Cigarette Testing and Liability Act of 1988 - Amends the Federal Trade Commission Act to require the Federal Trade Commission to provide for a continuing study of the constituents of tobacco smoke, including: (1) random testing of cigarettes produced or sold in the United States to determine the amount of specified ingredients of the smoke of cigarettes; and (2) the levels of such ingredients when people change their smoking behavior to compensate for lower levels of nicotine.

Directs the Commission to: (1) arrange for a laboratory of the Federal Government or a private, nonprofit laboratory with no connection to a tobacco company to conduct the study; (2) require, as a condition to the arrangement, that the laboratory conduct similar studies for private nonprofit groups; and (3) report annually to the Congress on the results of the study.

Amends the Federal Cigarette Labeling and Advertising Act to provide that compliance with cigarette labeling and advertising requirements does not relieve any person from liability under common law or State statutory law.