Bid To Overturn UK Plain Packaging Rules Dismissed – BBC

From the BBC: Uniform packaging rules for tobacco will be introduced in the United Kingdom on Friday after a legal challenge against the new law was dismissed by the High Court.

The case was brought by four of the world’s biggest tobacco firms, Philip Morris International, British American Tobacco, Imperial Tobacco and Japan Tobacco International.

But Mr Justice Green dismissed all their grounds of challenge.

The government said it meant a generation would “grow up smoke-free”.

Two of the companies have said they will appeal against the ruling.

For the full BBC story, see here.

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Philip Morris issued this statement yesterday:

LAUSANNE, Switzerland–(BUSINESS WIRE)–May 19, 2016– Philip Morris International (NYSE/Euronext Paris: PM) today comments on an English Court’s decision to uphold the UK’s plain packaging regulations.

In May 2015, PMI and other companies sought a ruling on whether those regulations, which make it illegal to use registered trademarks, were a proportionate public health measure and compliant with English law.

Marc Firestone, Senior Vice President and General Counsel of PMI, said:

“We are certainly disappointed but understand that the English Court ultimately deferred to the Parliament’s judgment about cigarette packaging. Inexplicably, however, the Court’s reasoning relies heavily on a 2006 decision by a judge in the United States in a case about US law to which PMI was not even a party, and did not concern plain packaging.

In conflict with basic rules of procedure, the Court relied on that case even though it was not included in the parties’ bundles of authorities, and the parties were not asked to address it at the hearing. This surprising departure from basic principles of English law raises serious questions about the process, and undoubtedly presents strong grounds for appeal.

The broader question, however, is what actions make the most sense for the seven million adult smokers in the UK. Despite the important principles in this one case, we’ve decided not to appeal.

We will instead maintain our focus on efforts to develop and commercialize scientifically substantiated reduced-risk products that we firmly believe will ultimately benefit UK smokers and public health much more than plain packaging.”

Oliver Watson, managing associate at law firm Lewis Silkin, commented in a statement:

“Today’s decision had an air of inevitability to it, given the CJEU’s decision earlier this month.  The judicial review proceedings sought to challenge the Standardised Packaging of Tobacco Products Regulations 2015, which had been made in compliance with the UK’s obligations under the Tobacco Products Directive.  When the CJEU responded to Mr Justice Green’s questions by confirming that the Directive is fully valid, the claim that the UK’s implementing legislation unfairly expropriated BAT and Phillip Morris’ trade mark rights seemed doomed to fail. 

“In his judgment, Mr Justice Green acknowledged that the coming into force of the Standardised Packaging of Tobacco Products Regulations 2015 would involve a substantial limitation on the ability of tobacco product manufacturers to advertise or place branding on their products or product packaging.  In practical terms, brand names and variant names will still be permitted but other attractive features of tobacco product branding and advertising will have to disappear.  That said, it has already been reported that BAT is planning to appeal Mr Justice Green’s decision.

“Absent any successful appeal, there is a risk that the changes required by the Standardised Packaging of Tobacco Products Regulations 2015 could lay the industry and its consumers open to counterfeiters and, more widely, it will be interesting to see whether the required packaging changes have a significant effect on consumer behaviour – the data from Australia’s equivalent tobacco labelling regime suggests that its impact may be limited.”