UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
GENERAL CIGAR HOLDINGS, INC., a corporation.
The Federal Trade Commission, having reason to believe that General Cigar Holdings,
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 General Cigar Holdings, Inc., is a
Delaware corporation with its principal office or place of business at 387 Park Avenue South, New York, NY 10016-8899.
- 2. Respondent has manufactured, advertised, labeled, offered for sale, sold, and
distributed products to the public, including cigars.
- 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
- 4. In its advertising, labeling, and sale of cigars, respondent has failed to disclose
that regular cigar smoking can cause several serious adverse health conditions including,
but not limited to, cancers of the mouth (oral cavity), throat (esophagus and larynx), and
lungs. These facts would be material to consumers in their purchase and use of the
product. Respondent's failure to disclose these facts has caused or is likely to cause
substantial injury to consumers that is not outweighed by countervailing benefits to
consumers or competition and is not reasonably avoidable by consumers. Therefore, the
failure to disclose these facts was, and is, an unfair or deceptive practice.
- 5. 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 of the
Federal Trade Commission Act.
THEREFORE, the Federal Trade Commission this day of , 2000, has issued this complaint
By the Commission.
Donald S. Clark