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12TOBACCOOUTLETBUSINESSJULYAUGUST2009NEWSTRENDSJULYAUGUST2009InMayathree-judgepanelo0theU.S.Courto0AppealsinWashingtonuphelda2006landmarkrulingthatrequiresmanu0acturerstochangethewaytheymarketcigarettes.Onholdpendingappealtherequirementswouldbancigarettepackaging0romusingtermssuchasx1clow-tarx1dx1clightx1dx1cultralightx1dandx1cmild.x1dTherulingistheresulto0a1999civilcasex1ledbythegovernmentagainstcigarettemanu0acturersx14includingPhilipMorrisAltriaR.J.ReynoldsTobaccoCo.BrownWilliamsonTobaccoCorp.BritishAmericanTobaccoLtd.LorillardTobaccoCo.andLiggettGroupInc.AjudgelaterexcusedLiggett0romtherulingcitingthe0actthatthecompanycame0orwardinthe1990stoadmitthatsmokingisaddictiveandhassincecooperatedwithgovernmentinvestigators.Themanu0acturerswerechargedwithviolatinga1970racketeeringlawcommonlyknownasRICOusedprimarilytoprosecutemobstersincasesinwhichtherehasbeenagroupe00orttocommit0raud.Prosecutorsarguedthatthecompaniessecretlypledgednottocompeteoverwhoseproductsweretheleasthazardoustoavoidhavingtopubliclyaddresstheharmcausedbysmoking.Thecourtsbasedtheirdecisioninpartonresearchpresentedduringthetrialsuggestingthatsmokerscompensate0orreducednicotineinx1clow-tarx1dcigarettesbytakingmore0requentpu00sandinhalingmoredeeply.x1cThecourtx19sconclusionsarenotsupportedbythelawortheevidencepresentedattrialandwebelievetheexceptionalimportanceo0theseissuesjustix1es0urtherreviewx1dwroteMurrayGarnickanattorney0orAltriainastatementrespondingtotheruling.PhilipMorrisUSAanditsparentcompanyAltriaGroupInc.havesaidtheywillappealtotheSupremeCourt.R.J.Reynoldsisalsoreportedlyconsideringappeal.x1cR.J.Reynoldsstronglybelievesthatneithertheevidencepresentedattrialnorthelegalstandardsjusti0yax1ndingo0liabilityx1dsaidcompanyattorneyMartinL.HoltonIIIinastatementontheruling.CigaretteMakersLoseAppealAppealscourtrulestobanx1clow-tarx1dandx1clightx1dlabels.SmokerFriendlyReadiesFestivalHigHligHtsThenewpolicywhichwentintoe00ectApril12009refectsincreasingawarenessinrecentyearsthatretailersneedtotakeadditionalstepstorestrictthesaleso0tobaccotominorssaysPaige.Previouslyhiscompanypostedannouncementsattheentranceo0eachlocationthataccesswasrestrictedtoadultsovertheageo018.Butbecausethatpolicywasnot100percentsuccess0ulinpreventingunderagesaleso0tobaccoPaigeoptedtoscantheidentix1cationo0everycustomer.Asaresulthesaysminorswhoenterthestorenowx1ndthattheywillnotbeservedwithoutprovidinggovernment-issuedidentix1cationx1candpromptlyleavethepremisesanddonotreturntoattempt0uturepurchases.x1dThenewsystememploysregisterscapableo0scanningthebarcodesthatnowcommonlyappearongovernment-issuedidentix1cationtoveri0yacustomerx19sagebe0oreeachsaleistotaled.x1cByscanningthisbarcodewhichisverydi0x1cultto0orgepurchaserswith0orgedor0akeidentix1cationareidentix1edanddeniedattheregisterx1dsaysPaige.x1dThislevelo0verix1cationprotectsboththecompanyandthecashier0rompotentialprosecutionwhichcanrange0rom250tosuspensiono0theretailerx19slicensetoselltobaccodependingonthenatureandnumbero0o00ensesinConnecticut.Whilemostcustomersapplaudtheretailerx19se00ortsahand0ulhavere0usedtoprovideCONTINUEDONPAGE14The13thannualSmokerFriendlyInternationalCon0erenceTobaccoFestivalwillopenattheMillenniumHarvestHouseinBoulderColo.onAug.31.Thetwo-dayeventwillincludelegislativeupdates0romindustryexpertsincludingRobertStoweseniorvicepresidento0trademarketingatR.J.ReynoldsTobaccoCo.DanCarrpresidento0GeneralCigarLarryWexlerpresidento0NationalTobaccoBhavaniParameswarCEOo0KingMakerMarketingTomBriantexecutivedirectoro0theNationalAssociationo0TobaccoOutletsChrisMcCallalegislativedirectoro0theIPCPRDavidRiservicepresidento0externalrelationsR.J.ReynoldsTobaccoCo.PaulReuterCEOo0theCSPIn0ormationGroupandmoderatoro0theindustrypanelandFarrellDelmanpresidento0theTobaccoMerchantsAssociationTMAandalsoamoderatoro0thelegislativepanel.x1c2009hasshapeduptobeanexcitingyettumultuousyear0orthetobaccoindustryasawholex1dsaysSmokerFriendlyx19sMarySzarmach.x1cThisisaneventandagroupthattrulybelievesthereisa0uture0orthesecommoditiesandwecanprovidetobaccopleasure0oradultconsumersx1d