Tobacco Companies Prepare Multi-billion Compensation Claims over UK Plain Packaging

THE DAILY TELEGRAPH: Taxpayers could be forced to pay tobacco industry up to £11 billion industry for trademark losses

Tobacco companies are preparing to launch what could be one of the biggest ever legal claims against the British Government for losses as a result of the introduction of plain packaging for cigarettes.

They are expected to begin lodging papers at the High Court as early as Friday, seeking a multi-billion compensation payout for being stripped of the right to use instantly recognisable brands.

Lawyers will argue that forcing them to use entirely unbranded packaging would amount to deprivation of a highly valuable intellectual property.

Although the companies would leave it to the court to determine the exact level of compensation, industry analysts have suggested their combined value of the industry in the UK could be as much as £11 billion.

A collective payout on that scale would wipe out almost the whole of the Government’s planned £12 billion welfare savings and dwarf the £8 billion of extra cash for the NHS promised by the Conservatives at the General Election. » | By John Bingham, Social Affairs Editor | Thursday, May 21, 2015

Government to Move Ahead with Standardised Cigarette Packets

Read the BBC article here | Thursday, April 03, 2014

Unbranded Cigarettes Could Mean People Smoke More, Experts Warn

THE DAILY TELEGRAPH: Unbranded cigarette packs could mean people smoke more, experts warn

Putting cigarettes in plain packs could lead to a rise in sales, experts have said, as smokers will no longer care about buying expensive brands.

The warning came as industry data from Australia - the only country to introduce plain packaging - suggests that the amount of tobacco delivered to retailers has risen in the year since changes were made. » | Laura Donnelly, Health Editor | Monday, March 24, 2014

Cigarette Plain Packaging ‘Fuelling Black Market’

THE DAILY TELEGRAPH: Plain packaging for cigarettes in Australia has not cut smoking and boosted sales of black market products, tobacco industry report claims

Forcing shops to sell cigarettes in plain packaging does not in itself cut smoking levels but boosts sales of smuggled packets, a Government review has been told.

According to a report commissioned by the tobacco industry, initial evidence from Australia – the first country in the world to introduce plain packaging laws – suggests that overall smoking levels are unchanged.

But it estimates that the country has missed out on the equivalent of £530 million of tax as smokers switch to cheaper, illegal varieties – often in packaging which resembles traditional boxes.

The report has been submitted to a government review investigating evidence for introducing a similar policy in the UK. » | John Bingham, Social Affairs Editor | Monday, February 03, 2014

Ireland to Become First EU Country to Ban Cigarette Branding
THE DAILY TELEGRAPH: Ireland is to become the first country in the European Union to ban branding on cigarette packages by using plain packaging and uniform labelling.

All trademarks, logos, colours and graphics will be removed from tobacco products sold in Ireland under the new rules, the health ministry said, after the proposal secured backing from the government.

Dr James Reilly, the country’s health minister, said while many arguments will be made against the move, he is confident the legislation will be justified and supported purely by the fact that it will save lives.

“Smoking places an enormous burden of illness and mortality on our society, with over 5,200 people dying every year from tobacco-related diseases,” he said.

“One in two of all smokers will die from their addiction.

“To replace the smokers who quit, the tobacco industry needs to recruit 50 new smokers in Ireland every day just to maintain smoking rates at their current level.”

Dr Reilly also admitted that his father and brother, both doctors, died from smoking-related illness. » | Reuters and PA | Tuesday, May 28, 2013

My comment:

They can plain-package cigarettes as much as they like, but they won't make smoking any less sexy. – © Mark

Government to Legislate for Plain Cigarette Packaging This Year
THE GUARDIAN: UK to follow example of Australia, where cigarettes must be sold in drab packets with graphic health warnings

Ministers are to introduce plain packaging for cigarettes along the Australian model with legislation this year, after becoming convinced that the branding is a key factor in why young people start to smoke.

The legislation, to be announced in the Queen's speech in May, is also expected to ban smoking in cars carrying anyone aged under 16 years. Ministers acknowledge that the ban is likely to be difficult for the police to enforce, but they believe peer group pressure will have an impact similar to the ban on drivers using mobile phones.

David Cameron referred to the possibility of introducing plain packaging last week, without putting a timetable on it. Ministers are convinced that the ban is necessary to take the next step to reduce smoking in the UK.

"We are going to follow what they have done in Australia. The evidence suggests it is going to deter young smokers. There is going to be legislation," said a senior Whitehall source said. » | Patrick Wintour, political editor | Tuesday, March 05, 2013