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Econwatch - CBS News Jump to full article: CBS, 2009-06-11 Author: Posted by Brian Montopoli
Intro: You might expect tobacco companies to oppose the legislation, and you wouldn't be wrong: Lorillard Inc., the third-largest tobacco manufacturer, issued a statement saying "Congress should not be burdening the FDA with a new responsibility over a multibillion-dollar industry when it is failing presently to preserve its core mission."
But the largest tobacco manufacturer in the country, Philip Morris USA - a division of Altria Inc. and the home of the popular Marlboro brand - largely supports the bill. The company's spokesperson, Bill Phelps, told NPR it "will create a framework for the pursuit of tobacco products that are less harmful than conventional cigarettes."
Lorillard, Reynolds American Inc. and other tobacco companies have an explanation for why Philip Morris is supporting a bill that would mean stronger regulations on its products: They say the legislation will pave the way for the company to cement its dominant position in the market, because the regulations will make it harder for companies to market smaller brands or introduce new products.
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