Britain eyes new rules on tobacco packaging
Print Edition
Britain signaled it would force tobacco companies to scrap branded cigarette packaging yesterday in an attempt to reduce the number of children who may be drawn to smoking by brightly colored packaging.
In a surprise decision welcomed by cancer research charities but scorned by some tobacco companies, the government said it was appointing a pediatrician to examine whether plain packaging would reduce the human and financial cost of smoking.
It was unexpected as Prime Minister David Cameron had in July appeared to shelve plans to force companies such as Imperial Tobacco, Japan Tobacco Inc, British American Tobacco and Philip Morris International to sell cigarettes in plain packaging.
“Stopping cigarettes being marketed to children as a glamorous and desirable accessory is one of the greatest gifts we can give the next generation,” said Harpal Kumar, chief executive of Cancer Research UK.
The government’s decision helped wipe US$1.6 billion off the value of London-listed Imperial Tobacco, which has a 44 percent share of the UK cigarette market, and British American Tobacco in mid-morning trading.
Legal disputes
Marlboro maker Philip Morris was not due to trade yesterday due to the Thanksgiving holiday in the United States.
If implemented, Britain would be one of the first countries in Europe to remove branding and possibly replace it with graphic images of smoking-related diseases. Australia is the only country in the world to have implemented such a law, while Ireland has said it also plans to ban branding on packets.
Lawyers said the move could trigger legal disputes, with tobacco firms arguing plain packaging laws violate their trademark rights and may restrict free trade. Australia is already facing challenges at the World Trade Organization over complaints the laws create illegal obstacles to commerce.
“If the government goes ahead with the proposals, it could still face a huge challenge to make it reality,” said Sarah Byrt, intellectual property partner at law firm Mayer Brown.
Britain’s tobacco market, worth about US$28 billion retail a year according to Euromonitor International, is dominated by Imperial and Japan Tobacco, followed by BAT and Philip Morris.
The biggest cigarette groups have been grappling with declining sales.
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