Australia faces legal challenge to plain packet cigarette law

TOUGH anti-smoking laws banning brand labels passed their final major legislative hurdle in Australia yesterday, with the government now facing the threat of court action from tobacco companies.

Australia’s upper house of parliament agreed to make it mandatory from next December for cigarettes to be sold in plain olive packets, with no mention of brand names. Graphic images showing the harm smoking does would still be permitted.

The Senate vote is the last major hurdle for the new rules, although they must now be rubber stamped by parliament’s lower house in two weeks’ time.

The laws are being closely watched by other governments considering similar moves, but some countries are threatening to take Australia to the World Trade Organisation (WTO) over the restrictions.

Tobacco giants British American Tobacco, Britain’s Imperial Tobacco and Philip Morris have all threatened to go to court and seek billions of pounds in compensation, arguing that the new rules restrict their trademark and intellectual property rights in the marketplace.

“We are disappointed that this bill has been passed – despite there being no apparent evidence this move will make any difference to public health,” British American Tobacco Australia said in a statement.