OMB Control No. 3084-0134 

Expires 8/31/241 

UNITED STATES OF AMERICA 

FEDERAL TRADE COMMISSION 

COMMISSIONERS: Lina M. Khan, Chair 

Noah Joshua Phillips 

Rebecca Kelly Slaughter 

Christine S. Wilson 

File No. P114508 

ORDER TO FILE SPECIAL REPORT 

Pursuant to a resolution of the Federal Trade Commission dated February 1, 2022, 

entitled “Resolution Directing Use of Compulsory Process,” a copy of which is enclosed, 

[COMPANY NAME] is ordered to file a Special Report with the Commission not later than 

May 31, 2022, containing the information specified herein. 

The Special Report is required to be subscribed and sworn to by an official of 

[COMPANY NAME] who has prepared or supervised the preparation of the Special Report 

from books, records, correspondence, and other data and material in your possession. 

The Special 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 responses to each of the following requests: 

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 NAME] its official address, and its date and state 

of incorporation. 

3. State whether [COMPANY NAME] 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 3084-0134. 

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 

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4. A. If [COMPANY NAME] is a subsidiary company, identify all other direct and 

indirect subsidiary companies of [COMPANY 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,3 promotion, marketing, development, offering for sale, sale, or 

distribution of smokeless tobacco. 

B. If [COMPANY NAME] is not a subsidiary company, identify all 

of [COMPANY 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 smokeless tobacco. 

5. Report the net (i.e., after accounting for returns) number of pounds of smokeless tobacco 

sold in the United States by the Company during calendar year 2021.4 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: (a) holding 50 percent or more of the outstanding 

voting securities of an issuer; (b) 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; or (c) being the managing partner 

in a partnership, even if such managing partner has a minority ownership interest in the 

partnership. 

3 For the purposes of this Order, the term “advertising” refers to all activities relating to 

smokeless tobacco 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 smokeless tobacco. 

4 For the purposes of this Order, the term “the Company” shall mean: [COMPANY 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 smokeless tobacco; 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 

smokeless tobacco. The term “the Company” shall not, however, include any entity: (a) whose 

only involvement in the manufacturing, labeling, advertising, promotion, marketing, 

development, offering for sale, sale, or distribution of smokeless tobacco is as a convenience 

store, supermarket, gas station, pharmacy, or other retailer; (b) that sells smokeless 

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smokeless tobacco given for free to retailers for subsequent sale to consumers. Report 

sales in whole pounds. 

6. Report the net (i.e., after accounting for returns) number of smokeless tobacco product 

units sold in the United States by the Company during calendar year 2021 in individual 

packages containing: 

(a) less than 1 ounce of smokeless tobacco; 

(b) from 1 ounce to less than 2 ounces of smokeless tobacco; 

(c) from 2 ounces to less than 5 ounces of smokeless tobacco; 

(d) from 5 ounces to less than 10 ounces of smokeless tobacco; 

(e) from 10 ounces to less than 15 ounces of smokeless tobacco; 

(f) 15 ounces or more of smokeless tobacco. 

This includes units given for free to retailers for subsequent sale to consumers. Each unit 

sold should be reported in the smallest size package in which it could have been sold to 

consumers. For example, a can roll consisting of ten individual cans each containing 11⁄4 

ounce of moist snuff should be reported as ten units in category 6(b) and not as one unit 

in category 6(e). 

7. Report the net (i.e., after accounting for returns) dollar value of smokeless tobacco sold in 

the United States by the Company, excluding free samples, during calendar year 2021. 

Report dollar sales value in whole dollars. 

8. Report the net (i.e., after accounting for returns) number of smokeless tobacco product 

units given away in the United States5

 by the Company during calendar year 2021 in 

tobacco products that are not manufactured or imported by the company; and (c) for which sales 

of smokeless tobacco products and smokeless tobacco 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. 

For the purposes of this Order, the phrase “given away in the United States” shall include 

all smokeless tobacco product given away: (a) within the United States; (b) to members of the 

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individual packages containing: 

(a) less than 1 ounce of smokeless tobacco; 

(b) from 1 ounce to less than 2 ounces of smokeless tobacco; 

(c) from 2 ounces to less than 5 ounces of smokeless tobacco; 

(d) from 5 ounces to less than 10 ounces of smokeless tobacco; 

(e) from 10 ounces to less than 15 ounces of smokeless tobacco; 

(f) 15 ounces or more of smokeless tobacco. 

This should include all smokeless tobacco product units distributed for free, whether 

through sampling, coupons for free product, “buy two, get one free” type offers, or 

otherwise, as long as such smokeless tobacco product units were not reported as sold in 

response to Question 6, above. Each unit given away should be reported in the smallest 

size package in which it could have been given away to consumers. 

9. Report the dollar amount expended in calendar year 2021 by the Company on smokeless 

tobacco advertising, merchandising, or promotion in the United States in each category 

specified in fields 6-34 of Datafile No. 2.6

 This request is in addition to the request for 

the electronic datafile. 

10. 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 smokeless 

tobacco) in connection with any production or filming of any motion picture(s), 

television show(s) (including scripted, original shows streamed via the Internet), 

or video game(s) during calendar year 2021. If so, please identify those show(s), 

movie(s), and video game(s), and the dollar value of each payment or 

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. 

The term “smokeless tobacco 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 smokeless tobacco; (b) signs on factories, plants, warehouses and other facilities 

related to the manufacture or storage of smokeless tobacco; (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 underage persons 

or their parents that are intended to reduce the use of smokeless tobacco products by underage 

persons. 

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. 

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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 smokeless 

tobacco) during calendar year 2021 to any individual, partnership, or corporation 

engaged in the business of product placement in motion pictures, television shows 

(including scripted, original shows streamed via the Internet), or video games. If 

so, please identify: the person who made the payment or 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, television show, and 

video game in which any of the Company’s smokeless tobacco products or 

smokeless tobacco 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 smokeless tobacco product or 

any smokeless tobacco brand imagery in any motion picture(s), television show(s) 

(including scripted, original shows streamed via the Internet), or video game(s) 

during calendar year 2021. If so, please identify those show(s), movie(s), and 

video game(s). 

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 smokeless tobacco product or any smokeless tobacco brand imagery in any 

motion picture(s), television show(s) (including scripted, original shows streamed 

via the Internet), or video game(s) during calendar year 2021. If so, please state 

which show(s), movie(s), and video game(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 smokeless tobacco product or 

any smokeless tobacco brand imagery, or granted approval or otherwise gave 

permission for the appearance of any smokeless tobacco product or any smokeless 

tobacco brand imagery, in any video appearing on the Internet, including, but not 

limited to, sites providing user-generated content, during calendar year 2021. 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 smokeless 

tobacco brand or variety,7

 or that used any smokeless tobacco brand imagery, in 

For purposes of this Order, the term “variety” refers to smokeless tobacco products that 

have different UPC codes. 

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calendar year 2021. 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. 

11. 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 2021 during which the name, logo, or an image of any portion 

of the package of any brand or variety of smokeless tobacco product sold by the 

Company appeared on television through televised coverage of sponsored events, teams, 

or individuals. 

12. Report the dollar amount expended during calendar year 2021 by the Company in the 

United States on advertisements directed to underage persons or their parents that were 

intended to reduce the use of smokeless tobacco by underage persons.8 

13. State whether the Company sold any nicotine lozenges or any nicotine pouches not 

containing tobacco in the United States during calendar year 2021. If so, please report 

the net (i.e., after accounting for returns) sales by the Company of such products in the 

United States during calendar year 2021, both in the number of units sold and in the 

dollar value of such sales. 

For items 5-13, above, if the responsive information 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 NAME] still must submit a report 

subscribing and swearing that the subsidiaries’ reports submitted constitute all relevant 

information for [COMPANY NAME] and its subsidiaries, and that no contrary information 

exists. The written report or reports should be submitted as a .pdf file and must include the 

signature(s) of the above-referenced official(s) attesting to the accuracy of the Company’s 

report. 

INSTRUCTIONS FOR COMPLETING THE SMOKELESS TOBACCO REPORT 

DATAFILES 

The Commission requests that information be produced by the Company in spreadsheet 

format (readable by Microsoft Excel). 

The Commission is requesting that sales data and data on smokeless tobacco advertising, 

merchandising, or promotion in the United States be reported in separate datafiles. The 

instructions below provide detailed information on how to complete the two datafiles. 

For purposes of this Order, “underage persons” means persons younger than 21 years of 

age. 

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DATAFILE NO. 1 

INSTRUCTIONS FOR COMPLETING DATAFILE NO. 1 

Sales data and certain other information are to be reported in Datafile No. 1 separately for 

each variety of smokeless tobacco produced by the Company. For Datafile No. 1, the 

Commission is requesting data at the variety level, rather than at the brand level.9 

Information for each brand variety of smokeless tobacco sold in the United States by the 

Company during calendar year 2021 (including brand varieties sold in a test market or on a 

limited market basis) should be entered as a separate entry. 

There are 21 separate pieces of information (“fields”) requested on Datafile No. 1 for 

each brand variety. 

FIELD DEFINITIONS FOR DATAFILE NO. 1: 

(1) YEAR COVERED: Refers to the calendar year for which data or other information is 

being reported. Entered as “20XX”. 

The next three fields in the record will be used to create a unique identifier for each brand 

variety of smokeless tobacco. The Company should enter the Company Code; the Commission 

will enter the brand and variety identification codes. 

(2) COMPANY CODE: Enter assigned letter: 

Reynolds American A 

Swisher B 

North Atlantic C 

Swedish Match F 

Altria G 

(3) BRAND NUMBER: FTC will assign these numbers. 

(4) VARIETY CODE: FTC will assign these numbers. 

The next four fields include the brand name and characteristics that make the variety 

unique. These are: 

Thus, a brand with one variety will have one record specific to that one variety; a brand 

with 20 varieties will have 20 records. 

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(5) BRAND NAME: Refers to the brand identified on the packaging. If the product is 

generic or private label, indicate “GENERIC” and complete a separate record for each distinct 

variety. 

(6) PRODUCT TYPE: Refers to the type of product, that is, moist or scotch snuff, looseleaf, 

or plug chewing tobacco, etc. The Commission has assigned a code letter for various product 

types. Enter the appropriate letter: 

Looseleaf A 

Chewing Tobacco B 

Plug C 

Twist D 

Scotch Snuff E 

Dry Snuff F 

Moist Snuff G 

 Snus H 

Dissolvable I 

Other J 

(7) FLAVOR: Description of product flavoring. 

(8) VARIETY DESCRIPTION: Refers to any additional description as identified on the 

packaging or in advertising. The description typically includes characteristics such as grade of 

tobacco, and other advertised characteristics of the product. 

The next 14 fields are used to record the net pounds sold, the net dollar value of those 

sales, the net number of units sold of each size category, the net number of units given away of 

each size category, and any starting or ending dates. Each unit sold should be reported in just 

one size category and should be reported in the smallest size category in which the unit could 

have been sold to consumers. 

(9) POUNDS SOLD: Report one figure for total pounds of the brand variety sold in the 

United States during calendar year 2021, net of the number of pounds of this variety that were 

returned. Include smokeless tobacco given for free to retailers for subsequent sale to consumers. 

Please round to the nearest whole pound. 

(10) DOLLAR SALES: Report one figure for the dollar value of this variety’s sales in the 

United States during calendar year 2021, net of the value of this variety’s returns. Please report 

in actual dollars, not in thousands or millions. 

(11) UNITS SOLD-A: Report the number of individual units of the brand variety sold in the 

United States during calendar year 2021 in packages containing less than one ounce of smokeless 

tobacco, net of the number of units that were returned. This includes units given for free to 

retailers for subsequent sale to consumers. 

(12) UNITS SOLD-B: Report the number of individual units of the brand variety sold in the 

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United States during calendar year 2021 in packages containing at least one ounce and less than 

two ounces of smokeless tobacco, net of the number of units that were returned. This includes 

units given for free to retailers for subsequent sale to consumers. 

(13) UNITS SOLD-C: Report the number of individual units of the brand variety sold in the 

United States during calendar year 2021 in packages containing at least two ounces and less than 

five ounces of smokeless tobacco, net of the number of units that were returned. This includes 

units given for free to retailers for subsequent sale to consumers. 

(14) UNITS SOLD-D: Report the number of individual units of the brand variety sold in the 

United States during calendar year 2021 in packages containing at least five ounces and less than 

ten ounces of smokeless tobacco, net of the number of units that were returned. This includes 

units given for free to retailers for subsequent sale to consumers. 

(15) UNITS SOLD-E: Report the number of individual units of the brand variety sold in the 

United States during calendar year 2021 in packages containing at least ten ounces and less than 

fifteen ounces of smokeless tobacco, net of the number of units that were returned. This includes 

units given for free to retailers for subsequent sale to consumers. 

(16) UNITS SOLD-F: Report the number of individual units of the brand variety sold in the 

United States during calendar year 2021 in packages containing fifteen ounces or more of 

smokeless tobacco, net of the number of units that were returned. This includes units given for 

free to retailers for subsequent sale to consumers. 

(17) UNITS GIVEN-A: Report the number of individual units of the brand variety given 

away in the United States during calendar year 2021 in packages containing less than one ounce 

of smokeless tobacco, net of the number of units that were returned. 

(18) UNITS GIVEN-B: Report the number of individual units of the brand variety given 

away in the United States during calendar year 2021 in packages containing at least one ounce 

and less than two ounces of smokeless tobacco, net of the number of units that were returned. 

(19) UNITS GIVEN-C: Report the number of individual units of the brand variety given 

away in the United States during calendar year 2021 in packages containing at least two ounces 

and less than five ounces of smokeless tobacco, net of the number of units that were returned. 

(20) UNITS GIVEN-D: Report the number of individual units of the brand variety given 

away in the United States during calendar year 2021 in packages containing at least five ounces 

and less than ten ounces of smokeless tobacco, net of the number of units that were returned. 

(21) UNITS GIVEN-E: Report the number of individual units of the brand variety given 

away in the United States during calendar year 2021 in packages containing at least ten ounces 

and less than fifteen ounces of smokeless tobacco, net of the number of units that were returned. 

(22) UNITS GIVEN-F: Report the number of individual units of the brand variety given away 

in the United States during calendar year 2021 in packages containing fifteen ounces or more of 

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smokeless tobacco, net of the number of units that were returned. 

DATAFILE NO. 2 

INSTRUCTIONS FOR COMPLETING DATAFILE NO. 2: 

The next 34 fields are used to record expenditures on smokeless tobacco advertising, 

merchandising, or promotion in the United States for the specific categories requested by the 

FTC, as well as the total and sporting events totals. Please provide information for items 6-34 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 as 1234567. 

The Commission is requesting that expenditures on smokeless tobacco 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 smokeless tobacco advertising, 

merchandising, or promotion in the United States that are not attributable to or in connection 

with any specific brand be reported in a “Non-brand specific” record. Examples of such 

expenditures might include, among others, Category A expenses advertising or promoting all 

smokeless tobacco generally or all of the Company’s smokeless tobacco products but not any 

specific brand of smokeless tobacco and Category W expenses. 

To the extent practicable, third-party agency fees relating to smokeless tobacco 

advertising, merchandising, or promotion should be reported in the categories of advertising or 

promotion to which those fees relate. For example, agency fees related to magazine advertising 

should be reported in Category B, agency fees related to point-of-sale advertising should be 

reported in Category F, and agency fees related to advertising on any Company web site should 

be reported in Category W. To the extent that third-party agency fees relating to smokeless 

tobacco advertising, merchandising, or promotion cannot be divided based on the materials to 

which they relate, they should be reported in Category AA. 

FIELD DEFINITIONS FOR DATAFILE NO. 2: 

(1) YEAR COVERED: Refers to the calendar year for which data or other information is 

being reported. Entered as “20XX”. 

The next two fields in the record will be used to create a unique identifier for each brand 

of smokeless tobacco. The Company should enter the Company Code; the Commission will 

enter the brand identification code. 

(2) COMPANY CODE: Enter assigned letter: 

Reynolds American A 

Swisher B 

North Atlantic C 

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Swedish Match F 

Altria G 

(3) BRAND NUMBER: FTC will assign these numbers. For the “Non-brand specific” 

record, enter the value 99. 

(4) BRAND NAME: Refers to the brand identified in advertising. If the product is generic 

or private label, indicate “GENERIC.” 

(5) PRODUCT TYPE: Refers to the brand’s product type, that is, moist or scotch snuff, 

looseleaf, or plug chewing tobacco, etc. The Commission has assigned a code letter for various 

product types. If a brand has varieties of more than one product type, but the varieties of any one 

product type represent 95 percent or more of the brand’s dollar sales, report that product type; 

otherwise, report “M” for “Multiple” product types. Enter the appropriate letter: 

Looseleaf A 

Chewing Tobacco B 

Plug C 

Twist D 

Scotch Snuff E 

Dry Snuff F 

Moist Snuff G 

 Snus H 

Dissolvable I 

Other J 

Multiple M 

(6) 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. 

(7) 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. 

(8) CAT-C-EXP (Category-C Expenses): Outdoor advertising but excluding, if practicable, 

those expenditures covered by Categories L through V, which should be reported in those 

categories. “Outdoor advertising” means: (a) billboards; (b) signs and placards in arenas, 

stadiums, and shopping malls, whether any of the foregoing are open-air or enclosed; and (c) any 

other advertisements placed outdoors, regardless of their size, including those on smokeless 

tobacco product retailer property. 

(9) 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 

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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. 

(10) 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. 

(11) CAT-F-EXP (Category-F Expenses): Point-of-sale advertising, that is materials 

displayed or distributed at a retail location, but excluding, if practicable, those expenditures 

covered by Category C or Categories L through V, which should be reported in those categories. 

(12) CAT-G-EXP (Category-G Expenses): Price discounts paid to smokeless tobacco product 

retailers in order to reduce the price of smokeless tobacco products to consumers, including offinvoice discounts, buy downs, voluntary price reductions, and trade programs, but excluding 

retail-value-added expenditures for promotions involving free smokeless tobacco products (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. 

(13) CAT-H-EXP (Category-H Expenses): Price discounts paid to smokeless tobacco product 

wholesalers in order to reduce the price of smokeless tobacco products to consumers, including 

off-invoice discounts, buy downs, voluntary price reductions, and trade programs, but excluding 

retail-value-added expenditures for promotions involving free smokeless tobacco products (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. 

(14) CAT-I-EXP (Category-I Expenses): Promotional allowances paid to smokeless tobacco 

product retailers in order to facilitate the sale or placement of any smokeless tobacco product, 

including payments for stocking, shelving, displaying, and merchandising brands, volume 

rebates, incentive payments, and the cost of smokeless tobacco product given for free to retailers 

for subsequent sale to consumers but excluding, if practicable, those expenditures covered by 

Categories A through H, which should be reported in those categories. 

(15) CAT-J-EXP (Category-J Expenses): Promotional allowances paid to smokeless tobacco 

product wholesalers in order to facilitate the sale or placement of any smokeless tobacco product, 

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. 

(16) 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 smokeless 

tobacco product distribution and sales process in order to facilitate the sale or placement of any 

smokeless tobacco product but excluding, if practicable, those expenditures covered by 

Categories A through J, which should be reported in those categories. 

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(17) CAT-L-EXP (Category-L Expenses): Sampling of smokeless tobacco products, 

including the costs of the smokeless tobacco products themselves, all associated excise taxes, 

and the costs of organizing, promoting, and conducting sampling. Sampling includes the 

distribution of smokeless tobacco products for consumer testing or evaluation when consumers 

are able to use the smokeless tobacco products 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 smokeless tobacco product distributions should not be reported. Coupons distributed for 

free smokeless tobacco product, with no purchase or payment required to obtain the coupons or 

smokeless tobacco product, should be reported in this category. When reporting expenses 

associated with such coupons for free smokeless tobacco product, 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. 

(18) CAT-M-EXP (Category-M Expenses): All costs of consumer engagement at smokeless 

tobacco product retail locations open to underage persons, including any third-party agency fees, 

but excluding the cost of coupons or samples distributed in the course of consumer-engagement 

activities. When such activities are combined with the distribution of coupons for the reduction 

of the retail cost of smokeless tobacco products, the expenditures associated with those coupons 

should be reported solely in Category T. When such activities are combined with the distribution 

of coupons for free smokeless tobacco products, with no purchase or payment required to obtain 

the coupons or smokeless tobacco products, the expenditures associated with those coupons 

should be reported solely in Category L. 

(19) CAT-N-EXP (Category-N Expenses): All costs of distributing any items (other than 

smokeless tobacco products, items the sole function of which is to advertise or promote 

smokeless tobacco products, or written or electronic publications), 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 smokeless tobacco product sold by the Company. The 

expenditures reported in this category should be the net cost to the Company, i.e., payments 

received from consumers for such items should be deducted. When such activities are combined 

with smokeless tobacco product sampling, the expenditures connected therewith should be 

reported solely in Category L. When such activities are combined with the sale of smokeless 

tobacco products, such as when a non-smokeless tobacco product item is blister-packed to a 

package or packages of smokeless tobacco products, the expenditures connected therewith 

should be reported solely in Category V. 

(20) 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 

smokeless tobacco products or otherwise referring or relating to smokeless tobacco, that take 

place in an adult-only facility. Such events must include entertainment, as opposed to simply 

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consumer engagement.10 This item includes all expenditures made by the Company in 

promoting or sponsoring such events. When such activities are combined with consumer 

engagement in adult-only facilities, the expenditures connected with consumer engagement 

should be reported solely in Category Q. 

(21) 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 smokeless tobacco products or 

otherwise referring or relating to smokeless tobacco, that do not take place in an adult-only 

facility. Such events must include entertainment, as opposed to simply consumer engagement. 

This item includes all expenditures made by the Company in promoting or sponsoring such 

events. 

(22) CAT-Q-EXP (Category-Q Expenses): All costs of consumer engagement of smokeless 

tobacco users in adult-only facilities, including any third-party agency fees, but excluding the 

cost of coupons distributed. When such activities are combined with smokeless tobacco product 

sampling (including the distribution of coupons for free smokeless tobacco), the expenditures 

associated with the sampling should be reported solely in Category L. When such activities are 

combined with the distribution of coupons for the reduction of the retail cost of smokeless 

tobacco products, the expenditures connected with those coupons should be reported solely in 

Category T. When such activities are combined with the distribution of coupons for free 

smokeless tobacco products, with no purchase or payment required to obtain the coupons or 

smokeless tobacco products, the expenditures associated with those coupons should be reported 

solely in Category L. 

(23) CAT-R-EXP (Category-R Expenses): Endorsements, testimonials, and product 

placement. This item includes, but is not limited to, all expenditures made to procure smokeless 

tobacco use, or the mention of a smokeless tobacco product or company name, or the appearance 

of a smokeless tobacco product or name, logo, or package, in any situation (e.g., motion picture, 

television show or program, video game, stage show, or public appearance by a celebrity) where 

such use, mention, or appearance may come to the attention of the public. 

(24) 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, or hunting events, 

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. 

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competitions, tournaments, or races. 

(25) CAT-T-EXP (Category-T Expenses): All expenditures and costs associated with 

coupons for the reduction of the retail cost of smokeless tobacco products (whether distributed in 

person, by mail, online, or otherwise and whether redeemed at the point of sale, by mail, online, 

or otherwise), 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 smokeless tobacco 

products, with no purchase or payment required to obtain the coupons or smokeless tobacco 

products, should be reported in Category L. Redemption costs should include any payments to 

retailers above the face value of the coupons. 

(26) CAT-U-EXP (Category-U Expenses): Retail-value-added expenditures for promotions 

involving free smokeless tobacco (e.g., buy two, get one free), whether or not the free smokeless 

tobacco is physically bundled together with the purchased smokeless tobacco, including all 

expenditures and costs associated with the value added to the purchase of smokeless tobacco 

(e.g., all associated excise taxes paid on the free smokeless tobacco). 

(27) CAT-V-EXP (Category-V Expenses): Retail-value-added expenditures for promotions 

involving free or discounted non-smokeless tobacco product (e.g., buy two, get a key chain or 

buy two, save 20 cents per gallon of gasoline), including all expenditures and costs associated 

with the value added to the purchase of smokeless tobacco. 

(28) 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 on smokeless tobacco brand web sites. 

(29) CAT-X-EXP (Category-X Expenses): All expenditures for advertising on the Internet, 

other than on the Company’s own Internet web sites, 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 

smokeless tobacco products, or are referred to in any other smokeless tobacco advertising, 

regardless of whether the site, page, hyperlink, banner, or electronic mail message is promoting 

the sale of smokeless tobacco. Expenditures include, but are not limited to, the cost of 

developing, creating, maintaining, monitoring, and updating the site, page, banner, or other form 

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. 

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(30) 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. 

(31) 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. 

(32) CAT-AA-EXP (Category-AA Expenses): Any advertising or promotional expenditures 

not covered by another reporting category. Specify the total amount on the written report and 

briefly describe the specific subject matter of each such expenditure. 

(33) TOT-ADV-EXP (Total Reportable Expenditures): Refers to reportable expenditures for 

the brand 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 AA 

for the brand. 

(34) SPORTS-EXP (Sports and Sporting Events): Report all advertising and promotional 

expenditures connected with or related to sports or sporting events, including but not limited to: 

(a) 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; (b) 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 smokeless tobacco product 

brands in a sports or racing facility, on a scoreboard or in conjunction with the reporting of sports 

or racing results; (c) 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; (d) all expenditures associated with smokeless tobacco product sampling or 

consumer engagement in connection with a sporting event, including sampling or consumer 

engagement in an adult-only facility on the grounds or parking lot of a sports facility; (e) all 

expenses relating to a sweepstakes or contest focused on sports or sporting events (e.g., a trip to 

the Super Bowl, tickets to NASCAR, or a fishing trip), including the promotion of the 

sweepstakes or contest itself; and (f) all expenses for sports-related or sporting event-related 

prizes awarded in sweepstakes or contests that are not focused on sports or sporting events, but 

not cost of promoting the sweepstakes or contest itself. 

The expenditures reported in this category are intended to be duplicative of expenditures listed 

above on lines 6-32 and totaled on line 33. Do not report any expenditures on this line that have 

not also been reported on lines 6-32. For example, sponsorship of a sporting event that is 

reported on line 21 would also be reported on line 34; and a miscellaneous expenditure for 

sponsoring a sports or racing team would be reported on lines 24 and 34. “Sports and sporting 

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________________________________ 

events” includes, but is 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, 

or hunting events, competitions, tournaments, or races. 

OTHER EXPLANATORY NOTES FOR DATAFILE NO. 2 

Reportable expenditures, that is, expenditures on lines 6-32, should be included in only 

one category, except for any amounts also reported on line 34 (sports). Expenditures on lines 6-

32 should equal the total on line 33, and should reflect the 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 6-34 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 compensation of full-time employees of the Company or any overhead expenses 

attributable to the activities of company employees. 

The financial accounting procedure to be used in assigning an expenditure to a particular 

calendar year should be the accrual rather than the cash basis 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 May 31, 2022. 

By direction of the Commission. 

Lina M. Khan, Chair 

SEAL 

Date of Order: February 1, 2022

The Report required by this Order, or any inquiry concerning it, should be addressed to: 

Michael Ostheimer 

Federal Trade Commission 

Division of Advertising Practices 

600 Pennsylvania Avenue, N.W., Mailstop CC-5201 

Washington, D.C. 20580 

mostheimer@ftc.gov 

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