FTC Cigarette and Smokeless Tobacco Data Collection

DRAFT
OMB Control No.[insert]
Expires [insert].1
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
COMMISSIONERS:

William E. Kovacic, Chairman
Pamela Jones Harbour
Jon Leibowitz
J. Thomas Rosch

File No. [insert]
ORDER TO FILE SPECIAL REPORT
Pursuant to a resolution of the Federal Trade Commission dated [insert], entitled
“Resolution Directing Use of Compulsory Process,” a copy of which is enclosed, Company A is
ordered to file a Special Report with the Commission not later than [90 days after issuance],
containing the information specified herein. Much of the information requested for this report is to
be filed electronically.
Your report is required to be subscribed and sworn to by an official of Company A who has
prepared or supervised the preparation of the report from books, records, correspondence, and
other data and material in your possession. If any question cannot be answered fully, give such
information as is available to you and explain how and why your answer is incomplete.
Please supply written answers to each of the following twelve questions:
1.

The subscriber to your report is to give his or her full name and business address
and state his or her official capacity.

2.

State the full name of Company A, its official address, and its date and state of
incorporation.

3.

State whether Company A is a subsidiary company; and if so, identify the full name
and official address of its ultimate parent company.2

1

For your information, under the Paperwork Reduction Act, as amended, an agency
may not conduct or sponsor, and a person is not required to respond to, a collection of
information unless it displays a currently valid OMB control number. For this information
request, that number is [insert].
2

For the purposes of this Order, the term “subsidiary company” shall mean a company
that is controlled by another entity; the term “parent company” shall mean an entity that controls

4.

5.

A.

If Company A is a subsidiary company, identify all other direct and indirect
subsidiary companies of Company A’s ultimate parent company, and for
each such subsidiary company: (1) provide its full name and address; (2)
identify its direct parent company and all of its direct subsidiary companies;
and (3) state whether it has any involvement in the manufacturing, labeling,
advertising, promotion, marketing, development, offering for sale, sale, or
distribution of cigarettes.

B.

If Company A is not a subsidiary company, identify all of Company A’s
direct and indirect subsidiary companies, and for each such subsidiary
company: (1) provide its full name and address; (2) identify its direct parent
company and all of its direct subsidiary companies; and (3) state whether it
has any involvement in the manufacturing, labeling, advertising, promotion,
marketing, development, offering for sale, sale, or distribution of cigarettes.

Report the net (i.e., after accounting for returns) number of cigarettes sold in the
United States by “the Company” during calendar year ____.3 This includes

another company; and the term “ultimate parent company” shall mean the highest level parent
company that is not controlled by another entity.
Furthermore, for purposes of this Order, the term “control” (as used in the terms
“control(s)” and “controlled”) shall mean either holding 50 percent or more of the outstanding
voting securities of an issuer or in the case of an entity that has no outstanding voting securities,
having the right to 50 percent or more of the profits of the entity, or having the right in the event
of dissolution to 50 percent or more of the assets of the entity.
3

For the purposes of this Order, the term “the Company” shall mean: Company A; all
entities identified in response to Questions 3 and 4, above, that have any involvement in the
manufacturing, labeling, advertising, promotion, marketing, development, offering for sale, sale,
or distribution of cigarettes; and all other entities related through common ownership or common
governance that have any involvement in the manufacturing, labeling, advertising, promotion,
marketing, development, offering for sale, sale, or distribution of cigarettes. The term
“company” shall not, however, include any entity: (1) whose only involvement in the
manufacturing, labeling, advertising, promotion, marketing, development, offering for sale, sale,
or distribution of cigarettes is as a convenience store, supermarket, gas station, pharmacy, or
other retailer; (2) which sells cigarette products that are not manufactured or imported by the
company; and (3) for which sales of cigarettes products and cigarette related merchandise
constitute less than 25% of its total retail sales.
Furthermore, for the purposes of this Order, the term “United States,” when used in a
geographical sense, includes the 50 states, the District of Columbia, the Commonwealth of
Puerto Rico, and the United States territorial possessions (including Guam, the Virgin Islands,
American Samoa, Wake Island, Midway Islands, Kingman Reef, and Johnston Island).
2

cigarettes given for free to retailers for subsequent sale to consumers. Report unit
sales in number of cigarettes sold.
6.

Report the net (i.e., after accounting for returns) dollar value of cigarettes sold in the
United States by the Company during calendar year ____. Report dollar sales value
in whole dollars.

7.

Report the net (i.e., after accounting for returns) number of cigarettes given away in
the United States by the Company during calendar year ____. This should include
all cigarettes distributed for free whether through sampling, coupons for free
product, “buy 3 get 1 free” type offers, or otherwise, as long as such cigarettes were
not reported as sold in response to Question 5, above.4 Report units given away in
number of cigarettes given away.

8.

Report separately the dollar amount expended during calendar year ____ by the
Company on cigarette advertising, merchandising, or promotion in the United States
in each category specified in items 26 through 53 of the “Reportable Expenditures”
section of this Order.5 This request is in addition to the request for the electronic

In addition, for the purposes of this Order, the phrase “sold in the United States” shall
include all sales: (a) within the United States; (b) to members of the Armed Forces of the United
States located outside the United States; or (c) for delivery to a vessel or aircraft of the Armed
Forces of the United States, as supplies, for consumption beyond the jurisdiction of the internal
revenue laws of the United States.
4

For the purposes of this Order, the phrase “given away in the United States” shall
include all cigarettes given away: (a) within the United States; (b) to members of the Armed
Forces of the United States located outside the United States; or (c) for delivery to a vessel or
aircraft of the Armed Forces of the United States, as supplies, for consumption beyond the
jurisdiction of the internal revenue laws of the United States.
5

For the purposes of this Order, the term “advertising” refers to all activities relating to
cigarettes that are intended or likely to be seen or heard by members of the public, regardless of
whether they refer or relate to a brand or brands of cigarettes.
For the purposes of this Order, the term “cigarette advertising” does not refer to and
should not be construed to include: (a) company or divisional names, when used as such, other
than in an advertisement relating to cigarettes; (b) signs on factories, plants, warehouses and
other facilities related to the manufacture or storage of cigarettes; (c) corporate or financial
reports; (d) communications to security holders of the Company and to others who customarily
receive such communications; (e) employment advertising; or (f) advertisements directed to
youth or their parents that are intended to reduce youth smoking.
Furthermore, for the purposes of this Order, the phrase “advertising, merchandising, or
promotion in the United States” shall include all advertising, merchandising, or promotion: (a)
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“Cigarette Report Datafiles.”
9A.

State whether the Company or any other persons working for or on behalf of the
Company paid any money or compensation, or made any other contribution
(including, but not limited to, goods or services, including free cigarettes) in
connection with any production or filming of any motion picture(s) or television
show(s) during calendar year ____. If so, please state which show(s) or movie(s),
and the dollar value of each payment or contribution.

9B.

State whether the Company or any other persons working for or on behalf of the
Company paid any money or compensation, or made any other contribution
(including, but not limited to, goods or services, including free cigarettes) during
calendar year ____ to any individual, partnership or corporation engaged in the
business of product placement in motion pictures or television shows. If so, please
identify: the person who made the contribution; the recipient of the payment or
contribution; the nature and amount of the payment or contribution; and the name of
each and every motion picture or television show in which any of the Company’s
cigarette products or cigarette brand imagery appeared in return for such payment or
contribution.

9C.

State whether the Company or any other persons working for or on behalf of the
Company sought or solicited the appearance of any cigarette product or any
cigarette brand imagery in any motion picture(s) or television show(s) during
calendar year ____. If so, please state which show(s) or movie(s).

9D.

State whether the Company or any other persons working for or on behalf of the
Company granted approval or otherwise gave permission for the appearance of any
cigarette product or any cigarette brand imagery in any motion picture(s) or
television show(s) during calendar year ____. If so, please state which show(s) or
movie(s).

9E.

State whether the Company or any other persons working for or on behalf of the
Company sought or solicited the appearance of any cigarette product or any
cigarette brand imagery, or granted approval or otherwise gave permission for the
appearance of any cigarette product or any cigarette brand imagery, in any video
appearing on the Internet, including but not limited to sites providing user-generated
content, during calendar year ____.

10.

To the extent that such information is possessed by the Company or any other
persons working for or on behalf of the Company, identify each and every televised
event that was aired in calendar year ____ during which the name, logo, or an image
of any portion of the package of any brand or variety of cigarettes sold by the
Company appeared on television through televised coverage of sponsored events,

within the United States; or (b) to members of the Armed Forces of the United States.
4

teams, or individuals.
11A.

List all varieties of cigarettes that the Company first offered for sale in the United
States during calendar year ____.

11B.

List all varieties of cigarettes that the Company discontinued from sale in the United
States during calendar year ____.

12.

Report the dollar amount expended during calendar year ____ by the Company in
the United States on advertisements directed to youth or their parents that are
intended to reduce youth smoking.6

For each question 5 through 12, above, if the information responsive to the question exists only
within subsidiaries, it is permissible to submit separate reports from each subsidiary with
responsive information subscribed and sworn to by an official of each such subsidiary, who has
prepared or supervised the preparation of the report from books, records, correspondence, and
other data and material in its possession. In such case, an official of Company A must still submit
a report subscribing and swearing that the subsidiaries’ reports submitted constitute all relevant
information for the Company A and its subsidiaries, and that no contrary information exists. The
written report or reports may be submitted in either paper form or as a .pdf file. In either case, the
paper document(s) or the .pdf file(s) must include the signature(s) of the above-referenced
official(s) attesting to the accuracy of the Company’s report.
INSTRUCTIONS FOR COMPLETING THE CIGARETTE REPORT DATAFILES
The Commission requests that information be produced by the Company in a computer
readable format. The instructions below provide detailed information on how to complete each
field of the Cigarette Report Datafile. We have provided reference tables for each of the seven
descriptors fields used by the FTC to classify cigarette varieties, Fields 7-13. These tables are
based upon descriptors previously used by the Company and other companies to classify cigarettes.
Please refer to them when entering data.
This Order provides that sales data and certain other information are to be reported
separately for each variety of cigarettes7 produced by the Company. However, the Commission is
requesting that expenditures on cigarette advertising, merchandising, or promotion in the United
States be reported only at the brand level, rather than at the variety level. Therefore, each brand
6

For purposes of this Order, the term “youth” means persons younger than eighteen
years of age.
7

For purposes of this Order, the term “variety of cigarette” refers to cigarettes that could
have been differentiated by consumers according to any of the information reported in Fields 6
through 13 (brand name and marketing descriptors). Separate production runs, minor changes in
tar or nicotine and other minor modifications in any variety reported upon need not be reported
separately.
5

should have an “Overall brand” record for which you should: (a) complete Fields 1-4, 6, and 2653; and (b) leave empty Fields 5, 7-25, and 54-59. Each brand should also have a record for each
cigarette variety within the brand, for which you should: (a) complete Fields 1-25 and 54-59; and
(b) leave empty Fields 26-53.8
The Commission is also requesting that expenditures on cigarette advertising,
merchandising, or promotion in the United States that are not attributable to or in connection with
any specific brand of cigarettes be reported in a “Non-brand specific” record. For this “Non-brand
specific” record: (a) complete Fields 1-3, and 26-53; and (b) leave empty Fields 4-25 and 54-59.
Examples of such expenditures might include, among others, Category A expenses advertising or
promoting all cigarettes generally or all of the Company’s cigarettes but not any specific brand of
cigarettes, Category Q expenses, and Category W expenses.
The Commission uses Microsoft Access 2002 database software. It will also accept
database and spreadsheet data in the following formats: MS Excel, tab-delimited, or commadelimited.

EXPLANATION OF DATAFILE STRUCTURE:
Attachment A contains field names and field types for the Cigarette Report Datafile. Each
field is described below:

FIELD DEFINITIONS:
Each record contains fifty-nine fields of data. The first 5 fields in the file are used to create
an unique identifier for each variety of cigarette. Please note the field names (in CAPS) cited
below and use them as written for the Company’s submissions.
1.
YEAR (Year): Numeric field. Refers to the calendar year for which information is being
reported. Entered as ‘20XX’.
2.

COMPCODE (Company Code): Character field. Enter letter assigned for the Company:
Vector Group
Lorillard, Inc.
Altria Group
Reynolds American
Commonwealth Brands
Vibo Corporation

C
D
E
F
G
H

8

For example, a brand with one variety will have two records (an overall brand record
and a record specific to that one variety); a brand with 20 varieties will have 21 records (an
overall brand record and a record specific to each of the 20 varieties).
6

3.
BRANDNO (Brand number): Numeric field. Entered as values 01 to 99. Enter previously
assigned number for existing brands. If new brand or previously unassigned, assign the next
unused integer. For the “Non-brand specific” record, enter the value 99.
4.
VARIETY (Variety code): Numeric field. Entered as values 01 to 99. Enter previously
assigned number for existing brand varieties. If new variety or previously unassigned, assign the
next unused integer. For the “Overall brand” record, enter the value 99.
5.
NUM (Number per pack): Numeric field. Entered as 1, 2, or 3. Refers to the pack size in
which the variety is typically offered for sale (20=1, 25=2, All Other=3).
The next eight fields include the brand name and marketing / physical characteristics that
make the variety unique. These descriptors have been organized into specific fields for calendar
year ____ and placed in order to correspond with the format for cigarettes tested by the Tobacco
Industry Testing Laboratory (“TITL”). Please enter the descriptors in the appropriate fields.
Please enter all letters that appear in alpha-numeric character fields using only capital letters.
6.
BRAND-NAME (Brand name): Character field. Refers to the brand identified on the
cigarette pack or in advertising. If the product is a generic or private label cigarette, indicate
“GENERIC” and complete a separate record for each distinct variety. This field is 30 characters
long.
7.
CR-LENGTH (Marketing description of length): Character field. This field is eight
characters long and can contain a number or term.
8.
CR-FILTER (Marketing description of filter): Character field. This field is eight
characters long.
9.
CR-PACKAGE (Marketing description of packaging): Character field. This field is eight
characters long.
10.
CR-STRENGTH (Marketing description of cigarette taste/strength): Character field. This
field is eight characters long.
11.
CR-FLAVOR (Marketing description of cigarette flavoring): Character field. This field is
eight characters long.
12.
CR-STYLE (Marketing description of special attributes of a variety): Character field. This
field is eight characters long.
13.
CR-OTHER (Marketing descriptors not falling into standard categories): Character field.
This field is eight characters long.
The next three fields are used to record the net number of units of the variety that were
sold, the net number of units that were given away, and the dollar value of the net number of units
7

sold.
14.
VARUNITSSOLD (Variety units sold): Numeric field. Report one figure for the number
of cigarettes of this variety sold in the United States during calendar year ____, net of the number
of cigarettes of this variety that were returned. Include cigarettes given away to retailers for
subsequent sale to consumers. For the “Overall brand” record, leave this field blank.
15.
VARUNITSGIVEN (Variety units given away): Numeric field. Report one figure for the
number of cigarettes of this variety given away in the United States during calendar year ____, net
of the number of cigarettes of this variety that were returned. For the “Overall brand” record, leave
this field blank.
16.
VARSALES (Variety-sales): Numeric field. Report one figure for the dollar value of
cigarettes of this variety sold in the United States during calendar year ____, net of the value of
cigarettes of this variety that were returned. For the “Overall brand” record, leave this field blank.
17.

VARPERCENT (Variety unit sales percent): FTC calculated field value, enter 0 here.

18.
CIGLENGTH (Cigarette length in millimeters): Numeric field. Three digits. Enter
cigarette length in millimeters.
19.
FILCODE (Filter code): Character field. One character in length. Enter “F” for filtered or
“N” for non-filtered.
20.
FLAVOR (Flavoring): Character field. One character in length. Enter “M” for menthol,
“N” for non-flavored, “O” for other flavored.
21.
PACKTYPE (Packaging): Character field. One character in length. Enter “S” for softpack, “H” for hard-pack.
22.
LASTSOLD (If the variety was discontinued during the year, the date on which it was last
sold): Numeric Values as YYMMDD (no slashes).
The next three fields are used to record the tar, nicotine, and carbon monoxide yield of the
particular variety of cigarette. Where the variety was tested by the Tobacco Industry Testing
Laboratory, the TITL values will be used; where varieties were unavailable for TITL testing,
company data will be used. If neither TITL data nor company data are available, please leave
these fields blank. Please round tar and carbon monoxide figures to the nearest whole mg. Please
round nicotine figures to the nearest tenth mg.
23.

TAR (Tar): Numeric value, range 0 - 99.

24.

NICOTINE (Nicotine): Numeric value, range 0.0 - 9.9.

25.

CO (Carbon Monoxide): Numeric value, range 0 - 99.
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REPORTABLE EXPENDITURES:
The next twenty-eight fields are used to record advertising, merchandising, or promotion
expenditures in the United States for the specific categories requested by the FTC. Please provide
information for items 26 through 53 in thousands of dollars. Expenditures may be rounded to the
nearest thousand dollars. For example $1,234,567 should be reported as either 1234.567 or 1235,
not 1234567.
26.
CAT-A-EXP (Category-A Expenses): Newspaper advertising but excluding, if practicable,
those expenditures covered by Categories L through V, which should be reported in those
categories.
27.
CAT-B-EXP (Category-B Expenses): Magazine advertising but excluding, if practicable,
those expenditures covered by Categories L through V, which should be reported in those
categories.
28.
CAT-C-EXP (Category-C Expenses): Outdoor advertising but excluding, if practicable,
those expenditures covered by Category E or Categories L through V, which should be reported in
those categories. “Outdoor advertising” means (1) billboards, (2) signs and placards in arenas,
stadiums, and shopping malls, whether any of the foregoing are open air or enclosed, and (3) any
other advertisements placed outdoors regardless of their size, including those on cigarette retailer
property.
29.
CAT-D-EXP (Category-D Expenses): All expenditures for audio-visual or video
advertising on any medium of electronic communication not subject to the jurisdiction of the
Federal Communications Commission. This category includes, but is not limited to,
advertisements on: screens at motion picture theaters, television screens or monitors in residential
dwellings, as in certain televised programs and through video cassette or DVD entertainment
products; and television screens or monitors in commercial establishments, such as video arcades.
This category does not include expenditures for advertising on the Internet, which should be
reported in Categories W or X below.
30.
CAT-E-EXP (Category-E Expenses): Transit advertising but excluding, if practicable,
those expenditures covered by Categories L through V, which should be reported in those
categories. “Transit advertising” means advertising on or within private or public vehicles and all
advertisements placed at, on or within any bus stop, taxi stand, transportation waiting area, train
station, airport or any other transportation facility.
31.
CAT-F-EXP (Category-F Expenses): Direct mail advertising but excluding, if practicable,
those expenditures covered by Categories L through V or Category X, which should be reported in
those categories.
32.
CAT-G-EXP (Category-G Expenses): Point of sale advertising but excluding, if
practicable, those expenditures covered by Category C or Categories L through V, which should be
reported in those categories.
9

33.
CAT-H-EXP (Category-H Expenses): Price discounts paid to cigarette retailers or
wholesalers in order to reduce the price of cigarettes to consumers, including off-invoice discounts,
buy downs, voluntary price reductions, and trade programs, but excluding retail value added
expenditures for promotions involving free cigarettes (e.g., buy two, get one free) covered by
Category U and expenditures involving coupons covered by Category T, which should be reported
in those categories.
34.
CAT-I-EXP (Category-I Expenses): Promotional allowances paid to cigarette retailers in
order to facilitate the sale or placement of any cigarette, including payments for stocking, shelving,
displaying and merchandising brands, volume rebates, incentive payments, and the cost of
cigarettes given to retailers for free for subsequent sale to consumers, but excluding, if practicable,
those expenditures covered by Categories A through H, which should be reported in those
categories.
35.
CAT-J-EXP (Category-J Expenses): Promotional allowances paid to cigarette wholesalers
in order to facilitate the sale or placement of any cigarette, including payments for volume rebates,
incentive payments, value added services, promotional execution and satisfaction of reporting
requirements but excluding, if practicable, those expenditures covered by Categories A through I,
which should be reported in those categories.
36.
CAT-K-EXP (Category-K Expenses): Promotional allowances paid to any persons other
than retailers, wholesalers, and full-time company employees who are involved in the cigarette
distribution and sales process in order to facilitate the sale or placement of any cigarette but
excluding, if practicable, those expenditures covered by Categories A through J, which should be
reported in those categories.
37.
CAT-L-EXP (Category-L-Expenses): Sampling of cigarettes, including the costs of the
cigarettes themselves, all associated excise taxes and increased costs under the Master Settlement
Agreement, and the costs of organizing, promoting and conducting sampling. Sampling includes
the distribution of cigarettes for consumer testing or evaluation when consumers are able to smoke
the cigarettes outside of a facility owned or operated by the Company or its agents, but the cost of
actual clinical testing or market research associated with such cigarette distributions should not be
reported. Coupons distributed for free cigarettes, with no purchase or payment required to obtain
the coupons or cigarettes, should be reported in this category. When reporting expenses associated
with such coupons for free cigarettes, the value reported should include: (a) the total redemption
expense (including expenses for payments to retailers or vendors for processing) for such coupons
in the calendar year, as determined under Generally Accepted Accounting Principles; and (b) all
other costs associated with such coupons incurred in the calendar year, including but not limited to
costs associated with advertising, promotion, design, printing, and distribution.
38.
CAT-M-EXP (Category-M Expenses): All costs of distributing any item (other than
cigarettes, items the sole function of which is to advertise or promote cigarettes, or written or
electronic publications), whether distributed by sale, redemption of coupons, or otherwise, that
bears the name, logo, or an image of any portion of the package of any brand or variety of
cigarettes sold by the Company. The expenditures reported in this category shall be the net cost to
10

the Company, i.e., payments received from consumers for such items shall be deducted. Whenever
such activities are combined with cigarette sampling, the expenditures connected therewith shall be
reported solely in Category L. When such activities are combined with the sale of cigarettes, such
as when a non-cigarette item is blister-packed to a package or packages of cigarettes, the
expenditures connected therewith shall be reported solely in Category V.
39.
CAT-N-EXP (Category-N Expenses): All costs of distributing any item (other than
cigarettes, items the sole function of which is to advertise or promote cigarettes, or written or
electronic publications) in connection with the marketing or promotion of cigarettes, whether
distributed by sale, redemption of coupons, or otherwise, that does not bear the name, logo, or an
image of any portion of the package of any brand or variety of cigarettes sold by the Company.
The expenditures reported in this category shall be the net cost to the Company, i.e., payments
received from consumers for such items shall be deducted. Whenever such activities are combined
with cigarette sampling, the expenditures connected therewith shall be reported solely in Category
L. When such activities are combined with the sale of cigarettes, such as when a non-cigarette
item is blister-packed to a package or packages of cigarettes, the expenditures connected therewith
shall be reported solely in Category V.
40.
CAT-O-EXP (Category-O Expenses): Public entertainment events bearing or otherwise
displaying the name or logo or an image of any portion of the package of any of the Company’s
cigarettes or otherwise referring or relating to cigarettes, which take place in an adult-only facility.
For the purposes of this Order, the term “adult-only facility” means a facility or restricted area
(whether open-air or enclosed) where the operator ensures or has a reasonable basis to believe that
no underage person is present. A facility or restricted area need not be permanently restricted to
adults in order to constitute an adult-only facility, provided that the operator ensures or has a
reasonable basis to believe that no underage person is present during the event or time period in
question. Furthermore, for purposes of this Order, the term “underage” means younger than
eighteen years of age. This item includes all expenditures made by the Company in promoting
and/or sponsoring such events.
41.
CAT-P-EXP (Category-P Expenses): Public entertainment events (including but not
limited to concerts and sporting events) bearing or otherwise displaying the name, logo, or an
image of any portion of the package of any of the Company’s cigarettes or otherwise referring or
relating to cigarettes, which do not take place in an adult-only facility. This item includes all
expenditures made by the Company in promoting and/or sponsoring such events.
42.
CAT-Q-EXP (Category-Q Expenses): Public entertainment events (including but not
limited to concerts and sporting events) bearing or otherwise displaying the name of the Company
or any variation thereof but not bearing or otherwise displaying the name, logo, or an image of any
portion of the package of any of its cigarettes or otherwise referring or relating to cigarettes. This
item includes all expenditures made by the Company in promoting and/or sponsoring such events.
43.
CAT-R-EXP (Category-R Expenses): Endorsements, testimonials, and product placement.
This item includes but is not limited to all expenditures made to procure cigarette use, or to procure
the mention of a cigarette product or company name, or the appearance of a cigarette product or
11

name, logo, or package, in any situation (e.g., motion picture, television show or program, stage
show, public appearance by a celebrity) where such use, mention or appearance may come to the
attention of the public.
44.
CAT-S-EXP (Category-S Expenses): Sponsorship of sports teams or individual athletes
but excluding, if practicable, those expenditures covered by Category R, which should be reported
in that category. “Sports teams or individual athletes” includes but is not limited to competitors in
football, basketball, baseball, hockey, tennis, wrestling, karate, judo, weight lifting, volleyball,
skiing, skating, sailing, boating, equestrian, rodeo, automobile, race car, funny car, motorcycle,
bicycle, truck, monster truck, tractor-pull, fishing, and hunting events, competitions, tournaments,
and races.
45.
CAT-T-EXP (Category-T Expenses): All expenditures and costs associated with coupons
for the reduction of the retail cost of cigarettes (whether redeemed at the point of sale or by mail),
including: (a) the total redemption expense (including expenses for payments to retailers or
vendors for processing) for such coupons in the calendar year, as determined under Generally
Accepted Accounting Principles; and (b) all other costs associated with such coupons incurred in
the calendar year, including but not limited to costs associated with advertising, promotion, design,
printing, and distribution. Coupons distributed for free cigarettes, with no purchase or payment
required to obtain the coupons or cigarettes, should be reported in Category L. Redemption costs
should include any payments to retailers above the face value of the coupons.
46.
CAT-U-EXP (Category-U Expenses): Retail value added expenditures for promotions
involving free cigarettes (e.g., buy two, get one free), whether or not the free cigarettes are
physically bundled together with the purchased cigarettes, including all expenditures and costs
associated with the value added to the purchase of cigarettes (e.g., all associated excise taxes paid
on the free cigarettes and any increased costs under the Master Settlement Agreement resulting
from the distribution of the free cigarettes).
47.
CAT-V-EXP (Category-V Expenses): Retail value added expenditures for promotions
involving free non-cigarettes items (e.g., buy two, get a cigarette lighter) including all expenditures
and costs associated with the value added to the purchase of cigarettes.
48.
CAT-W-EXP (Category-W Expenses): All expenditures for advertising on any company
Internet web site that can be accessed by computers located in the United States, regardless of
where the site is located or the Internet address of the site or page.
49.
CAT-X-EXP (Category-X Expenses): All expenditures for advertising on the Internet,
other than on the Company’s own Internet web site, including but not limited to the World Wide
Web, commercial on-line services, and electronic mail messages. This category includes but is not
limited to: spending on all Internet sites and pages, hyperlinks and banners on third-party sites,
newsgroups, and on-line advertisements that can be accessed by computers located in the United
States, regardless of where the site is located or the Internet address of the site or page; all direct
mail advertising using electronic mail messages; and all sites and pages, hyperlinks and banners on
third-party sites, newsgroups, or electronic mail messages that include the name, logo, symbol,
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motto, or selling message of a brand of cigarettes, or are referred to in any other cigarette
advertisement, regardless of whether the site, page, hyperlink, banner, or electronic mail message
is promoting the sale of cigarettes. Expenditures include but are not limited to the cost of
developing, creating, maintaining, monitoring, and updating the site, page, banner, or other form of
on-line advertising, whether located on systems maintained by the Company or by third-party
advertisers, commercial online services, or Internet World Wide Web host providers.
50.
CAT-Y-EXP (Category-Y Expenses): All expenditures for telephone advertising. This
category includes but is not limited to costs associated with the placement of telemarketing calls or
the maintenance or operation of incoming telephone lines that allow consumers to participate in
any promotion or hear pre-recorded product messages, but excludes costs associated with having
customer service representatives available for responding to consumer complaints or questions.
51.
CAT-Z-EXP (Category-Z Expenses): Any advertising or promotional expenditures not
covered by another reporting category. Specify the total amount on the form and briefly describe
the specific subject matter of each such expenditure.
52.
TOT-ADV-EXP (Total Reportable Expenditures): Refers to reportable expenditures for the
variety as defined in the appropriate explanatory notes. The figure provided for total reportable
expenditures should equal the sum of the expenses listed in Categories A through Z for the variety.
53.
SPORTS-EXP (Sports and Sporting Events): The expenditures reported in this category
are intended to be duplicative of expenditures listed above on lines 26 through 51 and totaled on
line 52. Do not report any expenditures on this line that have not also been reported on lines 26
through 51. For example, sponsorship of a sporting event that is reported on line 41 or 42 would
also be reported on line 53; and a miscellaneous expenditure for sponsoring a sports or racing team
would be reported on lines 44 and 53. “Sports and sporting events” include but are not limited to
football, basketball, baseball, hockey, tennis, wrestling, karate, judo, weight lifting, volleyball,
skiing, skating, sailing, boating, equestrian, rodeo, automobile, race car, funny car, motorcycle,
bicycle, truck, monster truck, tractor-pull, fishing, and hunting events, competitions, tournaments,
and races.
Report all items that include but are not limited to all expenditures connected with or related to the
sponsoring, advertising, or promotion of sports or sporting events, including any racing or
automotive events, support of an individual, group, sports, or racing team, and purchase of or
support for sports or racing equipment, uniforms, sports or racing facilities and or training
facilities, and all expenditures for advertising including but not limited to print, television, radio,
billboards, banners, etc., in the name of the Company or any of its cigarette brands in a sports or
racing facility, on a scoreboard or in conjunction with the reporting of sports or racing results; and
all expenditures connected with the production, offer, sale, or provision without fee of all
functional promotional items at or in connection with a sporting or racing event, including but not
limited to, clothing, hats, bags, posters, sporting or racing goods, and equipment.

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54.

Was the variety’s tar rating disclosed on the cigarette pack?
1. Yes
2. No

55.

Was the variety’s nicotine rating disclosed on the cigarette pack?
1. Yes
2. No
The next two fields are used by the FTC.

56.

BRAND-SALES (Brand unit sales): FTC calculated field value, enter 0 here.

57.

BRAND-DOLLARS (Brand dollar sales): FTC calculated field value, enter 0 here.

The last two fields hold additional identifier data for specific varieties of cigarettes. Please enter
the identifiers in the appropriate fields.
58.
UPC-CODE: Numeric value, enter industry standard bar-code value for product as printed
on the pack.
59.

TITL CODE (TITL testing code): Enter TITL code. (6 characters).

OTHER EXPLANATORY NOTES
Expenditures on lines 26 through 51 should be included in only one category. Expenditures
on line 53 (sporting events) duplicate expenditures reported on lines 26 through 51. Reportable
expenditures (line 26 through 51) should equal the total on line 52, and should equal the total cost
to the Company of administering the activity involved, including commissions and other payments
made to separate organizations such as advertising agencies. Such expenditures should not include
the costs of employing full-time employees of the Company or any overhead expenses attributable
to the activities of such company employees.
The financial accounting procedure to be used in assigning an expenditure to a particular
calendar year shall be the accrual rather than the cash basis method of accounting.
You are advised that penalties may be imposed under applicable provisions of federal law
for failure to file special reports or for filing false reports.

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The Special Report called for in this Order is to be filed on or before [insert].
By direction of the Commission.
___________________________
William E. Kovacic, Chairman
SEAL

Date of Order: [insert]

The Report required by this Order, or any inquiry concerning it, should be addressed to:
Shira Modell
Federal Trade Commission
Division of Advertising Practices
600 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
smodell@ftc.gov

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