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Philip Morris ads curbed
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June 29, 1999: 2:56 p.m. ET
Competitors win U.S. injunction against company's retail program
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NEW YORK (CNNfn) - A federal judge Tuesday granted a request by rival tobacco companies, issuing a preliminary injunction that limits how Philip Morris Inc. advertises in stores.
The suit, filed in U.S. District Court in North Carolina by R.J. Reynolds Tobacco Co., Lorillard Tobacco Co. and Brown & Williamson Tobacco Corp., claimed Philip Morris' agreements with retailers irreparably injured the rest of Big Tobacco.
Judge Frank Bullock ruled that Philip Morris (MO) no longer can engage in agreements requiring retailers to place Philip Morris displays in sections that hold other cigarettes, demand allocation of a percentage of signs that is greater than Philip Morris' market share, or prevent retailers from advertising other brands.
Such agreements were used by Philip Morris in its "Retail Leaders" program.
In his opinion, Bullock called the preliminary injunction an "extraordinary remedy," but stressed that it was necessary in this case.
"Plaintiff's have demonstrated that Philip Morris' control of display space and signage under Retail Leaders will cause all Plaintiffs to suffer irreparable injury in the form of lost goodwill and lost advertising opportunities," Bullock wrote. 
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