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Tobacco giant sues Australia over packaging law
Source: Agencies |
November 22, 2011, Tuesday
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TOBACCO giant Philip Morris yesterday launched legal action against Australia's government less than an hour after parliament passed laws banning all logos from cigarette packaging.
Health and aging minister Nicola Roxon called the new law "an example for the world to follow."
The legislation, which takes effect in December next year, bans the use of logos and brand imagery on cigarette packets, requiring instead that brand names be printed in a small, uniform font on dull olive green packets - a color the government believes consumers will dislike.
Cigarette packs will also carry larger health warnings with graphic pictures of the negative health effects of smoking.
Tobacco companies have fought the legislation and threatened legal action since the government first announced its plan last year.
Philip Morris Asia, which is based in Hong Kong, quickly served a legal notice of arbitration under an investment treaty that Hong Kong has with Australia. The company said it also intends to pursue claims under Australian law.
It says billions of dollars of valuable trademarks and investments in Australia are at stake.
"We are left with no option," Anne Edwards, a spokeswoman for Philip Morris Asia, said. "The government has passed this legislation despite being unable to demonstrate it will be effective at reducing smoking and has ignored the widespread concerns raised in Australia and internationally regarding the serious legal issues associated with plain packaging."
Roxon said passage of the law is a momentous event in Australian public health history.
She said: "Plain packaging means the glamour is gone from smoking and cigarettes are now exposed for what they are - killer products that destroy thousands of Australian families."
She said packaging is one of the last powerful marketing tools available to tobacco companies.
"Let there be no mistake, big tobacco is fighting against the government for one very simple reason - because it knows, as we do, that plain packaging will work," Roxon said.
Tobacco advertising on billboards and in magazines has long been banned and restrictions on smoking in public places, including restaurants and bars, are common.
Smoking rates have been declining in Australia for years, but the government says cigarettes still kill 15,000 Australians a year and cost the country about US$31.5 billion annually.
Health and aging minister Nicola Roxon called the new law "an example for the world to follow."
The legislation, which takes effect in December next year, bans the use of logos and brand imagery on cigarette packets, requiring instead that brand names be printed in a small, uniform font on dull olive green packets - a color the government believes consumers will dislike.
Cigarette packs will also carry larger health warnings with graphic pictures of the negative health effects of smoking.
Tobacco companies have fought the legislation and threatened legal action since the government first announced its plan last year.
Philip Morris Asia, which is based in Hong Kong, quickly served a legal notice of arbitration under an investment treaty that Hong Kong has with Australia. The company said it also intends to pursue claims under Australian law.
It says billions of dollars of valuable trademarks and investments in Australia are at stake.
"We are left with no option," Anne Edwards, a spokeswoman for Philip Morris Asia, said. "The government has passed this legislation despite being unable to demonstrate it will be effective at reducing smoking and has ignored the widespread concerns raised in Australia and internationally regarding the serious legal issues associated with plain packaging."
Roxon said passage of the law is a momentous event in Australian public health history.
She said: "Plain packaging means the glamour is gone from smoking and cigarettes are now exposed for what they are - killer products that destroy thousands of Australian families."
She said packaging is one of the last powerful marketing tools available to tobacco companies.
"Let there be no mistake, big tobacco is fighting against the government for one very simple reason - because it knows, as we do, that plain packaging will work," Roxon said.
Tobacco advertising on billboards and in magazines has long been banned and restrictions on smoking in public places, including restaurants and bars, are common.
Smoking rates have been declining in Australia for years, but the government says cigarettes still kill 15,000 Australians a year and cost the country about US$31.5 billion annually.
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