Suing Tobacco Companies on the Rise

US Tobacco Companies in Trouble

On 19th February 2010, the US Justice Department asked the Supreme Court to review a  federal fraud racketeering conviction (2006) against the tobacco industry and to authorize the district judge to require the tobacco companies in the case to give up $280 billion which was described as their “ill-gotten gains."

 From 19th February 2010, the US Supreme Court is 'smoking' literally as a huge number of tobacco companies are being sued. The dispute is that the cigarette companies must pay under the federal RICO law.

The twist in these events was sparked off by the U.S. Solicitor General Elena Kagan, who filed a brief in U.S. v. Philip Morris. He stated that the US government can recover about $300 billion from the tobacco industry under the Racketeer Influenced and Corrupt Organizations Act. 

To top it all, a consortium of health as well as anti-tobacco groups are suing these tobacco companies. Their petition has been filed before the Supreme Court, seeking return of profits from these tobacco companies.  There is considerable debate about the government filing and this unexpected legal dispute has gathered exceptional importance in the US.

India Consumption: Tobacco Industry and Laws

In India, the use of tobacco has gained tremendously since 1600, the year it was introduced in the country through Portuguese traders.  Beedi smoking is the most popular form of tobacco use in India.  The use of Paan with tobacco is also very popular.  The estimated number of tobacco users in India (above the age of 10 years) is 250 million! No wonder, tobacco companies advertising is so visible and popular in every part of the country. It is also attributed to causing a huge number of coronary and obstructive heart diseases in the country.

In July 1999, the High Court of Kerala delivered a pathbreaking judgment that banned smoking in public places. Following this, in 2001, the Supreme Court also banned smoking in public places.

In 2003, the Indian government enacted the Cigarettes and Other Tobacco Products Act.  Highlights of this Act include:

• Ban on smoking in all public places including indoor work places
• Ban on direct/indirect tobacco companies advertising
• Ban on selling tobacco in any form to minors
• Ban on selling tobacco within 100 yards of any educational institution
• English and one or more vernacular language must be used to issue warning about the health hazards of tobacco consumption
• Tobacco product packaging must state the ingredients on the pack itself.

Non-compliance with these rules provide for stringent penalties. Any person who manufactures, or sells or distributes tobacco products without warning shall be punished.