Feds to Big Tobacco on Cigarette Labeling Fight: "Uncle!" The feds are admitting defeat for now in their fight for graphic, negative imagery to be displayed on all cigarette packaging and advertisements. Attorney General Eric Holder announced yesterday that the Justice Department will not ask the Supreme Court to reverse their loss in a federal appeals court last August, in which the judges ruled 2-1 that the government's proposed rules on cigarette packaging (to mandate disturbing visual images and the phone number 1-800-QUIT-NOW occupy a large portion of each package and advertisement) violated the First Amendment rights of the cigarette companies.