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      <p> <font size="4" face="Arial, Helvetica, sans-serif"><b>The American Legacy 
        Foundation's &quot;Truth Campaign&quot;:&nbsp; Using tobacco funds for 
        anti-smoking ads</b></font> </p>
      <p align="JUSTIFY">By Martin Morse Wooster<br>
        <font face="Arial, Helvetica, sans-serif" size="-2" color="#666666">web 
        posted July 17, 2000</font></p>
      <p align="JUSTIFY"><font size="3">It&#146;s only been a year and a half 
        since the $206 billion tobacco settlement, but already the once-invincible 
        tobacco industry is bleeding from a thousand cuts.</font></p>
      <p align="JUSTIFY"><font size="3">Anti-smoking activists are in sight of 
        their ultimate goal: a world where cigarette manufacturers are tightly 
        regulated, banned from advertising and primarily devoted to &quot;serving 
        existing customers, while making no overt effort to win new ones,&quot; 
        writes the <i>Christian Science Monitor</i>&#146;s Peter Grier. &quot;Not 
        even the toughest anti-smoking group wants 43 million smokers to have 
        to quit, cold turkey.&quot;</font></p>
      <p align="JUSTIFY"><font size="3">The tobacco wars are being fought on many 
        fronts, but one particularly active battle targets teenagers who smoke. 
        Anti-smoking advertisements are the weapon of choice for the American 
        Legacy Foundation, a private operating foundation created by the tobacco 
        settlement. And American Legacy has many allies &#151; in state health 
        departments, large health charities and anti-tobacco nonprofits &#151; 
        who are devoting much of their energy to persuading teens not to smoke. 
        What are these non-profits doing &#151; and what&#146;s the evidence that 
        their efforts are sufficiently successful to warrant the unusual ploy 
        of forcing the tobacco industry to fund an anti-tobacco foundation?</font></p>
      <p align="left"><font size="3"><i>Billion-Dollar Endowment</i></font></p>
      <p align="JUSTIFY"><font size="3">The American Legacy Foundation traces 
        its origin to the sixth section of the 1998 tobacco settlement. U.S. tobacco 
        manufacturers agreed to give the new foundation $250 million in March 
        1999 and each subsequent year until 2003, for a total endowment of $1.45 
        billion.</font></p>
      <p align="JUSTIFY"><font size="3">&quot;The purposes of the Foundation,&quot; 
        the settlement reads, &quot;will be to support (1) the study of and programs 
        to reduce Youth Tobacco Product usage and Youth substance abuse in the 
        States, and (2) the study of and educational programs to prevent diseases 
        associated with the use of Tobacco Products in the States.&quot; (See 
        the full section of the settlement establishing the American Legacy Foundation 
        at www.americanlegacy.org.)</font></p>
      <p align="JUSTIFY"><font size="3">The settlement also directs that the American 
        Legacy Foundation board include eleven members, two to be appointed by 
        the National Association of Attorneys General, two by the National Governors 
        Association and two by the National Conference of State Legislatures. 
        These six directors must appoint the remaining five directors, of whom 
        one &quot;shall have expertise in public health issues.&quot; The others 
        &quot;shall have expertise in medical, child psychology or public health 
        disciplines.&quot;</font></p>
      <p><font size="3">Clause VI (h) makes important restrictions on what the 
        American Legacy Foundation cannot do: &quot;The Foundation shall not engage 
        in, nor shall any of the Foundation&#146;s money be used to engage in, 
        any political activities or lobbying, including, but not limited to, support 
        of or opposition to candidates, ballot initiatives, referenda or other 
        activities. The National Public Education Fund [the grantmaking portion 
        of the foundation] shall be used only for public education and advertising 
        regarding the addictiveness, health effects and social costs related to 
        the use of tobacco products and shall not be used for any personal attack 
        on, or vilification of, any person (whether by name or business affiliation), 
        company or governmental agency, whether individually or collectively.&quot;</font></p>
      <p align="JUSTIFY"><font size="3">These restrictions played a crucial role 
        in the controversy that surrounded the American Legacy Foundation&#146;s 
        first national advertising campaign.</font></p>
      <p align="left"><font size="3"><i>Grown in Florida</i></font></p>
      <p align="JUSTIFY"><font size="3">The American Legacy Foundation spent most 
        of 1999 hiring staff and launching a $150-million-a-year national advertising 
        campaign. After a nationwide search, it decided to divide its advertising 
        dollars between Arnold Communications, creator of Massachusetts&#146; 
        statewide campaign against teen smoking, and Crispin Porter &amp; Bogulsky, 
        creator of Florida&#146;s anti-smoking ads.</font></p>
      <p align="JUSTIFY"><font size="3">But American Legacy did not just hire 
        the ad agency that created Florida&#146;s war on cigarettes; it also hired 
        Charles &quot;Chuck&quot; Wolfe, who created the Florida campaign, as 
        the foundation&#146;s executive vice-president. So it&#146;s little wonder 
        that the foundation&#146;s campaign is, in effect, an effort to implement 
        the Florida program nationally.</font></p>
      <p align="JUSTIFY"><font size="3">The Florida Tobacco Pilot Program was 
        created in 1998 with funds derived from Florida&#146;s share of the tobacco 
        settlement. The program began with a summit conference of 600 teenagers, 
        who, according to Florida health official Carlea Bauman, were &quot;locked 
        up for four days with all the information we had about tobacco.&quot; 
        Florida officials decided the best way to persuade young people not to 
        smoke was to use the time-honored desire of youth to &quot;stick it&quot; 
        to authority by teaching teens to be skeptical of tobacco ads. In effect, 
        the state wanted Florida youths &quot;to be rebels with a cause,&quot; 
        the <i>Christian Science Monitor</i> reported in July 1998.</font></p>
      <p align="JUSTIFY"><font size="3">Thus began the state-funded Students Working 
        Against Tobacco (SWAT) and their &quot;Truth Campaign.&quot; SWAT and 
        Florida Tobacco Pilot Program officials used many innovative techniques 
        to ensure that their message reached Florida teens. A 10-car &quot;Truth 
        Train&quot; roamed across the state, featuring popular rock groups such 
        as &#145;Nsync, Big Sky and SRO. The campaign was assisted by actor William 
        B. Davis, who portrays the villainous &quot;Cigarette Smoking Man&quot; 
        on &quot;The X-Files.&quot; And a conference featured a panel where the 
        Brown &amp; Williamson corporate answering machine was broadcast to a 
        thousand teenagers &#151; who all shouted messages after the beep.</font></p>
      <p align="JUSTIFY"><font size="3">But at the center of the Truth Campaign 
        are edgy, in-your-face ads, created under a two-year, $50 million contract 
        to Crispin Porter &amp; Bogulsky. One commercial was a witty parody of 
        &quot;The Brady Bunch,&quot; which began, &quot;Here&#146;s the story 
        of a chain-smoking lady.&quot; Another showed teens calling Hollywood 
        producers who made films with characters who smoked and magazine editors 
        whose publications accepted tobacco ads. The teens were shown being put 
        on hold or told evasive answers when they tried to ask why they took tobacco 
        dollars &#151; the same dollars that fund the Truth Campaign.</font></p>
      <p><font size="3">But it&#146;s clear that the Truth Campaign went over 
        the top and kept on going. One early commercial showed a &quot;Demon Awards&quot; 
        ceremony in Hell, featuring a tuxedo-clad tobacco company executive accepting 
        an award for &quot;Most Deaths in a Year&quot; from a cheering audience 
        that included Adolf Hitler, Joseph Stalin and members of the Ku Klux Klan. 
        The <i>St. Petersburg Times</i> editorialized that, by claiming that tobacco 
        companies were as evil as Hitler, the commercial &quot;serves to devalue 
        the Holocaust.... This chapter of history is too important to be diminished 
        or cheapened.&quot; </font></p>
      <p align="JUSTIFY"><font size="3">The Truth Campaign also attracted overseas 
        ire. The state of Florida, reported Hugo Gurdon, a writer for Britain&#146;s 
        <i>Daily Telegraph</i>, &quot;is so outraged about smoking that it has 
        passed clean through seriousness and emerged on the other side in a state 
        of pop-eyed hysteria.... America&#146;s political class has slipped the 
        bonds of sanity and declined into foam-flecked rage about smoking.&quot;</font></p>
      <p align="JUSTIFY"><font size="3">When the Republicans captured the Florida 
        governorship in 1998, some Republican state legislators tried to slash 
        funding for SWAT and the Truth Campaign. Some even threatened to end funding 
        altogether. But angry teenagers from SWAT stormed the Florida statehouse, 
        demanding that funds be restored. The day after the teenage protest, Florida 
        Tobacco Pilot Program acting director Peter Mitchell resigned.</font></p>
      <p align="JUSTIFY"><font size="3">Ultimately. the Florida state legislature 
        reduced anti-tobacco spending from $70 million to $32 million, forcing 
        the reassignment of 11 of the 31 tobacco fighters to other jobs in the 
        Florida Department of Health. The Truth Campaign continues, but it has 
        been slightly toned down. The Florida anti-tobacco budget has since risen 
        to $39 million, and Gov. Jeb Bush has praised the state&#146;s anti-tobacco 
        efforts.</font></p>
      <p align="left"><font size="3"><i>National Controversy</i></font></p>
      <p align="JUSTIFY"><font size="3">The American Legacy Foundation has taken 
        Florida&#146;s advertising effort &#151; and all its problems &#151; and 
        duplicated them on a national scale.</font></p>
      <p align="JUSTIFY"><font size="3">In January, the foundation submitted storyboards 
        to the major networks for proposed commercials. All were initially rejected. 
        One of them was a version of the infamous Florida &quot;Demon Awards&quot; 
        spot. Another, according to American Legacy Foundation president Cheryl 
        Healton, was turned down because the ad used a product name &quot;that 
        sounded too much like Clorox.&quot; A third rejected spot was a parody 
        of an acne cream ad where a troubled teenager applied the cream to his 
        face, causing severe burns, according to <i>Adweek</i>. The cream was 
        portrayed as analogous to tobacco&#146;s harmful effects.</font></p>
      <p align="JUSTIFY"><font size="3">But particularly controversial were two 
        spots filmed outside Philip Morris corporate headquarters in New York 
        City. In one, a young actress tries to enter the building with a large 
        suitcase labeled &quot;LIE DETECTOR.&quot; She asks to meet with Philip 
        Morris marketers, only to be escorted out by security guards. A second 
        spot showed teenagers unloading hundreds of body bags outside the building, 
        when an actor yells, &quot;Do you know how many people tobacco kills every 
        day?&quot;</font></p>
      <p><font size="3">Phillip Morris protested these advertisements and accompanying 
        material on the Web (www.thetruth.org), citing the tobacco settlement&#146;s 
        anti-vilification clause. The foundation&#146;s first response was to 
        remove Philip Morris&#146;s corporate logo from the spots.</font></p>
      <p align="JUSTIFY"><font size="3">But that was not enough for Michael F. 
        Easley, Democratic Attorney General of North Carolina. According to the 
        <i>Washington Post</i>, in February Easley wrote a letter to American 
        Legacy board chairman Christine Gregoire, the Democratic Attorney General 
        of Washington State, reminding her that the foundation was created to 
        produce &quot;anti-smoking and health-related ads, and not for ads designed 
        to vilify the tobacco companies.&quot; If the foundation did not withdraw 
        the Philip Morris spots, Easley warned, &quot;continued funding of the 
        very important anti-youth smoking goals&quot; of the foundation would 
        be jeopardized.</font></p>
      <p align="JUSTIFY"><font size="3">Three days later, in a perverse victory 
        for donor intent, Gregoire ordered the Philip Morris spots withdrawn. 
        Anti-tobacco activists were furious.</font></p>
      <p align="JUSTIFY"><font size="3">&quot;How can you run an anti-smoking 
        campaign and not vilify the industry?&quot; former Food and Drug Administration 
        head David Kessler asked the <i>Washington Post</i>. &quot;It would be 
        better not to take the money if the industry is able to pull the strings 
        and take control.&quot;</font></p>
      <p align="JUSTIFY"><font size="3">&quot;I think the Legacy Foundation has 
        basically destroyed itself,&quot; added Stanton Glantz, a veteran anti-tobacco 
        activist who teaches at the University of California-San Francisco.</font></p>
      <p align="JUSTIFY"><font size="3">The foundation&#146;s Truth Campaign continues. 
        But executive vice president Charles Wolfe resigned from the foundation 
        in May, issuing a public statement that he wanted &quot;to move on to 
        the next challenge.&quot; He then refused to speak to the press.</font></p>
      <p align="JUSTIFY"><font size="3">Will the remaining ads persuade teenagers 
        not to smoke? Most of the ads that have aired on the major networks rely 
        on statistics, citing the number of chemicals in cigarette smoke or the 
        one out of three smokers who eventually die from their habit.</font></p>
      <p align="JUSTIFY"><i><font size="3">Advertising Age</font></i><font size="3"> 
        columnist Bob Garfield doesn&#146;t believe these ads are persuasive: 
        &quot;The bad thing about these spots is that the message is sadly unimpressive,&quot; 
        Garfield wrote. &quot;&#145;Tobacco kills&#146; has been proved again 
        and again to be unmotivating for the adolescent audience that (a) defies 
        authority and (b) imagines itself invulnerable. What does impress teenagers 
        is a credible appeal to their vanity &#151; i.e., tobacco makes you smell, 
        tobacco makes your teeth yellow, smoke repulses the opposite sex, cancer 
        destroys beauty and so on.&quot;</font></p>
      <p align="left"><font size="3"><i>One-Sided War</i></font></p>
      <p align="JUSTIFY"><font size="3">In May, the American Legacy Foundation 
        launched another advertising-related attack on the tobacco industry, but 
        this time it was to silence its adversaries. Under the 1998 tobacco settlement, 
        the participating tobacco companies were barred from directing advertising 
        campaigns at teenagers. The tobacco firms also voluntarily pledged not 
        to advertise in magazines that had more than 15 percent of subscribers 
        under the age of 18.</font></p>
      <p align="JUSTIFY"><font size="3">American Legacy charged that tobacco advertising 
        in magazines read by teenagers &#151; such as <i>Sports Illustrated</i>, 
        <i>Vibe</i>, <i>Elle</i>, <i>Rolling Stone</i> and <i>Hot Rod</i> &#151; 
        had increased since the 1998 settlement, and that the top ten tobacco 
        brands all advertised in these magazines. The two brands most liked by 
        teenagers &#151; Winston and Marlboro &#151; purchased enough advertisements 
        so that 86 percent of teenage readers saw an advertisement for one of 
        these brands five or more times, American Legacy said.</font></p>
      <p align="JUSTIFY"><font size="3">Three of the foundation&#146;s nonprofit 
        allies &#151; the American Cancer Society, the American Lung Association 
        and the Campaign for Tobacco-Free Kids &#151; demanded that Congress restore 
        the Food and Drug Administration&#146;s power to regulate tobacco, which 
        the Supreme Court had declared unconstitutional. The nonprofits also requested 
        funding for the Department of Justice to launch a national suit against 
        the tobacco industry. The American Legacy study, said American Cancer 
        Society CEO John S. Seffrin, underscored &quot;the need for Congress to 
        pass strong and meaningful regulation over tobacco products.&quot;</font></p>
      <p align="JUSTIFY"><font size="3">Congress has not met the demands, but 
        the campaign successfully bullied the largest U.S. tobacco company into 
        accepting voluntary restrictions. Last month, Philip Morris announced 
        that in October it would eliminate advertising in 42 magazines with a 
        significant teenage readership. The company spent $130.6 million for advertising 
        in these magazines in 1999 &#151; more than a quarter of all cigarette 
        ad spending in U.S. magazines. The publications likely to suffer most 
        from the pullout are <i>Sports Illustrated</i> (which will lose $20.9 
        million in advertising revenue), <i>People</i> ($17.5 million) and <i>Entertainment 
        Weekly</i> ($11.9 million), according to Inside.com. Other publications 
        affected include <i>Newsweek</i>, <i>Spin</i>, <i>TV Guide</i>, <i>Vogue</i> 
        and <i>Glamour</i>.</font></p>
      <p align="left"><font size="3"><i>A Barrage of Advertising</i></font></p>
      <p align="JUSTIFY"><font size="3">The American Legacy Foundation is, by 
        far, the largest anti-tobacco advertiser in the U.S. But it has helped 
        to inspire the advertising campaigns of other nonprofits and some states. 
        Since these organizations are not bound by the anti-vilification restrictions 
        of the 1998 tobacco settlement, they often create ads that are even more 
        controversial than American Legacy&#146;s commercials.</font></p>
      <p align="JUSTIFY"><font size="3">The Partnership for a Healthy Mississippi, 
        a nonprofit coalition funded by that state&#146;s share of the tobacco 
        settlement, provided $12.5 million to the Jackson, Mississippi advertising 
        agency Maris West &amp; Baker. The agency, according to <i>Advertising 
        Age</i> reporter Ira Teinowitz, decided to reach out to animal rights 
        sympathizers. The agency produced a commercial featuring &quot;Frances, 
        the Lonely Lab Monkey,&quot; who is forced to inhale nicotine as white-smocked 
        corporate tobacco researchers gleefully watch the agonized animal suffer.</font></p>
      <p><font size="3">Anti-tobacco activists have also taken over billboards 
        under a clause of the tobacco settlement that bans billboard advertising 
        by cigarette companies but requires the tobacco companies to pay for anti-smoking 
        advertisements. In Ohio, Republican Attorney General Betty Montgomery 
        took over 343 billboards in that state in April 1999 and placed ads showing 
        a teenage smoker with the caption, &quot;Welcome to LOSERVILLE. Population 
        YOU.&quot;</font></p>
      <p align="JUSTIFY"><font size="3">The Ohio campaign was attacked by a coalition 
        of 30 children&#146;s nonprofits in the Cleveland area, who charged that 
        the ads might damage children&#146;s self-esteem. Other Clevelanders thought 
        that travellers might assume that their cities were &quot;Loservilles,&quot; 
        and were particularly irritated by one ad that greeted passengers at the 
        Cleveland airport, reported the <i>Cleveland Plain Dealer</i>. Montgomery 
        vowed that the ads &#151; developed in collaboration by the state, the 
        American Lung Association, the American Cancer Society and the Ohio Medical 
        Association &#151; would continue until the billboard leases expired.</font></p>
      <p align="left"><font size="3"><i>Who Benefits?</i></font></p>
      <p align="JUSTIFY"><font size="3">But with all this money being poured into 
        anti-tobacco advertising, what&#146;s the evidence that these ad campaigns 
        are persuading teens to stop smoking?</font></p>
      <p align="JUSTIFY"><font size="3">Anti-tobacco activists point to two studies 
        published in March. Under grants from the state of Massachusetts and the 
        Robert Wood Johnson Foundation, Michael Siegel of Boston University and 
        Lois Biener of the University of Massachusetts-Boston surveyed 618 Massachusetts 
        teenagers in 1993, when the state began a massive anti-smoking campaign, 
        and in 1997. They found some evidence that youths aged 12 to 13 when the 
        campaign began were less likely to smoke four years later.</font></p>
      <p align="JUSTIFY"><font size="3">Writing in the <i>American Journal of 
        Public Health</i>, Siegel and Biener noted that there were many limits 
        to Massachusetts&#146;s ability to persuade teenagers not to smoke. They 
        found no evidence that youths aged 14-15 when the advertisements began 
        reduced their smoking. Nor did they find any evidence that anti-smoking 
        billboards, radio commercials or magazine advertisements influenced teenagers. 
        Moreover, Siegel and Biener observed that Massachusetts&#146;s expenditure 
        of $50 million (or $8 per teenager) on the anti-tobacco campaign was &quot;particularly 
        high,&quot; and &quot;one would not expect less intense campaigns to have 
        the same effect.&quot; Finally, Siegel and Biener wrote that a factor 
        they didn&#146;t consider, an &quot;unknown confounder... could explain 
        the observed association between exposure to television advertisements 
        and reduced rates of progression to established smoking.&quot;</font></p>
      <p align="JUSTIFY"><font size="3">A second study, conducted by the Florida 
        Department of Health and four other Florida agencies, surveyed middle 
        and high school students in that state. The 2000 edition of the <i>Florida 
        Youth Tobacco Survey</i>, released in March, found that two years after 
        the Truth Campaign began, the percentage of middle schoolers who had smoked 
        a cigarette in the past 30 days had fallen from 18.5 percent in 1998 to 
        8.6 percent in 2000. The percentage of high school students who had smoked 
        a cigarette during that period fell from 27.4 percent to 20.9 percent. 
        These declines, the survey reported, resulted in &quot;79,760 fewer Florida 
        youth smokers in 2000 compared to 1998, and approximately 26,320 fewer 
        premature deaths attributable to smoking &#151; if these youths had become 
        and remained regular smokers.&quot;</font></p>
      <p align="JUSTIFY"><font size="3">But was the Truth Campaign responsible 
        for the decline in youth smoking &#151; assuming the decline is real? 
        It&#146;s illegal in Florida for minors to purchase tobacco. An important 
        part of the state&#146;s tobacco-fighting effort includes increased sanctions 
        against teen smoking, including tickets for teens caught smoking at school 
        and suspension of drivers licenses for teenagers caught with cigarettes 
        in their cars. </font></p>
      <p align="JUSTIFY"><font size="3">Given these sanctions, why should teenagers 
        honestly tell representatives of the Florida government about their smoking 
        habits? The Florida researchers did not actually observe teenagers smoke. 
        They asked teens to report on their own tobacco use. As Florida state 
        representative Debby Sanderson (R), a leading critic of the Truth Campaign, 
        told the <i>Washington Post</i>, &quot;people don&#146;t always tell the 
        truth&quot; when filling out surveys.</font></p>
      <p align="JUSTIFY"><font size="3">It cannot be assumed that the connection 
        between advertising and teenage tobacco use is strong. In his book <i>Fear 
        of Persuasion</i>, American Enterprise Institute resident scholar John 
        Calfee studied all the available evidence about teenagers and smoking 
        and concluded that teenagers start smoking, not because of commercials, 
        but because of peer pressure. At best, Calfee explains, advertising can 
        persuade teens to switch brands, but not to start smoking.</font></p>
      <p align="JUSTIFY"> <font
    size="2"></font><font size="3">&quot;Teens greet tobacco and alcohol advertising 
        with pretty much the same skepticism of advertisers&#146; motives that 
        they and their parents bring to advertising generally,&quot; Calfee writes. 
        &quot;We know that if advertising is to have even a chance at exerting 
        a profound effect on the most essential decisions made by youth, it is 
        going to have to work very hard, and even then it will face little hope 
        of success.&quot;</font></p>
      <p align="JUSTIFY"><font size="3">So if tobacco advertising doesn&#146;t 
        persuade teens to smoke, we can hardly conclude that anti-smoking campaigns 
        persuade smokers to give up the habit. All this raises questions about 
        the American Legacy Foundation and whether it will use its tobacco billions 
        to successfully reduce teenage tobacco use.</font></p>
      <p align="JUSTIFY"><font size="3">Far more likely, the foundation&#146;s 
        ultimate legacy will be a massive transfer of wealth from tobacco consumers 
        and the retail market to well-to-do foundation officials and advertising 
        executives. <img src="../images/esr.jpg" width="24" height="13"></font></p>
      <p align="JUSTIFY"><i><font size="3">Martin Morse Wooster is a visiting 
        fellow at Capital Research Center. His new book, Return to Charity? Philanthropy 
        and the Welfare State, is available from CRC for $10.00. To order, send 
        a pre-paid check to CRC, or call 1-800-459-3950 to order by credit card.</font></i> 
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