Altria Sues U.S. to Keep 'Black & Mild' Cigar Name
May 26 2016 - 1:50PM
Dow Jones News
U.S. tobacco giant Altria Group Inc. sued federal health
regulators Thursday in a bid to keep using the Black & Mild
brand name for its popular cigars.
The Federal Drug Administration expanded its oversight of
tobacco products earlier this month, including implementing a new
rule banning the use of "mild" for cigars because the term suggests
such products are safer than others.
In a civil complaint filed with United States District Court for
the District of Columbia, Altria argued the use of the word "mild'"
in Black & Mild doesn't convey anything about health, risk or
safety. Rather, the term describes "taste and body."
Altria says the FDA rule violates the First Amendment that
protects trademarks and brand names, in addition to the Fifth
Amendment that prohibits taking private property for public use
without compensation.
The FDA declined to comment on the lawsuit, which seeks
declaratory and injunctive relief.
Tobacco companies already are banned from using the terms
"mild," "light" and "low" to market cigarettes. That includes
Marlboro, the top-selling U.S. cigarette brand owned by Altria.
Altria says it paid $2.9 billion in 2007 to acquire John
Middleton Co.'s cigar and pipe business, including the Black &
Mild brand. It says the brand name has been in use for more than 40
years.
Altria controls roughly half of the U.S. tobacco market. It sold
1.3 billion Black & Mild cigars last year.
Write to Mike Esterl at mike.esterl@wsj.com
(END) Dow Jones Newswires
May 26, 2016 13:35 ET (17:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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