In a report published last week, You've Got to be Kidding, ASH says BAT has promoted its Lucky Strike brand extensively through branded vending machines in pubs and clubs popular with celebrities.
It also notes that some bands popular with young people display Lucky Strike cigarettes on web pages aimed at teenagers, and the brand is reported to be popular with users of the MySpace web site.
The report was released to coincide with a protest by young activists from the Anti-Tobacco Youth Campaign, run by the Roy Castle Lung Cancer Foundation, at BAT's annual general meeting.
Amy Nolan, 15, from Ormskirk, a member of the campaign, said: "BAT is promoting tobacco through celebrities such as Pete Doherty and models so young people think it's cool."
A spokeswoman for BAT said: "Children are not, and will never be, our audience. The report holds unsubstantiated claims that we are targeting children."
www.roycastle.org.