9923026

UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION

In the Matter of

SANTA FE NATURAL TOBACCO COMPANY, INC. a corporation.

DOCKET NO. C-3952
COMPLAINT

The Federal Trade Commission, having reason to believe that Santa Fe Natural Tobacco Company, Inc., a corporation ("respondent"), has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges:

1. Respondent Santa Fe Natural Tobacco Company, Inc. is a New Mexico corporation with its principal office or place of business at 1368 Cerrillos Road, Santa Fe, NM 87505-3507.

 

2. Respondent has advertised, promoted, offered for sale, sold and distributed cigarettes, including Natural American Spirit tobacco cigarettes and Natural American Spirit herbal cigarettes.

 

3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act.

 

4. Respondent disseminated or caused to be disseminated advertisements for Natural American Spirit tobacco cigarettes, including but not necessarily limited to the attached Exhibits A through C. These advertisements contain the following statements:

 

(A) "If you use tobacco the way Native Americans intended ...or if you smoke out of choice rather than habit ... Here is an alternative you should try.

 

100% FREE OF CHEMICAL ADDITIVES
NATURAL TOBACCO AND CIGARETTES

 

[Depiction of Natural American Spirit cigarettes]

 

Made from 100% Chemical-Additive-Free, Whole Leaf, Natural Tobacco and nothing else."

 

(Exhibit A, June - August 1997 magazine advertisement) (emphasis in original).

 

(B) "If you smoke because you enjoy smoking, Natural American Spirit is the natural tobacco alternative you should try.

 

Natural American Spirit cigarettes are made from 100% chemical-additive-free, natural tobacco ... and nothing else."

 

(Exhibit B, Fall 1997 magazine advertisement).

 

(C) "100% Chemical-Additive-Free

Whole Leaf, Natural Tobacco Products"

 

(Exhibit C, Winter 1996 - 97 magazine advertisement).

 

5. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that smoking Natural American Spirit tobacco cigarettes, because they contain no additives or chemicals, is less hazardous to a smoker's health than smoking otherwise comparable cigarettes that contain additives or chemicals.

6. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that it possessed and relied upon a reasonable basis that substantiated the representation set forth in Paragraph 5, at the time the representation was made.

 

7. In truth and in fact, respondent did not possess and rely upon a reasonable basis that substantiated the representation set forth in Paragraph 5, at the time the representation was made. Among other reasons, the smoke from Natural American Spirit tobacco cigarettes, like the smoke from all cigarettes, contains numerous carcinogens and toxins, including tar and carbon monoxide. Therefore, the representation set forth in Paragraph 6 was, and is, false or misleading.

8. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act.

THEREFORE, the Federal Trade Commission this twelfth day of June, 2000, has issued this complaint against respondent.

By the Commission.

Donald S. Clark
Secretary

SEAL: