A California appeals court last week severely restricted cigarette companies from conducting outdoor advertising campaigns.
R.J Reynolds was found to have violated the terms of the 1998 tobacco litigation Master Settlement Agreement with its plans to conduct a year-long nationwide billboard campaign at a variety of venues for its popular NASCAR Winston Cup Series.
The 1998 settlement prohibited billboard ads for cigarettes but allowed brief outdoor ad campaigns-a 100-day window around one event-to promote cultural and sporting events. It was aimed at preventing companies from targeting tobacco ads at children and teens.
Reynolds argued that the series is one event-taking place at a number of venues-that begins in February and ends in November. The court found that Reynolds could put up billboards at Sears Point in California 90 days prior to and 10 days after a local race.
The tobacco company said yesterday that it has not had ample time to review the courts findings but released a statement that read in part: “The company continues to believe that the posting of sponsorship signs-which simply say ‘NASCAR Winston Cup Series’-at tracks in California that host NASCAR series events fully complies with the master settlement agreement. Given that the NASCAR schedule begins in February and ends in November, Reynolds Tobacco’s yearlong placement of sponsorship signs complies with the MSA.”
R.J. Reynolds agreed to a five-year contract with NASCAR in July 2002, continuing a more than 30-year relationship with the racing series, David Howard, a spokesperson for Reynolds, said yesterday.
The decision could force Reynolds to reevaluate its financial support of racing-a figure put at about $40 million per year, according to news reports.
Reynolds, through its Winston cigarette brand, has long supported NASCAR stock car racing. The case was heard in the Fourth District Court of appeal in San Diego.
Separate suits were brought against Reynolds by the Attorneys Generals of California, Arizona, New York and Washington. In Washington, R.J. Reynolds is no longer sponsoring the Winston West racing series so all of that signage has been taken down, Howard said.
The New York case was dismissed in February 2002 and the Arizona suit remains on appeal.
