APCO was hatched in 1984 as a subsidiary of the Washington, D.C. law firm Arnold & Porter -- best known for its years of representing the giant tobacco conglomerate Philip Morris. APCO set up fake "grassroots" organizations around the country to do the bidding of Big Tobacco. All of a sudden, "normal, everyday, in-no-way-employed-by-Philip Morris Americans" were popping up everywhere. And it turned out they were outraged -- outraged! -- by exactly the things APCO's clients hated (such as, the government telling tobacco companies what to do).
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