A subsidiary of Reynolds American Inc. has agreed to alter its marketing to specify that organic tobacco does not provide safer tobacco or cigarettes for smokers.
The settlement agreement involving Santa Fe Natural Tobacco Co. and the attorneys general of 33 states, including North Carolina, took effect Monday.
Santa Fe sells Natural American Spirit cigarettes and organic tobacco for roll-your-own tobacco users. Two cigarette styles -- "light mellow taste" and "regular full-bodied taste" are listed on the pack as being made with 100 percent organic tobacco.
On its Web site, Santa Fe already has a disclaimer similar in size to the surgeon general's warning. The disclaimer reads "no additives in our tobacco does not mean a safer cigarette."
The disclaimers substitute "organic tobacco" in the place of "no additives."
Edmund Brown Jr., the attorney general for California, said that the states were concerned that Santa Fe's advertising may have been misleading consumers into believing that its organic products were less harmful than other tobacco products.
"There is currently no competent or reliable scientific evidence to support this conclusion," the attorneys general said in the agreement.
The attorneys general had considered taking legal action because they felt the advertising may have been in violation of the Master Settlement Agreement.
"Stamping an organic label on tobacco products is ultimately a distinction without a difference," Brown said. "Organic or not, cigarettes are bad for your health."
Santa Fe said it agreed to make the changes even though "we believe our advertising is, and has been, truthful and not misleading." The agreement states that the settlement is not an admission by Santa Fe that it has violated the MSA.
Santa Fe said that its organic tobacco is certified through the National Organic Program of the U.S. Department of Agriculture. Certified organic tobacco is grown without the use of pesticides and fertilizers prohibited under the program. The agreement allows it to continue to advertise its tobacco as organic or 100 percent organic.
"We came to an amicable agreement, and there was no fine involved," said Alexandra Pratt, a spokeswoman for Santa Fe. "It made sense to make the agreement, which adds more clarity, which is what the California attorney general wanted."
Santa Fe said it is sending new marketing materials to distributors and retailers. They have to be in place by March 23.
rcraver@wsjournal.com
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