FTC Cigarette and Smokeless Tobacco Data Collection

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

Edith Ramirez, Chairwoman
Julie Brill
Maureen K. Ohlhausen
Joshua D. Wright
Terrell McSweeny

File No. P114508
ORDER TO FILE SPECIAL REPORT
Pursuant to a resolution of the Federal Trade Commission dated [insert date], 2015,
entitled “Resolution Directing Use of Compulsory Process,” a copy of which is enclosed, [insert
recipient’s name] is ordered to file a Special Report with the Commission not later than [insert
date], 2015, 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 [insert recipient’s
name] who has prepared or supervised the preparation of the report from books, records,
correspondence, and other data and material in your possession.
Your report should restate each item of this Order with which the corresponding answer
is identified. 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 [insert recipient’s name], its official address, and its date and state
of incorporation.

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].

3.
State whether [insert recipient’s name] is a subsidiary company; and if so, identify the
full name and official address of its ultimate parent company.2
4.

A.
If [insert recipient’s name] is a subsidiary company, identify all other direct and
indirect subsidiary companies of [insert recipient’s name]’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 [insert recipient’s name] is not a subsidiary company, identify all of [insert
recipient’s name]’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.

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 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.
2

5.
Report the net (i.e., after accounting for returns) number of cigarettes sold in the United
States by the Company during calendar year 2014.3 This includes 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 2014. 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 2014. 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.

3

For the purposes of this Order, the term “the Company” shall mean: [insert recipient’s
name]; 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) that 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, the Commonwealth of the Northern Mariana Islands, and the United States
territorial possessions (including Guam, the Virgin Islands, American Samoa, Wake Island,
Midway Islands, Kingman Reef, and Johnston Island).
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.
3

8.
Report separately the dollar amount expended during calendar year 2014 by the Company
on cigarette advertising, merchandising, or promotion in the United States in each category
specified in items 4 through 32 of Datafile No. 2.5 This request is in addition to the request for the
electronic Datafile.
9.

A.

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 2014. If so, please state which show(s) or movie(s),
and the dollar value of each payment or contribution.

B.

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 2014 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.

C.

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 2014. If so, please state which show(s) or movie(s).

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

D.

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 2014. If so, please state which show(s) or
movie(s).

E.

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 2014. If so, please provide the name
of the video(s), the name of the site on which the video(s) appeared, and the
Uniform Resource Locator (“URL”) for each video.

F.

State whether the Company or any other persons working for or on behalf of the
Company engaged in social media marketing that promoted any cigarette brand or
variety, or that used any cigarette brand imagery, in 2014. If so, please identify
each type of social media marketing used, including, but not limited to, social
networking sites, microblogging sites, content-sharing sites, and blogs.

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 2014 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, teams, or individuals.
11.

A.

List all varieties of cigarettes that the Company first offered for sale in the United
States during calendar year 2014.

B.

List all varieties of cigarettes that the Company discontinued from sale in the United
States during calendar year 2014.

12.
Report the dollar amount expended during calendar year 2014 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 5-12 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 subsidiary, who has prepared or
supervised the preparation of the report from books, records, correspondence, and other data and
6

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

of age.
5

material in its possession. In such case, an official of [insert recipient’s name] still must submit a
report subscribing and swearing that the subsidiaries’ reports submitted constitute all relevant
information for the [insert recipient’s name] and its subsidiaries, and that no contrary information
exists. The written report or reports may be submitted either in 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 spreadsheet
format (readable by Microsoft Excel).
Beginning with data for the year 2014, the Commission is requesting that sales data and
data on cigarette advertising, merchandising, and promotion be reported in two separate datafiles.
The instructions below provide detailed information on how to complete the two Datafiles.
DATAFILE NO. 1
INSTRUCTIONS FOR COMPLETING DATA FILE NO. 1:
Sales data and certain other information are to be reported in Datafile No. 1 separately for
each variety of cigarettes7 produced by the Company. The Commission no longer requests an
“Overall brand” record that sums up the data for each cigarette variety within the brand.8
FIELD DEFINITIONS FOR DATA FILE NO. 1
Datafile No. 1 contains 26 fields of data. The first five 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.”

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.
8

Thus, a brand with one variety will now have just one record, which will be specific to
that variety; a brand with 20 varieties will have 20 records.
6

2.

COMPCODE (Company Code): Character field. Enter letter assigned for the Company:
[insert company name]
[insert company name]
[insert company name]
[insert company name]
[insert company name]

A
B
C
D
E

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.
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 seven fields include the brand name and marketing / physical characteristics that
make the variety unique. 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-FLAVOR (Marketing description of cigarette flavoring): Character field. This field
is eight characters long.
11.
CR-STYLE (Marketing description of special attributes of a variety): Character field.
This field is eight characters long.
12.
CR-OTHER (Marketing descriptors not falling into standard categories): Character field.
This field is eight characters long.
7

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 sold.
13.
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 2014, net of the number
of cigarettes of this variety that were returned. Include cigarettes given away to retailers for
subsequent sale to consumers.
14.
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 2014, net
of the number of cigarettes of this variety that were returned.
15.
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 2014, net of the value of
cigarettes of this variety that were returned.
16.
CIGLENGTH (Cigarette length in millimeters): Numeric field. Three digits. Enter
cigarette length in millimeters.
17.
FILCODE (Filter code): Character field. One character in length. Enter “F” for filtered
or “N” for non-filtered.
18.
FLAVOR (Flavoring): Character field. One character in length. Enter “M” for menthol,
“N” for non-flavored, “O” for other flavored.
19.
PACKTYPE (Packaging): Character field. One character in length. Enter “S” for
soft-pack, “H” for hard-pack.
20.
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. If no data are available, leave these fields blank. Round tar and
carbon monoxide figures to the nearest whole mg; round nicotine figures to the nearest tenth mg.
21.

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

22.

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

23.

CO (Carbon Monoxide): Numeric value, range 0 - 99.

24.

Was the variety’s tar yield disclosed on the cigarette pack?
1. Yes
2. No
8

25.

Was the variety’s nicotine yield disclosed on the cigarette pack?
1. Yes
2. No

The last field holds additional identifier data for specific varieties of cigarettes.
26.
UPC-CODE: Numeric value, enter industry standard bar-code value for product as printed
on the pack.
DATAFILE NO. 2:
INSTRUCTIONS FOR COMPLETING DATAFILE NO. 2
The next 32 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 4-32 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.
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.
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. 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.
FIELD DEFINITIONS FOR DATAFILE NO. 2
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:
[insert company name]
[insert company name]
[insert company name]
[insert company name]
[insert company name]

A
B
C
D
E

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
9

next unused integer. For the “Non-brand specific” record, enter the value 99.
4.
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.
5.
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.
6.
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.
7.
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 Category W or Category X below.
8.
CAT-E-EXP (Category-E 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.
9.
CAT-F-EXP (Category-F 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.
10.
CAT-G-EXP (Category-H Expenses): Price discounts paid to cigarette retailers 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.
11.
CAT-H-EXP (Category-H Expenses): Price discounts paid to cigarette 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.
10

12.
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.
13.
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.
14.
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.
15.
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.
16.
CAT-M-EXP (Category-M Expenses): All costs of distributing any items (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 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.

11

17.
CAT-N-EXP (Category-N Expenses): All costs of distributing any items (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 do 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.
18.
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, that 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.
19.
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, that 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.
20.
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.
21.
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 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.
22.
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
12

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.
23.
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.
24.
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).
25.
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.
26.
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. This category includes, but is
not limited to, expenditures for cigarette brand websites.
27.
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 online services, and electronic mail messages, but excluding, if practicable, those
expenditures covered by Category Z, which should be reported in that category. This category
includes but is not limited to: spending on all Internet sites and pages, hyperlinks and banners on
third-party sites, newsgroups, and online 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, 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
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of online advertising, whether located on systems maintained by the Company or by third-party
advertisers, commercial online services, or Internet World Wide Web host providers.
28.
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.
29.
CAT-Z-EXP (Category-Z Expenses): All expenditures for social media marketing on Web
sites or other online services or communities, including, but not limited to, social networking sites,
microblogging sites, content-sharing sites, and blogs.
30.
CAT-AA-EXP (Category-AA 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.
31.
TOT-ADV-EXP (Total Reportable Expenditures): Reportable expenditures for the brand
as defined in the explanatory notes. The figure provided for total reportable expenditures should
equal the sum of the expenses listed in Categories A through AA for the brand.
32.
SPORTS-EXP (Sports and Sporting Events): The expenditures reported in this category
are intended to be duplicative of expenditures listed above on lines 4-30 and totaled on line 31.
Do not report any expenditures on this line that have not also been reported on lines 4-30. For
example, sponsorship of a sporting event that is reported on line 19 or 20 would also be reported on
line 32; and a miscellaneous expenditure for sponsoring a sports or racing team would be reported
on lines 22 and 32. “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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OTHER EXPLANATORY NOTES FOR DATAFILE 2
Expenditures on lines 4-30 should be included in only one category, except for any amounts
also reported on line 32 (sports). Reportable expenditures (lines 4-30) should equal the total on
line 31, 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. In addition, expenditures reported on lines 4-32 should include all expenditures for
advertising and promotion relating to smokeless tobacco regardless of whether the advertising or
promotion would constitute “commercial speech” or would be protected from law enforcement
action by the First Amendment. However, 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.
The Special Report called for in this Order is to be filed on or before [date], 2015.
By direction of the Commission.
___________________________
Edith Ramirez, Chairwoman
SEAL
[date], 2015
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., Mailstop CC-10528
Washington, D.C. 20580
smodell@ftc.gov

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