Christopher Ogden, Chief Executive of the Tobacco Manufacturers’ Association (TMA) [1], said:

“This ban is unnecessary and unjustified. It is also unwanted by a significant number of politicians from all parties [2] and by the retailers whose businesses will be adversely affected to no purpose.

“The TMA believes legislation should be balanced, proportionate and evidence-led. The Government has not presented any credible evidence to support their stated objective that a ban would reduce youth smoking. A Populus survey conducted on behalf of the TMA shows that 64% of people interviewed agreed that a ban would not stop those under the legal age from starting to smoke [3].

“We are very disappointed that the Government has not taken into account evidence provided by key stakeholders that a display ban would create serious unintended consequences. For example, we believe that organised crime will exploit the ban. The regulations will make it easier for rogue traders to hide and sell illicit, unregulated tobacco products. According to the Populus survey [3] 61% agree that a display would risk increasing the black market in cigarettes. Early evidence from Ireland, where a display ban was imposed in July 2009, also bears this out.”

- ENDS -

For further information and/or interviews, please contact:

Dirk Vennix, TMA Director of Communications
24 Hour Press Line: 020 7544 0111
Mobile: 07872376748
Email: dvennix@the-tma.org.uk

Notes to the Editor:

[1] The TMA is the trade association for tobacco companies that operate in the UK. Our members are British American Tobacco UK Ltd (www.bat.com), Gallaher Ltd (a member of the JTI Group of companies – www.jti.com), and Imperial Tobacco Ltd. (UK). (www.imperial-tobacco.com)

[2] EDM 885, ‘Display of Tobacco Products’, February 2009

“That this House acknowledges the hard work of small and independent retailers; congratulates them on the vital role they play in many diverse communities across the country; recognises the ongoing economic and commercial pressures threatening their viability and survival; is concerned that the regulatory burden placed upon them should be maintained at an appropriate level; expresses its concern that proposed measures to ban the display of tobacco products in small shops are not balanced, proportionate or firmly evidence-based; calls upon the Government to further consider the effects of the measures on the viability of small shops and the market in illicit tobacco; welcomes Government action to address illegal sales of tobacco; and urges the Government to pursue the most effective and proven measures by which under-18 year olds can be deterred from smoking.“

http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=37964&SESSION=899

[3] Populus conducted a survey of 1,001 adults in September 2009.

[4] The economic recession is likely to tempt more people to access cheaper smuggled product from unscrupulous black market traders, who do not care who they sell to and who do not ask for proof of age. There is also a danger that the government proposal to ban the display of tobacco products in shops will play into the hands of criminals trying to infiltrate the retail network.

[5] In 2006/7 the UK government estimated that up to 17% of cigarette and up to 59% of hand rolling tobacco consumption was smuggled. The revenue lost due to tobacco smuggling could be as much as £3.1 billion.

[6] TMA is fully committed to youth access prevention and agrees with the Government that children should not smoke and should be actively discouraged from doing so. The TMA is a principal stakeholder in CitizenCard (www.citizencard.com), the UK’s leading proof-of-age scheme [1.8m cards issued] and the No ID, No Sale (www.noidnosale.com) campaign operated by CitizenCard which promotes all PASS accredited (Government approved) Proof of Age / ID schemes. The NINS campaign has engaged over 130,000 retailers nationwide and created a culture in which young people expect to be asked to prove their age, and in which retailers accept only the correct ID. The key issue is that retailers must be able to establish the age of any potential customer before a sale is made. We fully support sanctions against those retailers who sell to young people, and welcome stronger enforcement of the law to prevent underage sales.

Christopher Ogden, Chief Executive of the Tobacco Manufacturers’ Association (TMA), said:

“This ban is unnecessary and unjustified.  It is also unwanted by a significant number of politicians from all parties [1] and by the retailers whose businesses will be adversely affected to no purpose.  There is no evidence to support the government stated objective that a ban would reduce youth smoking.

“We hope that common sense will prevail and the Bill will be amended when it reaches the House of Commons.  The last thing retailers need in the midst of recession is further regulation that will facilitate illicit trade and impact adversely on thousands of small businesses and the communities they serve.”

t: 020 7544 0115  m: 07790 060041 e: zwalker@the-tma.org.uk

1. The TMA is the trade association for the following tobacco companies that operate in the UK: British American Tobacco UK Ltd (bat.com), Gallaher Ltd, a member of JTI Group (JTI.com) and Imperial Tobacco Ltd. (imperial-tobacco.com).

2. TMA supports the retention of tobacco product displays and youth access prevention

•          The TMA completely agrees with the Government that children should not smoke and should be actively discouraged from doing so.  The TMA is a principal stakeholder in CitizenCard (www.citizencard.com), the UK’s leading proof-of-age scheme [1.9m cards issued] and the No ID, No Sale (www.noidnosale.com) campaign operated by CitizenCard which promotes all PASS accredited (Government approved) Proof of Age / ID schemes.

•          We fully support sanctions against those retailers who sell to young people, and welcome stronger enforcement of the law to prevent underage sales.

•          Displays allow adult consumers to make an informed choice based on availability, price and brand from the wide range of tobacco products on the market.

•          Tobacco is the most requested FMCG product in retail outlets, with approximately 11million smokers in the UK regularly buying tobacco products [2].

•          Concealing tobacco products from view will: make it easier for traders of smuggled product to blend it into the legal supply chain; will blur the distinction between the legal and illegal market by virtue of it being out of sight; is likely to increase counterfeiting; and, could increase the large illicit tobacco market. Up to 17% of all cigarettes and 59% of handrolling tobacco smoked in the UK already avoid duty resulting in a loss of up to £3.1 billion in tax revenue to HM Treasury [3]. The ban will hinder the pro-active work undertaken by TMA members, through their Memorandum of Understanding [4] with HM Revenue and Customs (HMRC), to assist HMRC and Trading Standards in detecting counterfeit tobacco products, as highlighted in the revised Tackling Tobacco Smuggling document [5] and which has led to a reduction of smuggling of genuine tobacco products.

3. EDM 885, ‘Display of Tobacco Products’, February 2009

That this House acknowledges the hard work of small and independent retailers; congratulates them on the vital role they play in many diverse communities across the country; recognises the ongoing economic and commercial pressures threatening their viability and survival; is concerned that the regulatory burden placed upon them should be maintained at an appropriate level; expresses its concern that proposed measures to ban the display of tobacco products in small shops are not balanced, proportionate or firmly evidence-based; calls upon the Government to further consider the effects of the measures on the viability of small shops and the market in illicit tobacco; welcomes Government action to address illegal sales of tobacco; and urges the Government to pursue the most effective and proven measures by which under-18 year olds can be deterred from smoking. http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=37964&SESSION=899

[1] EDM 885, February 2009

[2] General Household Survey plus Continuous Household Survey (Northern Ireland) 2006

[3] Measuring Indirect Tax Gaps – 2008. HMRC, November 2008

[4] Memorandum of Understanding was signed between HMRC and TMA’s member companies in 2006.

[5] Tackling Tobacco Smuggling Together Nov 2008 HMRC UKBA Chapter 1, 1.12 p2. announced in the Pre-Budget Report 24/11/08

Christopher Ogden, Chief Executive of the Tobacco Manufacturers’ Association (TMA), said:

“The TMA agrees with the government objective to reduce youth smoking but we continue to oppose a ban on tobacco display.  The Health Bill proposal is not supported by robust evidence, will not achieve the stated public health benefit and could have serious unintended consequences, such as disproportionately affecting small businesses and increasing illicit trade.

“Poor regulation is counterproductive and there are other initiatives open to the government that would reduce youth smoking including better enforcement of existing minimum age laws, support for proof-of-age campaigns such as ‘No ID, No Sale’, and tackling illicit trade.

“As the Health Bill makes its passage through Parliament we urge government to allow the tobacco provisions in the Bill to receive a proper debate and to ensure due account is taken of the widespread political and business opposition.  Over 100 MPs, including nearly 50 Labour MPs, signed Early Day Motion 1904 ‘Small Shops and Restrictions on Point of Sale Displays of Tobacco Products’ calling on the Government not to impose a ban on retailers who are worried that current economic pressures already threaten the survival of their businesses and want assurances that regulation will not be increased without sufficient evidence [see full text in Notes to Editors 4].

“Furthermore, Conservative and Liberal Democrat Shadow Health Ministers have publicly stated that they are against a ban and leading retailer bodies have voiced serious concerns about the potential impact on their members.”

- ENDS -

For further information please contact
Zoe Walker, TMA Corporate Affairs Manager
t: 020 7544 0115
e: zwalker@the-tma.org.uk
m: 07790 060041

Notes to Editors:

1. The TMA is the trade association for tobacco companies that operate in the UK.  Our members are British American Tobacco UK Ltd (bat.com), Gallaher Ltd, a member of JTI Group (JTI.com) and Imperial Tobacco Ltd. (imperial-tobacco.com).

2. Consultation on the Future of Tobacco Control (CFTC)

The TMA submission to the CFTC can be found on the TMA website: www.the-tma.org.uk.  The revised CFTC Report was published on 9 January 2009: http://www.dh.gov.uk/en/Consultations/Responsestoconsultations/DH_091382 and the original CFTC Report was published on 9 December 2008.  The respondents were listed under Annex 1.  The Department of Health  (DH) omitted to name 89 organisations who responded in the original Report and had to issue a revised Report on 9 January following criticism.   The overall total is now 473 respondents, compared to the original total of 384, meaning 18% of respondents were not included originally by the DH.  In addition, there were tens of thousands of pre-written / postcard submissions, mainly from organisations funded by DH.

3. Tobacco product displays are not predictors of youth smoking. The DH itself stated in the CFTC that predictors of smoking are factors such as: age and sex, home environment, drug use, drinking alcohol, truancy and exclusion from school. It rightly does not list retail displays of tobacco products as a factor and states that the supportive evidence is not conclusive.

In Iceland and some Canadian provinces where product displays have been banned there has been no resulting reduction in smoking consumption. The TMA and its three member companies provided clear evidence from both Canada and Iceland [1] which shows that display bans have not impacted the consumption of cigarettes among young people. Yet nowhere does that evidence appear in the CFTC Report.  The Canadian Tobacco Use Monitoring Survey shows that removing point of sale display has indeed coincided with a fall in smoking prevalence rates amongst 15 to 19 year olds – from 22% in 2002 to 15% in 2007 although this is a decline of only 7%, not 10% as quoted by the Department of Health.  In addition, it is the figure for Canada as a whole, while the ban has not been imposed simultaneously across Canada as a whole, but on a province-by-province basis.  In Saskatchewan, which imposed a display ban in 2002 the decline was exactly the same, and in Manitoba which imposed a ban in 2004, the drop from 2004 to 2007 was only 1%, a lower decline than for Canada overall.

4. EDM 1904 ‘Small Shops and Restrictions on Point of Sale Displays of Tobacco Products’, November 2008

That this House acknowledges the hard work of small and independent retailers; congratulates them on the vital role they play in the many diverse communities across the country; recognises the ever-present economic and commercial pressures threatening their viability and survival and is concerned that the regulatory burden placed upon them should be maintained at an appropriate level; expresses its concern that any new measures to restrict the display of tobacco products in small shops should be balanced, proportionate and firmly evidence-based; and calls upon the Government to commit to open, full and genuine consultation with all affected and interested parties to examine the effect of any such proposals on the viability of small shops, the market in illicit tobacco and the impact on competition; further welcomes Government action to address illegal sales of tobacco; and urges the Government to continue to pursue the most effective and proven measures by which under-18s can be deterred from smoking. http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=36225&SESSION=891

5. TMA is fully committed to youth access prevention

•The TMA completely agrees with the Government that children should not smoke and should be actively discouraged from doing so.  The TMA is a principal stakeholder in CitizenCard (www.citizencard.com), the UK’s leading proof-of-age scheme [1.8m cards issued] and the No ID, No Sale (www.noidnosale.com) campaign operated by CitizenCard which promotes all PASS accredited (Government approved) Proof of Age / ID schemes.
•The key issue is that retailers must be able to establish the age of any potential customer before a sale is made.  We fully support sanctions against those retailers who sell to young people, and welcome stronger enforcement of the law to prevent underage sales.
•The NINS campaign has engaged over 130,000 retailers nationwide and created a culture in which young people expect to be asked to prove their age, and in which retailers accept only the correct ID.
6. TMA supports the retention of tobacco product displays at point of sale in shops

•Displays allow adult consumers to make an informed choice based on availability, price and brand from the wide range of tobacco products on the market.
•Above the counter displays are necessary to keep products secure, speed up transaction times and reduce the need for extended verbal communication.
•Tobacco is the most requested FMCG product in retail outlets, with approximately 11million smokers in the UK regularly buying tobacco products [2].
•Concealing tobacco products from view will: make it easier for traders of smuggled product to blend it into the legal supply chain; will blur the distinction between the legal and illegal market by virtue of it being out of sight; is likely to increase counterfeiting; and, could increase the large illicit tobacco market. Up to 17% of all cigarettes and 59% of handrolling tobacco smoked in the UK already avoid duty resulting in a loss of up to £3.1 billion in tax revenue to HM Treasury [3]. The ban will hinder the pro-active work undertaken by TMA members, through their Memorandum of Understanding [4] with HM Revenue and Customs (HMRC), to assist HMRC and Trading Standards in detecting counterfeit tobacco products, as highlighted in the revised Tackling Tobacco Smuggling document [5] and which has led to a reduction of smuggling of genuine tobacco products.
•Point of sale display is necessary for fair and undistorted competition between manufacturers and between retailers.
7. TMA supports the continued use of tobacco vending machines with age-verification access

•Access to cigarette vending machines should be controlled in order to prevent sales to children and the National Association of Cigarette Machine Operators (NACMO) Code of Practice on the positioning of machines should be strictly adhered to.
•The TMA believes that vending operators and manufacturers need to identify and utilize systems that enable the purchase of tobacco products by adults only.

[1] Statistics Iceland 2007. In Iceland where the ban was imposed the rate of decline in smoking has not increased
[2] General Household Survey plus Continuous Household Survey (Northern Ireland) 200
[3] Measuring Indirect Tax Gaps – 2008. HMRC, November 2008
[4] Memorandum of Understanding was signed between HMRC and TMA’s member companies in 2006.
[5] Tackling Tobacco Smuggling Together Nov 2008 HMRC UKBA Chapter 1, 1.12 p2. announced in the Pre-Budget Report 24/11/08

Over one hundred MPs, including nearly 50 Labour MPs, signed an Early Day Motion calling on the Government not to impose a ban on retailers without sufficient evidence.  Conservative and Liberal Democrat Shadow Health Ministers are also opposed to a ban.  In addition, leading retailer bodies across the country expressed their opposition.

Chris Ogden, Chief Executive of the TMA, said:

“The TMA is opposed to tobacco display bans which are not supported by robust evidence, will not achieve the stated public health benefit and will have serious unintended consequences.

“We want to help tackle underage smoking and there are plenty of effective ways of doing so.  But, as we have reminded all those in Government, a display ban is not one of them. It hasn’t worked in other countries and it won’t work here.  In Iceland and Canada display bans have not reduced the consumption of cigarettes.

“A ban on the display of products will also blur the distinction between the legal and illegal market by virtue of it all being ‘out of sight’ and will play into the hands of criminals trying to infiltrate the retail network. Smuggling continues to account for up to 17% of cigarette and 59% of handrolling tobacco consumption, resulting in a loss of up to £3.1 billion to HM Treasury. The efforts of tobacco companies and HMR&C have led to a reduction of smuggling of genuine tobacco products but the display ban proposal is likely to increase counterfeiting and illicit trade. Displays are necessary for fair and undistorted competition between manufacturers and between retailers.

“There are more effective alternatives to prevent under 18s from accessing cigarettes.  Proof of age schemes should be better supported, the law on underage sales more strongly enforced and the government should crack down on the illegal trade in tobacco.

“Adults who choose to smoke should have the right to buy tobacco, and retailers the right to display and sell what is, after all, a legal product. We welcome sensible proposals that will assist in preventing the sale of tobacco to children under the age of 18, which are fair, balanced, proportionate and above all, evidence-based.”

1. The TMA is the trade association for tobacco companies that operate in the UK. Our members are British American Tobacco UK Ltd (bat.com), Gallaher Ltd, a member of JTI Group (JTI.com), and Imperial Tobacco Ltd. (imperial-tobacco.com).

The TMA submission to the Consultation on the Future of Tobacco Control (CFTC) can be found on the TMA website: www.the-tma.org.uk

2. Fully committed to youth access prevention

• The TMA completely agrees with the Government that children should not smoke and should be actively discouraged from doing so.  The TMA is a principal stakeholder in CitizenCard (www.citizencard.com), the UK’s leading proof-of-age scheme [1.8m cards issued] and the No ID, No Sale (NINS) (www.noidnosale.com) campaign operated by CitizenCard which promotes all PASS accredited (Government approved) Proof of Age / ID schemes.
• The key issue is that retailers must be able to establish the age of any potential customer before a sale is made.  We fully support sanctions against those retailers who sell to young people, and welcome stronger enforcement of the law to prevent underage sales.
• The NINS campaign has engaged over 130,000 retailers nationwide and created a culture in which young people expect to be asked to prove their age, and in which retailers accept only the correct ID.

3. Support the retention of tobacco product displays at point of sale in shops

• Displays allow adult consumers to make an informed choice based on availability, price and brand from the wide range of tobacco products.
• Above the counter displays are necessary as they keep products secure, speed up transaction times and reduce the need for extended verbal communication.
• Tobacco is the most requested Fast Moving Consumer Good (FMCG) product in retail outlets, with approximately 11million smokers in the UK regularly buying tobacco products . A display ban could increase the large illicit market in tobacco, where 17% of all cigarettes and 59% of rolling tobacco smoked in the UK already avoiding duty resulting in a loss of up to £3.1 billion in tax revenue to HM Treasury
• Concealing tobacco products from view will make it easier for traders of smuggled product to blend it into the legal supply chain.

4. Support the continued use of tobacco vending machines with age-verification access

• Access to cigarette vending machines should be controlled in order to prevent sales to children and the National Association of Cigarette Machine Operators (NACMO) Code of Practice on the positioning of machines should be strictly adhered to.
• The TMA believes that vending operators and manufacturers need to identify and utilize systems that enable the purchase of tobacco products by adults only.

• Tobacco product displays are not predictors of youth smoking. Indeed, the Department of Health itself states in the CFTC that predictors of smoking are factors such as: age and sex, home environment, drug use, drinking alcohol, truancy and exclusion from school. It rightly does not list retail displays of tobacco products as a factor.
• Where product displays have been banned, in Iceland and some Canadian provinces, for example, there has been no resulting reduction in smoking consumption.
• Point of sale display is necessary for fair and undistorted competition between manufacturers and between retailers.

Christopher Ogden, Chief Executive of the Tobacco Manufacturers’ Association (TMA), said:

“There are other initiatives open to the government that would reduce youth smoking such as reducing youth access to tobacco products through enforcing minimum age laws and tackling illicit trade.

“A ban on the display of products will also blur the distinction between the legal and illegal market by virtue of it all being ‘under the counter’. This will hinder the operations being undertaken by HMRC and Trading Standards to tackle counterfeiting and undermine the considerable investment made by TMA and its member companies in pro-actively providing HMRC with effective tools to prevent tobacco smuggling.

“It does not make sense financially either. In today’s economic climate and challenging circumstances for the average smoker, particularly in disadvantaged areas, we are concerned that they will be tempted to buy more illicit tobacco, with subsequent loss of taxation. This could increase the large illicit market in tobacco, where over a quarter of all cigarettes and two thirds of rolling tobacco smoked in the UK already avoid duty. (1)

“While we welcome any sensible proposals that will assist in preventing the sale of tobacco to children under the age of 18, any proposals should be supported by credible evidence that they would address the government’s stated objectives. “

- ENDS -

Notes to Editors:

1. The TMA is the trade association for tobacco companies that operate in the UK. Our members are British American Tobacco UK Ltd (bat.com), Gallaher Ltd (gallaher-group.com), and Imperial Tobacco Ltd. (imperial-tobacco.com).

The TMA made its submission to the CFTC which can be found here.

2. Tobacco control legislation

• The raising of the age of sale for tobacco products from 16 to 18 years is now UK-wide since 1^st September 2008.
• The restriction orders provided for under the Criminal Justice and Immigration Act 2008 will not be brought into effect until April 2009, meaning that after this date retailers who flout the minimum age law could have their right to sell tobacco suspended.
• No date has yet been announced for the bringing into effect of the significant additional enforcement powers made available by the Regulatory Enforcement and Sanctions Act 2008.

3. Fully committed to youth access prevention

• The TMA completely agrees with the Government that children should not smoke and should be actively discouraged from doing so. The TMA is a principal stakeholder in (CitizenCard), the UK’s leading proof-of-age scheme [1.8m cards issued] and the (No ID No Sale) campaign operated by CitizenCard which promotes all PASS accredited (Government approved) Proof of Age / ID schemes.
• The key issue is that retailers must be able to establish the age of any potential customer before a sale is made. We fully support sanctions against those retailers who sell to young people, and welcome stronger enforcement of the law to prevent underage sales.
• The NINS campaign has engaged more than 130,000 retailers nationwide and created a culture in which young people expect to be asked to prove their age, and in which retailers accept only the correct ID.

4. Support the retention of tobacco product displays at point of sale in shops

• Displays enable adult consumers to make an informed choice based on availability, price and brand from the wide range of tobacco products.
• Point of sale display is necessary for fair and undistorted competition between manufacturers and between retailers.
• Above the counter displays are necessary as they keep products secure, speed up transaction times and reduce the need for extended verbal communication.
• Tobacco is the most requested FMCG product in retail outlets, with approximately 11million smokers in the UK regularly buying tobacco products. (2)
• Concealing tobacco products from view will make it easier for traders of smuggled product to blend it into the legal supply chain. The efforts of tobacco companies and HMR&C have led to a reduction of smuggling of genuine tobacco products but this display ban proposal is likely to increase counterfeiting and illicit trade.

(1) TMA estimates 2007

(2) General Household Survey plus Continuous Household Survey (Northern Ireland) 2006

• Prevention of those under the legal age of 18 years from accessing tobacco products;
• Retention of tobacco product displays at the point of sale in shops;
• The continuation of the sale of 10-packs of cigarettes;
• Continued use of tobacco vending machines with age-controlled access.

(The TMA’s key positions on the government’s proposals are given below in the Notes to Editors)

Chris Ogden, Director of the Tobacco Manufacturers’ Association (TMA), said:

“The TMA completely agrees with the Government that children should not smoke and should be actively discouraged from doing so. The vast majority of retailers in England are committed to upholding the law on age-related sales and we remain committed to retailer proof-of-age programmes such as ‘CitizenCard’ and ‘No ID, No Sale’ as the most effective way to stop children accessing cigarettes. We fully support sanctions against those retailers who sell to young people, and welcome stronger enforcement of the law to prevent underage sales.

“While we welcome any sensible proposals that will assist in preventing the sale of tobacco to children under the age of 18, any proposals should be supported by credible evidence that they would address the government’s stated objectives.

“We believe that any regulatory proposals on tobacco sales must strike a balance between pursuing public health policy objectives and allowing adults the freedom of choice to smoke and the right of retailers to display and sell a legal product. There is real concern from many stakeholders that some of the proposed regulations, such as display restrictions and a ban on 10s packs of cigarettes, could have serious unintended consequences, such as increasing an already large illicit market in tobacco.”

- ENDS -

Chris Ogden, TMA Director will be available for interviews on 30/31 May.

For further information please contact:

Dirk Vennix, Director of Communications
t: 020 7544 0109
m: 07872 376748
e: dvennix@the-tma.org.uk

Notes to Editors:

The TMA is the trade association for tobacco companies that operate in the UK. Our members are British American Tobacco UK Ltd (bat.com), Gallaher Ltd (gallaher-group.com), and Imperial Tobacco Ltd. (imperial-tobacco.com).

Key TMA Positions:

1. Fully committed to youth access prevention

• The TMA is a principal stakeholder in CitizenCard (citizencard.com), the UK’s leading proof-of-age scheme [1.7m cards issued] and the No ID, No Sale (NINS: noidnosale.com) campaign operated by CitizenCard which promotes all PASS accredited (Government approved) Proof of Age / ID schemes. The key issue is that retailers must be able to establish the age of any potential customer before a sale is made.
• The NINS campaign has engaged more than 100,000 retailers nationwide and created a culture in which young people expect to be asked to prove their age, and in which retailers accept only the correct ID.

2. Support the retention of tobacco product displays at point of sale in shops

• Displays enable adult consumers to make an informed choice based on availability, price and brand from the wide range of tobacco products.
• Point of sale display is necessary for fair and undistorted competition between manufacturers and between retailers.
• Above the counter displays are necessary as they keep products secure, speed up transaction times and reduce the need for extended verbal communication.
• Tobacco is the most requested FMCG product in retail outlets, with approximately 11million smokers in the UK regularly buying tobacco products. ^[i]
• Concealing tobacco products from view will make it easier for traders of smuggled product to blend it into the legal supply chain. The efforts of tobacco companies and HMR&C have led to a reduction of smuggling of genuine tobacco products but this proposal will is likely to increase counterfeiting and illicit trade.

3. The continuation of the sale of 10-packs of cigarettes

• 10-packs provide adult consumers with choice and are primarily purchased by adult smokers who wish to control their daily consumption.
• Within the UK, 2.5million people (20% of consumers) buy 10-packs. ^[ii]
• A ban is likely to encourage more low-income smokers to seek cheaper, smuggled 20 packs (both genuine and counterfeit) from illegal sellers who do not demand proof of age. Estimates show 27% of cigarettes and 68% of hand rolling tobacco consumed in the UK during 2007 were non-UK duty paid. Around 10% of this was counterfeit. Given the prevalence and availability of smuggled and counterfeit product in the UK ^[iii] the TMA believes that it would be particularly unwise to prohibit 10-packs.

4. Support the continued use of tobacco vending machines with age-verification access

• The TMA does not support the prohibition of vending machines, which would not only prevent legitimate access by adult smokers, but also force the closure of many small businesses with consequent job losses.
• Access to cigarette vending machines should be controlled in order to prevent sales to children and the National Association of Cigarette Machine Operators (NACMO) Code of Practice on the positioning of machines should be strictly adhered to.
• The TMA believes that vending operators and manufacturers need to identify and utilize systems that enable the purchase of tobacco products by adults only.

The companies had applied for a judicial review of the POS Regulations because they believe the Regulations will prevent meaningful or effective communication, which would provide smokers with a reasonable level of information about the products before they buy and will inhibit competition in the market, particularly from foreign manufacturers.

Announcing his decision Mr Justice McCombe said he had rejected the claimants’ application on the grounds that the Secretary of State for Health was entitled to a wide discretion in deciding how best to meet the public health objective and that, taken in the context of the wider scheme of advertising restrictions, the POS Regulations were not disproportionate to that objective.

Tim Lord, Chief Executive of the Tobacco Manufacturers’ Association (TMA), the majority of whose members were party to the action, said that a decision on whether to continue with an appeal will be made in due course.

Mr Lord said “We remain very concerned that these Regulations will prevent smokers from receiving a reasonable level of information about products. However, the companies will work closely with retailers to implement the Regulations by the date set.”

Ends

Notes to editors:

This press release represents the views of our principal members who are Imperial Tobacco, Gallaher Tobacco and British American Tobacco.

Contact:
TMA
Mrs Gill Silverman
e gsilverman@the-tma.org.uk
t 020 7544 0108 Bottom of Form

The companies claim that the Regulations prevent any form of meaningful or effective communication with adult smokers and will not allow smokers to receive a reasonable level of information about the products before they buy.

Tim Lord, chief executive of the TMA, said: “We consider that the Regulations are disproportionate and illegal. They contain unreasonable restrictions on providing information at the point of sale and will inhibit competition. Regrettably, our attempts to resolve the matter through dialogue with the Department of Health have come to nothing, so we have no option but to resort to legal action.”

The companies participating in the legal action are:

BRITISH AMERICAN TOBACCO (UK) LIMITED
GALLAHER LIMITED
IMPERIAL TOBACCO LIMITED
PHILIP MORRIS LIMITED
SOCIÉTÉ NATIONALE D’EXPLOITATION INDUSTRIELLE DES TABAC ET ALLUMETTES (“SEITA”)
CHERWELL TOBACCO LIMITED

Notes:

1. The Regulations restrict advertising of tobacco products at point of sale to one advertisement per retail outlet that does not exceed the size of an A5 sheet of paper, of which 30 per cent must be a health warning surrounded by a black border of between 3 mm and 4 mm. The advertisement would have to be attached to a gantry or other fixed display unit. The restrictions apply regardless of how many gantries or display units are located on the premises. There are also substantial limitations on content of the advertisement.

2. The main grounds of the companies’ legal challenge are that the regulations violate their freedom of commercial speech by virtue of the restrictions imposed and create obstacles to trade between Member States because in practice they will favour UK producers and incumbent UK and international brands.

3. British American Tobacco (UK) Limited, Gallaher Limited and Imperial Tobacco Limited are principal members of the TMA. Philip Morris Limited is an associate member of the TMA.

4. SEITA is a large manufacturer of tobacco products in Member States such as France and Spain whose products are sold in the UK.

5. Cherwell Tobacco is the second largest vending machine operator in the UK. The strict regulations on point of sale will affect vending machines.

The draft regulations permit static, single or multiple advertisements, measuring in total no more than A5 in size, of which 30 per cent must be a health warning. Only one advertisement per outlet is allowed, regardless of how many gantries or display units are located on the premises.

Tim Lord said: “We are surprised and disappointed at the degree of restrictions, which are disproportionate and inconsistent with the consultation process. They prevent any form of meaningful or effective communication with customers.

The Regulations take no proper account of the vast differences between the various types of retail outlets which sell tobacco products, and the way in which these products are displayed.

Furthermore, they are so restrictive that, given the number of different tobacco products on sale, they will stifle competition between the different manufacturers.