Tobacco Giants Challenge UK's Standardised Packaging Regulations

Strategic Insights -

The tobacco industry, led by Philip Morris International, British American Tobacco, Imperial Tobacco, and Japan Tobacco International, has brought a judicial review action against the UK Government's Standardised Packaging of Tobacco Products Regulations 2015. The regulations, due to come into force in May next year, will ban companies from using any logos or branding on packets of tobacco products, requiring all packaging to be a dark brown or green color with small, non-distinctive lettering. The companies argue that this will destroy their property rights and render products indistinguishable from each other.

Key Takeaways:

  • The tobacco industry is challenging the UK Government's Standardised Packaging of Tobacco Products Regulations 2015, which ban companies from using logos or branding on packaging.
  • The regulations are due to come into force in May next year and will require all packaging to be a dark brown or green color with small, non-distinctive lettering.
  • The companies argue that the regulations will destroy their property rights and render products indistinguishable from each other.
  • Philip Morris International submits that the regulations are "disproportionate and so must be quashed".
  • The companies argue that the regulations violate a number of UK and EU laws and are "disproportionate".
  • The Health Secretary argues that the regulations are lawful and will discourage more people from smoking.
  • The case is being heard in the High Court by Mr Justice Green, sitting in London, and is expected to last six days.
  • The companies manufacture products which contribute approximately £10 billion per year in excise duty alone for the UK exchequer.
  • The Secretary of State has never sought to ban tobacco products, but rather regulate them in a way that is "almost unprecedented in any other field".

Statistics:

  • The tobacco industry contributes approximately £10 billion per year in excise duty alone for the UK exchequer (£10 billion).
  • Tobacco products are used by around 19% of the adult population (19%).
  • The regulations are due to come into force in May next year.
  • The companies argue that the regulations will destroy their property rights and render products indistinguishable from each other.
  • Independent and systematic reviews of evidence have concluded that branded packaging plays an important role in encouraging young people to smoke (varies).
  • Standardised packaging is highly likely to reduce both uptake and prevalence of smoking, and thus will have a positive impact on public health (varies).

Sources:

  • Byline: Cathy Gordon, Press Association (no date mentioned)
  • David Henderson QC for Japan Tobacco International (no date mentioned)
  • Mr Anderson, Secretary of State's counsel (no date mentioned)
  • James Eadie QC, representing the Health Secretary (no date mentioned)
  • Marie Demetriou, QC for Philip Morris International (no date mentioned)