Also: It doesn't really seem like she's ruining her life by smoking cigarettes and hanging with her friends all the time, seeing as you don't know where she's going or what she's doing, you can't really tell if she's making bad choices.
It looks like she's not doing so good in school and is being tardy a lot to that class Caution mentioned. Do you really think that isn't related to the cigarettes and friends? From what I can tell, she might have trouble getting into college, which will make it pretty hard to get a good job. Sure she might get an alright job, but it won't be that great. She doesn't sound like one of those people that is a lazy genius.
The "My house, my rules" isn't good unless they're explaining why they have their rules. Probably anyone can agree with this from personal experiences. My sister and I tell each other stuff before telling our parents simply because we know we want harass each other. If it's the same way between your sister and you, you might be able to help her more then your parents.
Poll