A March 13, 2007 piece, explaining why tobacco stocks appear to be benefiting from impending FDA regulation of cigarettes, quotes ACSH's Dr. Gilbert Ross on the status quo-enhancing tendencies of regulation, especially the sort that limits new advertising:
Let's explain what's going on here. First, the Kennedy bill (co-sponsored by Texas Republican John Cornyn) specifically prohibits the FDA from banning tobacco products, so some in the industry feel this gives the Marlboro Man and the Camel brand a new lease on life.
Second, the call for new advertising restrictions "clearly protects the dominant name-recognized brands," according to Dr. Gilbert Ross, a tobacco specialist at the American Council on Science and Health. Ad restrictions would help Philip Morris freeze in place its 51% of the cigarette market.
