Friday, October 29, 2010

FDA De-Lights

This past summer, smokers may have noticed a change in some of their cigarette packages. For example, popular varieties such as “Marlboro Lights” and “Newport Lights” have been re-branded “Marlboro Gold” and “Newport Menthol Gold.” This is due to the recent Family Smoking Prevention and Tobacco Control Act that has restricted the use of labeling cigarettes with misleading terms that might suggest those varieties cause fewer health problems. In an effort to educate all smokers on the health risks of smoking, the FDA has prohibited the production of tobacco products labeled “light,” “low,” and “mild.” Some packages even include notices inside, such as the one depicted, elucidating any false impressions of the “light” varieties.

On the surface, it is easy to identify the affects of packaging regulations like these; bluntly stating that these cigarettes do not help in quitting smoking and that they are not any healthier is a way of making sure consumers are fully informed and are not being mislead by the advertising. This appeals to the public interest and may dissuade potential smokers from taking up these risks. However, these regulations may also help the companies that are producing them. New firms trying to jump into the tobacco industry must find a way to appeal to consumers, but with so many restrictions on what they are allowed to advertise, it is difficult to get their name out to potential consumers. Because established companies like Phillip Morris already have multiple cigarette brands out, consumers have no incentive to switch to other cigarette brands, especially if the clearly stated risks are going to be the same. This regulation protects the few companies already in the oligopoly of the tobacco industry from competition, and allows them to charge higher than optimal prices to consumers.

In my opinion, this regulation hurts more than it benefits the tobacco companies. If the FDA does its job effectively, they could deter potential consumers, not only through the explicit caveats, but because of the higher cost of taking up smoking.

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