Feature Article

In Lockyer v. R.J. Reynolds, decided on December 22, the California Supreme Court unanimously upheld a state law prohibiting the free distribution of cigarettes. The defendant, R.J. Reynolds Tobacco Company, was charged with six violations of California Health and Safety Code §118950, which prohibits the free distribution of cigarettes, except at a private function where minors are denied access. The defendant appealed to the California Supreme Court on three separate issues challenging whether the events hosted by R.J. Reynolds actually violated §118950 of the California Health and Safety Code, whether the §118950 of the California Health and Safety Code was preempted by the Federal Cigarette Labeling and Advertising Act (15 U.S.C. §1334b), and whether the $14.8 million fine imposed by the California Court of Appeals was excessive.

The California Supreme Court found that R.J. Reynolds had indeed violated the law. R.J. Reynolds claimed that it had not violated the law because it only distributed cigarettes to people of legal age, but the Court ruled that the statute prohibited the free distribution of cigarettes in public places, even to adults. The Court also held that the federal government's exclusive authority to regulate cigarette promotions did not preclude individual states from the regulation of the free giveaways. It noted that states retain the authority to regulate cigarettes sales (as opposed to promotions), and that "in terms of smoking's adverse effect on health, there is very little distinction between the sale of cigarettes at full retail price, the sale of cigarettes at discounted prices, and the free distribution of cigarettes - all place cigarettes in the hands of the public." However, R.J. Reynolds was successful in arguing that the $14.8 million fine imposed by the California Court of Appeals should be reconsidered. The case was remanded to the lower court for reconsideration of the fine.

Pursuant to the Master Settlement Agreement, cigarette manufacturers have agreed not to distribute free samples of cigarettes except in adult-only facilities. The California law goes further than the MSA, because it prohibits free giveaways of cigarettes in adult-only facilities that are open to the general public.

For the full text of the decision (PDF), click here.