2nd UPDATE: US Unveils New Health Warnings On Cigarettes, Advertisements

Graphic images depicting dead bodies and diseased lungs were unveiled by federal health officials Wednesday as part of a move to require bolder health warnings on cigarettes and advertising.

A 2009 law requires larger and more graphic health warnings on cigarettes as part of an effort to discourage people from starting to smoke and to lower current smoking rates. Currently, 20.6% adults and 19.5% of high school students smoke cigarettes, according to government figures.

The Food and Drug Administration has developed 36 images and will be accepting public comment on them until January before it narrows the selection to nine.

The warnings will be required to be placed on all cigarette packages and advertisements no later than Oct. 22, 2012. The pictures and warnings such as "smoking can kill you" will be required to be placed on the top half of cigarette packages with the brand name on the lower portion of the packages. The warnings will be required to cover 50% of the front and back panels of a cigarette pack as well as the top 20% of cigarette advertisement.

"It will drastically change the look and message on a pack of cigarettes," Health and Human Services Secretary Kathleen Sebelius said at a press conference announcing the new warnings.

The changes will affect all tobacco companies including Altria Group Inc. (MO), the parent company of Philip Morris USA; Reynolds American Inc. (RAI); and Lorillard Inc. (LO).

Earlier this year a federal district-court judge in Kentucky upheld many of the provisions of a 2009 law that gave the FDA the authority to regulate tobacco including a requirement that companies place large, graphic health warnings on cigarette packs.

However, the judge ruled that it can't block companies from using color or graphics in their advertisements, meaning the FDA can't require black-and-white only packaging or advertising.

Reynolds American Inc. and Lorillard Inc. filed a lawsuit last year against the U.S. government challenging some of the provisions of the 2009 tobacco law.

-By Jennifer Corbett Dooren, Dow Jones Newswires; 202-862-9294; jennifer.corbett@dowjones.com

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