Friday, May 23, 2014

Australian court throws out cigarette plain packaging challenge



Tobacco group have experienced important hold up in their effort to block UK Government strategies to initiate plain packaging for cigarettes, after they misplaced an officially allowable confront to avoid analogous events in Australia.

The overwhelm in Australia will make it more difficult for businesses comprising Imperial Tobacco, Japan Tobacco International (JTI) and British American Tobacco (BAT) to put off Britain from accepting its own hard anti-smoking events.

Under laws that come into effect this December, Australia will become the first country to require cigarettes to be sold in drab, olive packets with graphic health warnings and no logos.
The laws have been tipped to trigger an “olive revolution”, with similar measures being considered in Britain, Canada, New Zealand, China, France, India, South Africa, Norway and Uruguay.
Australia’s High Court yesterday dismissed a challenge by BAT, Imperial Tobacco, Philip Morris and JTI.
The companies claimed that the laws unlawfully extinguished the value of their trademarks without providing compensation.
The court has not yet released its reasons but published its finding and awarded costs against the tobacco companies.
The ruling saw shares in both BAT and Imperial fall nearly 2pc.
The decision was hailed by the Australian government as a “massive victory” which would save lives and help reduce smoking rates. It clears the way for the government to ban all brand marks and logos on cigarette packets from Dec 1.
The packets will feature large graphic health warnings while the brand name will be written in a small generic font.
“This is good news for every Australian parent who worries about their child picking up an addictive and deadly habit,” said Australia’s Attorney-General, Nicola Roxon.
BAT said there was no evidence that plain packaging prevents people from smoking and called for a review of the laws.
The London-listed group also argued that the Australian decision should not impact its case against plain packaging in the UK.
“There are still significant domestic and European Union-based legal obstacles to the introduction of plain packaging in the UK, notwithstanding the Australian High Court decision, which consequently should have no bearing on the UK Department of Health’s consultation on plain packaging,” it said.

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