Philip Morris International, one of the largest tobacco companies in the world, has said that it is prepared to seek 'fair compensation for the value of its property' against the UK government in the courts if plain packaging for cigarettes is introduced.
The UK government was holding a six-week consultation period on the plain-packaging proposals, which ended last week. In Philip Morris' submission to the consultation, it stated that the compensation for the loss of its rights could amount to billions of pounds, and that 'standardised packaging is a euphemism for government-mandated destruction of property'.
The company is currently in the process of suing the Australian government in relation to the plain-packaging laws that were introduced there in 2012.
The UK government decided to introduce plain packaging after a study concluded that it would have a positive impact on public health and that it could reduce the number of children taking up smoking. It published draft regulations in June and launched the final consultation process, as it wants 'the decision on whether to introduce standardised packaging of tobacco products to be fully informed'.
The plans by many countries to introduce plain packaging have come under fire by tobacco lobby groups, who say that it will lead to a loss of intellectual property rights. The plans may also be subject to scrutiny by the EU and the World Trade Organisation, as they may represent barriers to free trade.
© 2014 European Supermarket Magazine – Europe’s grocery retail magazine, for all your breaking supermarket, convenience-store and FMCG news. Article written by Nicole Gernon.
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