Tobacco Industry News

International

Canadian companies settle cigarette smuggling case (Canada)
Two of Canada’s largest tobacco companies are to pay $1.15 billion (Canadian dollars) in criminal fines and civil penalties for aiding cigarette smuggling operations. In the late 1980s, rising cigarette taxes in Canada prompted an increase in cigarette smuggling from the U.S. In their guilty plea, executives from Imperial Tobacco Canada and Rothmans, Benson & Hedges acknowledged that they had been aware that cigarettes were being exported tax-free to U.S. wholesalers and promptly redirected back to Canada as contraband. According to estimates, the companies avoided paying between $3 billion and $10 billion (Canadian dollars) in taxes to the Canadian government by routing the cigarettes through the U.S. Rothmans recently announced that it will be bought out by Philip Morris for $2 billion (Canadian dollars) upon resolution of the legal case. Click here to read the full story.

Philip Morris International caught in Philippines in another concert sponsorship (Philippines)
Only weeks after Philip Morris International was criticized for its sponsorship of an Alicia Keys concert in Indonesia, the tobacco company is under fire for organizing another upcoming concert in the Philippines. Philip Morris has arranged a reunion concert of the popular group Eraserheads, and, to buy tickets, internet users are directed to the website for the Philippine subsidiary of Philip Morris. The Philippines Department of Health issued a warning to Philip Morris International that the company is violating the country’s tobacco laws. A law passed in July bans all forms of mass-media tobacco advertisements, and prohibits tobacco companies from sponsoring concerts and other events. Although it seems that Philip Morris is breaking the law in both regards, a Philip Morris International spokesperson contends that the company is in the right, saying, "We're not sponsoring the event. We organized it ourselves." The company maintains that the concert is only for adult tobacco users who verify their age. Click here to find out more from the related Campaign for Tobacco Free Kids press release. Click here for an update, Probe sought vs. Philip Morris for ‘organizing’ Eraserheads concert.

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