America’s Parade of Corporate Scandals

Tobacco Companies Learned About Health Risks Internally as Early as the 1940s-1950s

- Internal tobacco industry documents reveal that senior scientists and executives within cigarette companies knew about the cancer risks of smoking as early as the 1940s and were aware that smoking could cause lung cancer by the mid-1950s.[1]

- By 1959, the industry was well aware of the presence of radioactive substances in tobacco and that cigarette smoke contained radioactive alpha particles that posed cancer risks.[2]

- Company scientists at R.J. Reynolds acknowledged as early as 1956 that cigarette smoke contained several polycyclic aromatic hydrocarbons with carcinogenic activity and required complete or almost complete removal.[1]

- A 1958 report from British American Tobacco noted that "with one exception the individuals whom we met believe that smoking causes lung cancer," and by 1961, a Liggett and Myers memorandum stated there are "biologically active materials present in cigarette tobacco" that are "cancer causing," "cancer promoting," and "poisonous".[1]

- Despite this internal knowledge, tobacco companies continued to publicly deny the health risks and reassure consumers that their products were safe throughout the following decades.[1]

The Industry Used Sophisticated Fake Science and Public Relations to Confuse the Public

- In December 1953, CEOs of major tobacco companies met secretly in New York City to counter damage from studies linking smoking to lung cancer, working with PR giant Hill & Knowlton to create "A Frank Statement to Cigarette Smokers" published in 448 newspapers on January 4, 1954.[3]

- The Frank Statement was "a charade, the first step in a concerted, half-century-long campaign to mislead Americans about the catastrophic effects of smoking".[3]

- A notorious 1969 internal memo from R.J. Reynolds stated: "Doubt is our product since it is the best means of competing with the 'body of fact' that exists in the mind of the general public".[4][5]

- The tobacco industry established the Tobacco Industry Research Committee in 1953 to cast doubt upon legitimate science, presenting itself as objective while being concerned only with protecting profits.[6]

- Companies funded biased research through front groups, challenged legitimate science as "junk science," and employed alternative causation arguments claiming tobacco was only one of many potential causes of cancer including stress, pollution, and personality factors.[5]

Major Tobacco Companies Led a Coordinated Misinformation Effort

- The coordinated effort was led by Philip Morris, R.J. Reynolds, Brown & Williamson, Lorillard, and American Tobacco, who jointly funded and published the Frank Statement in 1954.[3]

- These companies created and funded industry front groups including the Tobacco Institute, the Center for Indoor Air Research, and the Council for Tobacco Research to conduct their misinformation campaigns.[7]

- The companies shared strategies, research, and coordinated their public messaging through industry organizations while privately acknowledging the health risks of their products.[3][1]

- They employed the same PR firms, research institutes, and individual researchers to maintain consistent messaging across the industry.[4]

- The coordination extended to legal strategies, with companies working together to challenge regulations and delay effective tobacco control measures.[7]

The Industry Spent Billions on Misinformation and Marketing Campaigns

- In 2015, the tobacco industry spent $8.24 billion on cigarette advertising and promotion in the United States alone, equivalent to nearly $1 million per hour.[8]

- Historical data shows that in 1999, the three largest cigarette manufacturers spent $8.24 billion on advertising and promotion, meaning the industry spent almost $1 million an hour, 24 hours a day, 365 days a year.[9]

- The industry spent over $12.49 billion in 2006 (more than $35 million per day) advertising their products, making tobacco products one of the most marketed products in the United States.[10]

- A recent analysis of Philip Morris spending in Switzerland alone revealed CHF 6.5 million spent on exclusive print tobacco advertisements within just one year, demonstrating the massive resources devoted to influence campaigns.[11]

- These expenditures were specifically designed to create doubt about health risks, recruit new smokers to replace those dying from tobacco-related diseases, and prevent effective regulation.[5][10]

The Industry Delayed Effective Public Response for Approximately 50 Years

- The first definitive scientific evidence linking smoking to cancer emerged in the 1950s, but effective comprehensive tobacco control measures weren't implemented until the 1990s with the Master Settlement Agreement.[7][3]

- The 1964 Surgeon General's report conclusively established that smoking causes cancer, but the industry continued its denial campaign for decades afterward.[12][1]

- From 1954 to 1998, the industry maintained a consistent strategy of denial, doubt-creation, and regulatory resistance spanning approximately 44 years.[7][3]

- Even after the Master Settlement Agreement in 1998, tobacco companies continued to resist admitting fault and were not required to run court-ordered corrective advertisements until 2017—nearly 20 years later.[13]

- The delay in effective public response allowed the industry to maintain market share and recruit new smokers while scientific consensus about tobacco's dangers solidified.[3]

Millions Died During the Industry's Deliberate Delay of Truth and Action

- Since the first Surgeon General's report in 1964, more than 20 million premature deaths can be attributed to cigarette smoking in the United States.[14]

- Over the course of the 20th century, tobacco smoking killed around 100 million people globally, most of them in today's rich countries.[15]

- During the 11-year delay between the 2006 court finding and the 2017 corrective advertisements, more than 5 million people died from tobacco in the United States.[13]

- Current estimates indicate that tobacco kills more than 490,000 Americans annually—more than AIDS, alcohol, car accidents, illegal drugs, murders, and suicides combined.[16]

- Without the industry's misinformation campaign, an estimated 8 million American lives have been saved since anti-smoking measures began following the 1964 Surgeon General's report, suggesting millions more could have been saved with earlier action.[17]

Opponents Required Massive Legal Action to Force Industry Accountability

- The breakthrough came when 46 state attorneys general collectively launched the largest class action lawsuit in U.S. history to recover the costs of caring for smokers.[18]

- Four states (Florida, Minnesota, Mississippi, and Texas) reached separate settlements before the Master Settlement Agreement, demonstrating the power of sustained legal pressure.[19]

- The tobacco industry only agreed to the Master Settlement Agreement in 1998 to avoid possible bankruptcy from the overwhelming number of lawsuits that threatened their businesses.[18]

- Court-ordered corrective advertisements were required after a federal judge found in 2006 that tobacco companies violated civil racketeering laws by systematically defrauding the American people.[13]

- Individual smokers and families had to pursue separate lawsuits, with recent verdicts including a $200 million award in Boston in 2023 and a $37 million award in Massachusetts for a family affected by "light" cigarette deception.[20]

The Industry Continued to Duck Consequences Even After Legal Defeat

- The Master Settlement Agreement did not grant the tobacco industry immunity from future lawsuits, and companies continue to face individual liability cases.[18]

- Tobacco companies spent 11 years fighting to weaken the language of court-ordered corrective advertisements, delaying their implementation until 2017.[13]

- The industry adapted by finding new markets, developing new products like e-cigarettes marketed as "harm reduction," and shifting focus to international markets.[21]

- Companies continue to challenge regulations through legal means, lobby against tobacco control policies, and employ sophisticated marketing tactics despite settlement restrictions.[6]

- Rather than accepting full responsibility, the industry has repositioned itself as part of the solution through corporate social responsibility campaigns and claims about developing "reduced-risk" products.[22][6]

Public Regulation Achieved Significant but Incomplete Success

- The Master Settlement Agreement forced tobacco companies to pay $206 billion over the first 25 years to compensate states for healthcare costs.[18]

- Cigarette smoking rates in the United States have been cut nearly in half since the 1998 settlement, with high school smoking rates declining from 36.4% in 1997 to 15.7% in 2013.[19]

- Public smoking bans, advertising restrictions, health warnings on packages, and increased taxation have transformed smoking from "an accepted national pastime to a discouraged threat to individual and public health".[14]

- The settlement created the American Legacy Foundation (now Truth Initiative) which funded effective anti-smoking campaigns, particularly the youth-targeted Truth Campaign.[18]

- However, over 42 million Americans still smoke, and tobacco remains the leading cause of preventable death, indicating that complete victory has not yet been achieved.[16][14]

The Tobacco Playbook Was Adopted by Other Harmful Industries

- The fossil fuel industry has directly adopted tobacco industry strategies, using the same PR firms, research institutes, and many of the same researchers to challenge climate science.[23][4]

- New research reveals that the "tobacco playbook" actually originated with Big Oil in the 1950s, which developed organized doubt campaigns before tobacco companies refined these strategies.[23]

- Industries that have employed tobacco-style misinformation tactics include those producing asbestos, lead, DDT, acid rain-causing chemicals, benzene, vinyl chloride, diacetyl, tetraethyllead, flame retardants, aromatic amines, beryllium, and sugar-sweetened beverages.[4][5]

- At least 35 organizations have been identified that promote both tobacco and fossil fuel industry interests, with 32 receiving direct tobacco donations and 29 receiving fossil fuel funding.[24]

- The strategy has been formalized as the "Policy Dystopia Model" with tactics including information management, reputation management, coalition management, front groups, media manipulation, and political lobbying.[25][6]

Examples of Tobacco Industry Front Groups

• Major tobacco front groups include the Tobacco Institute, Center for Indoor Air Research, Council for Tobacco Research, International Tobacco Growers' Association, National Smokers Alliance, Get Government Off Our Back (GGOOB), and the American Legislative Exchange Council (ALEC). [https://www.tobaccotactics.org/topics/front-groups/]

• These organizations were publicly presented as independent or grassroots bodies while being secretly funded and directed by tobacco companies.

• They gave cover for the industry's agenda, allowing tobacco interests to push anti-regulatory messages with increased credibility.

• Front groups have also appeared internationally, such as the International Tobacco Growers' Association (ITGA), which lobbies for tobacco grower interests while advancing corporate goals.

• Some, like ALEC, have also provided model legislation favorable to the tobacco industry.

How Tobacco Front Groups Operate

• These groups create an illusion of being independent, expert, or broad-based popular organizations working in the public’s interest. [https://pmc.ncbi.nlm.nih.gov/articles/PMC1805008/]

• They commission and disseminate biased research designed to cast doubt on legitimate science and reframe independent findings as “junk science.”

• Alliances are formed with ideological or community organizations, sometimes offering financial incentives for support or advocacy.

• Front groups generate apparent grassroots mobilization (“astroturfing”), mobilizing public comment campaigns or protests while hiding real funding sources.

• Policy lobbying is conducted indirectly, presenting anti-regulation arguments as if coming from citizens or issue-based coalitions rather than from tobacco companies.

Why Tobacco Front Groups Are Effective

• By appearing independent and grassroots, front groups gain more trust and effectiveness with policymakers and the public than direct company lobbying. [https://no-smoke.org/smokefree-threats/opposition-groups/]

• Concealing tobacco industry sponsorship prevents stigma and public suspicion, making the group's advocacy seem genuine and less self-interested.

• Such groups can bring together partners from diverse backgrounds, broadening their influence and ability to amplify messages.

• Maintaining industry secrecy shields tobacco firms from direct criticism and allows for plausible deniability regarding the group’s true purpose.

• These networks use experienced public relations agencies to ensure coordinated and consistent messaging that targets key audiences with maximum persuasion.

Corporate Sins Illustrated by the Tobacco Case

Fraud: Deliberately concealing known health risks while publicly denying scientific evidence and making false safety claims.

Exploiting Weaknesses in Society's Protective Systems: Manipulating regulatory processes, exploiting legal loopholes, and using the lengthy nature of scientific consensus-building to delay action.

Manipulating or Subverting the Public or Government: Creating front groups, funding biased research, employing sophisticated PR campaigns to manufacture doubt, and lobbying extensively against public health measures.

Economic Harm: Imposing massive healthcare costs on society ($241 billion annually in the U.S.) while maintaining profits through deceptive practices.

Harming the Structure of the Economy, the Justice System, or Other Civil Institutions: Corrupting scientific research, undermining public trust in legitimate health institutions, and creating a template for other industries to challenge inconvenient science.

Debasing Social Norms or the Culture: Normalizing addiction, targeting vulnerable populations including youth, and creating a culture where corporate profits take precedence over public health.

Physically Harming People: Causing over 100 million deaths in the 20th century and continuing to kill over 8 million people annually worldwide.

Environmental Destruction: While not the primary focus, tobacco cultivation and production contribute to deforestation, pesticide use, and environmental degradation.

[1] https://tobaccocontrol.bmj.com/content/11/suppl_1/i110
[2] https://www.uclahealth.org/news/release/big-tobacco-knew-radioactive-particles-in-cigarettes
[3] https://pmc.ncbi.nlm.nih.gov/articles/PMC2879177/
[4] https://en.wikipedia.org/wiki/Tobacco_industry_playbook
[5] https://www.sciencedirect.com/science/article/pii/S2352827321002846
[6] https://www.tobaccotactics.org/article/tobacco-industry-tactics/
[7] https://en.wikipedia.org/wiki/Tobacco_Master_Settlement_Agreement
[8] https://truthinitiative.org/research-resources/tobacco-industry-marketing/new-report-tobacco-industry-spends-nearly-1-million
[9] https://pmc.ncbi.nlm.nih.gov/articles/PMC2796130/
[10] https://tobacco.stanford.edu/antismoking/anti-industry/industry-lies/
[11] https://pmc.ncbi.nlm.nih.gov/articles/PMC11212386/
[12] https://truthinitiative.org/research-resources/tobacco-prevention-efforts/5-ways-tobacco-companies-lied-about-dangers-smoking
[13] https://truthinitiative.org/research-resources/tobacco-prevention-efforts/big-tobacco-forced-tell-truth-tv-and-print-ads
[14] https://www.hhs.gov/sites/default/files/consequences-smoking-exec-summary.pdf
[15] https://ourworldindata.org/smoking
[16] https://www.tobaccofreekids.org/problem/toll-us
[17] https://ysph.yale.edu/news-article/an-estimated-8-million-lives-saved-since-surgeon-generals-tobacco-warning-50-years-ago-study-finds/
[18] https://pmc.ncbi.nlm.nih.gov/articles/PMC3021365/
[19] https://www.tortmuseum.org/98-tobacco-settlement/
[20] https://realjustice.com/mass-tort/tobacco-product-liability-lawsuit/
[21] https://www.wfpha.org/big-tobaccos-dirty-tricks-a-casebook/
[22] https://exposetobacco.org/news/tobacco-industry-lies/
[23] https://www.ciel.org/news/oil-tobacco-denial-playbook/
[24] https://www.desmog.com/2019/02/19/how-tobacco-and-fossil-fuel-companies-fund-disinformation-campaigns-around-world/
[25] https://pmc.ncbi.nlm.nih.gov/articles/PMC10731746/