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 The letter was prompted by a Reuters investigation last month that
revealed how Philip Morris was deploying marketing tactics in India,
some targeting young people, that officials said were illegal.
(http://reut.rs/2uuye5Y)
The letter cites the Reuters story in the opening paragraph, listing
Philip Morris' marketing methods as outlined in the article,
including cigarette advertisements at kiosks, the free distribution
of Marlboro smokes at nightclubs and bars, and the use of TV screens
to promote the world's best-selling cigarette brand at these events.
These promotional activities are a violation of the country's
tobacco control law and are subject to punishment under the act,
says the letter, dated Aug. 10.
"You are requested to clarify your position and to show cause why
appropriate punitive action be not initiated against the company and
its directors," the letter continues.
Such infractions can carry a fine of up to 1,000 rupees (about $15)
and a sentence of up to two years in prison for the first
conviction, according to the Cigarettes and Other Tobacco Products
Act.
The India unit of Philip Morris International did not respond to
questions from Reuters.
The health ministry also sent a letter to ITC Ltd, India's leading
cigarette maker, which Reuters also reported last month was using
some of the same promotional methods as Philip Morris, such as point
of sale displays. In its letter to ITC, the health ministry said the
company's advertisements at kiosks were illegal.
"Advertisement other than listing type of tobacco products
available, whether displayed inside or outside the shop is
prohibited and attracts punishment," the ministry said. It also
called on ITC to explain why "punitive action" should not be taken
against the company.
ITC did not respond to questions.
TARGETING YOUNG INDIANS
Indian officials have repeatedly said that tobacco advertisements
that use brand names, pack images or promotional messages are banned
at kiosks - inside and outside. Philip Morris and ITC have said they
are in compliance with tobacco control regulations and that the law
allows advertising inside a kiosk.
Philip Morris' marketing strategy for India is laid out in hundreds
of pages of internal documents that cover the period from 2009 to
2016. A key goal, according to the documents, is "winning the hearts
and minds of LA-24" – people between legal age, 18, and 24. The
documents can be viewed in a searchable repository, The Philip
Morris Files, published by Reuters. (http://reut.rs/2sT51xF)
[to top of second column] |
The tobacco shop displays and the distribution of cigarettes at
events attended by young people have helped to more than quadruple
Marlboro's market share in India, where Philip Morris is battling to
win ground from ITC, which dominates the industry.
India, with a population of 1.3 billion, has about 100 million
smokers. Tobacco use kills more than 900,000 people a year,
according to government data.
Since October last year, the state government in India's capital New
Delhi has sent at least four letters to Philip Morris and at least
three to ITC telling them to remove their advertisements at kiosks.
Indian officials say tobacco companies get away with violations of
anti-smoking regulations because law enforcement is weak.
The health ministry also instructed state governments this month to
move against cigarette advertising at kiosks, as well as the
distribution of free cigarettes. The ministry requested that states
submit a progress report on their actions.
Following the Reuters story, Delhi state tobacco control chief S. K.
Arora said he quizzed Philip Morris about the distribution of free
cigarettes. In internal documents, Philip Morris calls distribution
of free cigarettes "sampling" and says it is allowed under the law
in India. The company has spent millions of dollars promoting its
Marlboro brand at social events, the documents show.
At several parties attended by Reuters reporters in Delhi over the
past year, young women dressed in the colors of the latest Marlboro
variant handed out free packs of cigarettes after asking people for
their name, age and preferred brand.
In recent weeks, Arora said he had detected a decline in the number
of cigarette ads at kiosks in Delhi. Since the Reuters article last
month, some Philip Morris ads have disappeared from several tobacco
shops in Mumbai.
($1 = 64.1100 Indian rupees)
(Additional reporting by Abhirup Roy in Mumbai; Editing by Peter
Hirschberg)
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