efforts to eliminate tobacco product advertising in schools or on school property.
- Through its financial support of “We Card,” Lorillard supports the enforcement of laws which require retailers to check the age of potential purchasers of tobacco, and which require periodic checks of retailer compliance with such laws. Lorillard also endorses the vigorous enforcement of current restrictions on youth access to tobacco products, including the use of modern technology to increase the effectiveness of age-of-purchase laws.
- Lorillard endorses further legislative efforts to curb youth access to tobacco products, including, but not limited to, the passage of laws which make the purchase of tobacco products by underage persons punishable by fines and/or community service and compulsory education programs.
- Lorillard strongly encourages its employees to help Lorillard identify additional methods of reducing youth access to and consumption of tobacco products, and has established an employee suggestion system to enable employees’ ideas to be shared with, and if appropriate, acted upon by the Company.
Lorillard expects its employees to comply fully with these Corporate Principles and with all of Lorillard’s obligations under the FSPTCA and all other laws and regulations, and requires them to incorporate these Principles into the daily execution of their job responsibilities.