Australian court throws out cigarette plain packaging challenge

The defeat in Australia will make it harder for companies including Japan Tobacco International (JTI), Imperial Tobacco and British American Tobacco (BAT) to prevent Britain from adopting its own tough anti-smoking measures.

Under laws that come into effect this December, Australia will become the first country to require cigarettes to be sold in drab, olive packets with graphic health warnings and no logos, The Telegraph reports.

The laws have been tipped to trigger an “olive revolution”, with similar measures being considered in Britain, Canada, New Zealand, China, France, India, South Africa, Norway and Uruguay.

Australia’s High Court yesterday dismissed a challenge by BAT, Imperial Tobacco, Philip Morris and JTI.

The companies claimed that the laws unlawfully extinguished the value of their trademarks without providing compensation.
In Australia, tobacco groups are still fighting the laws through two other separate cases. Philip Morris Asia is suing Australia for breach of an investment treaty with Hong Kong. The Ukraine, Honduras and the Dominican Republic have taken a case to the World Trade Organisation, claiming the legislation breaches Australia’s commitment under global trade rules.