Price Discounting

iconDiscounting

 

 

The tobacco industry spends billions of dollars on marketing including discounts to make tobacco products more affordable. These discounts are deadly – bringing disease and death to the people who use tobacco including more than 100,000 youth in New York State.
 
Youth tobacco use in New York State is still a big problem:

 

  • Each year, 12,900 kids under 18 become new daily smokers in New York.
  • In New York State, 11.9 percent or 107,000 high school students smoke.
  • 88 percent of first cigarette use will occur by the age of 18, with 98 percent of all first use by 26 years of age.

 

The tobacco industry understands the relationship between price and consumption so it has developed strategies including coupons and multipack discounts to make tobacco products more affordable. Coupons directly reduce the price of a product at the point of sale while a multipack discount is a promotional tool that includes the sale of multiple packages or products for one price such as a buy one, get one free offer.

 

 

Price discounting undermines the impact of tobacco taxes and New York’s strong tobacco control policies. New York City has passed legislation to ban the use of coupons and multipack discounts. To learn more or lend your support, contact your local ATFC partners.
 
 

Resources:

Tobacco Product Pricing Publications
http://tobaccopolicycenter.org/tobacco-control/product-pricing/

 

Policy Options For Combating Tobacco Industry Price Discounting PowerPoint http://www.publichealthlawcenter.org/sites/default/files/Pricing%20Webinar%20-%20FINAL%20merged%20slides.pdf

 

Policy Approaches to Restricting Tobacco Product Coupons and Retail Value-Added Promotions
http://www.publichealthlawcenter.org/sites/default/files/resources/tclc-guide-policy-approaches-pricing-cppw-2013.pdf

 

Sensible Tobacco Enforcement:
http://www.countertobacco.org/sensible-tobacco-enforcement-and-pricing-step

 

New York City Coupon Ban
http://countertobacco.org/new-york-city-point-sale-legislation