120.  Alternative Cigarettes, Inc., Dkt No. C-3956 (April 2000)

Respondents: Alternative Cigarettes, Inc., and Joseph Pandolfino

Type:  Deceptive Health Claims & Alternative Cigarettes

Alternative Cigarettes marketed "Pure" and "Gold" tobacco cigarettes, as well as "Herbal Gold" and "Magic" herbal cigarettes through a Web site at www.altcigs.com and through other media.  The FTC alleged that the company’s advertisements implied, without a reasonable basis, that their tobacco-containing cigarettes were safer to smoke than other cigarettes because they contain no additives. The Commission also alleged that the company falsely implied that smoking its herbal cigarettes did not pose the health risks associated with smoking tobacco cigarettes.

Under a settlement finalized on June 14, 2000, the company agreed to disclose prominently in future ads making a "no additives" claim: "No additives in our tobacco does NOT mean a safer cigarette." It also agreed to disclose prominently on packages and in ads for herbal cigarettes that:  "Herbal cigarettes are dangerous to your health. They produce tar and carbon monoxide."