Tobacco firm fined over hand-outs at events attended by children

RJ Reynolds Tobacco has been fined almost $15m (€16.5m) for illegally handing out free packets of cigarettes at events attended by children.

California's attorney general's office says RJ Reynolds handed out 100,000 packets of free cigarettes at events such as street fairs and car races.

A Los Angeles judge ruled that RJ Reynolds had breached a law banning the handing out of free cigarette samples on public property.

Attorney general Bill Lockyer says: "Marketing ploys designed to hook children on cigarettes are illegal and won't be tolerated in California."

RJ Reynolds says it plans to appeal against the ruling.

Deputy general counsel Guy Blynn says Reynolds Tobacco continues to believe that its operations did not, in any way, violate California state law.

People under the age of 21 are not allowed to buy or be offered tobacco products in California, where smoking in public places is banned.

Mr Blynn says the California law under which RJ Reynolds was convicted exempts public areas where children are denied access by security or police officers.

The company says its promotional drives are conducted in areas from which children are barred.

It claims the state is aware of its activities, and even accepted tax revenues from the give-away samples.