Australia - Being Sued for its New Tobacco Law!
Giant tobacco firm Philip Morris is suing Australia for new laws set by their parliament, which have been set to ensure that after December 2012 all cigarette and tobacco products must be sold in plain olive-brown packets that will only display graphic health warnings.
Canberra quoted that the law was “one of the most momentous public health measures in Australia’s history”, but Philip Morris responded by saying that “the move breached a bilateral investment treaty” and “it had served a notice of arbitration under Australia’s Bilateral Investment Treaty with Hong Kong”. PMA’s Australian affiliate Philip Morris Ltd (PML) will also pursue claims under Australian domestic law.
Anne Edwards a spokesman for Philip Morris was also quoted saying; “The government has passed this legislation despite being unable to demonstrate that 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.”
Philip Morris is also expecting damages to be billions of dollars, but the legal process could take anything between two to three years to complete.
“We are confident that our legal arguments are very strong and that we will ultimately win this case,” Anne Edwards also quoted.
British American Tobacco Australia was also quoted earlier this month saying it would launch a challenge in the High Court as soon as the laws were granted royal assent, and that the company will argue it is unconstitutional for the government to remove its trademarks and other intellectual property without any compensation.
Under the new Australian law, the only thing that will distinguish tobacco brands on their packets will be their brands name in a standard colour, position, font size and style. Nicola Roxon from Australia’s Minister for Health and Ageing said – although the tobacco industry is “fighting to protect its profits, we are fighting to protect lives. We know that packaging remains one of the last powerful marketing tools for tobacco companies to recruit new smokers to their deadly products. In the future, cigarette packets will serve only as a stark reminder of the devastating health effects of smoking,”.
