Regulators Eye Crackdown On Rising Use Of Tobacco Discounts

Law360, New York (May 22, 2013, 9:06 PM EDT) -- Tobacco companies are relying more on pricing discounts to sell cigarettes, the Federal Trade Commission reported Tuesday, a practice experts say may be the next target of regulators and lawmakers under increasing pressure from public health advocates to curb the industry's favorite marketing tactic.

The FTC released a report showing that spending on tobacco marketing rose in 2011 for the first time in nearly a decade, mostly because of an increase in discounts. Tobacco companies spent $7.8 billion on discounts and promotional allowances to wholesalers and...
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