Federal District Judge William Osteen ruled in North
Carolina on Friday that the FDA has the power to regulate
tobacco as a drug, but said it "cannot impose its far
reaching advertising and promotion restrictions on the
tobacco industry," according to John Schwartz of the
WASHINGTON POST. The ruling means that tobacco companies
can continue their sponsorships of sporting events,
including auto racing. R.J. Reynolds, through its Winston
brand, is the primary sponsor of the NASCAR circuit, and
Philip Morris "has significant involvement with the IndyCar
series." Dan Jaffe, Exec VP/Assoc. of National Advertisers,
who sued the FDA over the regulations, said advertising "won
a major victory," and called the decision a "very important
step for the protection of First Amendment rights for
advertisers in this country" (WASHINGTON POST, 4/26).
FROM THE TRACK: NASCAR President Bill France: "We
think it's great." RJR reportedly spends between $25-30M in
motorsports ads and promotion each year. T. Wayne
Robertson, President of Sports Marketing Enterprises, the
sports marketing arm of RJR: "We're very happy with the
ruling as it relates to advertising. As far as the racing
series and sports sponsorships and marketing programs we
have, this ruling says we will be able to continue doing
that. This really clears the way for us to continue what
we've been doing" (AP/SPEEDNET, 4/26). John Fithian,
attorney for the American Advertising Federation: "Joe Camel
lives. ... Winston Cup is alive" (ORLANDO SENTINEL, 4/26).
