Legal

State

New Jersey files suit against New York roll-your-own tobacco seller (NJ)
The New Jersey Division of Consumer Affairs has filed a lawsuit against a New York roll-your-own (RYO) tobacco seller for allegedly violating New Jersey’s Consumer Fraud Act through its advertisement and sale of RYO tobacco to New Jersey residents. The tobacco company claimed that it was legally permitted to sell tobacco products in New Jersey; however, the plaintiffs counter that selling the products is a violation of the Prevent All Cigarette Trafficking (PACT) Act, noting that the company is already on a federal noncompliant list. The Division of Consumer Affairs is requesting that the court put a stop to the tobacco company’s activities, institute civil penalties for their alleged violations, and reimburse the state for its costs related to the case. Read more here.

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National

Several US states weigh in on cigarette label suit
In December, attorneys general representing 24 states and territories filed an amicus brief with the U.S. Court of Appeals in Washington in support of the Food and Drug Administration's authority to require graphic warning labels to be placed on cigarette packages. The attorneys general assert in their brief that the FDA has the authority to require graphic warning labels on cigarette packaging, and the First Amendment of the Constitution does not preclude the government from requiring that cigarettes carry warning labels to inform consumers of the health risks associated with the products. The amicus brief also notes that existing warning labels have not been effective, and that the new graphic warning labels "reflect the unique magnitude of the problem they address, the deadly and addictive nature of the product, and the unparalleled threat this product and its marketing pose to America's youth." This fall, a U.S. district judge issued a preliminary injunction that will block the implementation of graphic cigarette package warnings until a legal challenge filed by several tobacco companies has been resolved. Under federal law, warning labels with graphic depictions of the health effects of smoking would have been required on all cigarette packages by September 2012. Click here to read more.

Judge won't delay decision in tobacco case
U.S. District Judge Gladys Kessler has decided not to delay her decision regarding the details of an order she issued as part of a 2006 ruling in which tobacco companies were convicted of racketeering. During the course of this twelve-year legal battle between the U.S. Department of Justice and major tobacco companies, Judge Kessler found the tobacco companies guilty of concealing the dangers of cigarette smoking for decades, and ordered that the tobacco companies pay for broadcast and print ads containing corrective statements to shed light on the health effects of smoking. Recently, the tobacco companies had requested that Kessler delay her decision regarding the parameters of the corrective statements until legal challenges related to new marketing restrictions and cigarette package warnings were resolved. In Kessler’s latest decision to move forward with issuing the parameters for the corrective statements, she notes that the aforementioned legal challenges “will not end (if ever) for an extremely long period of time.” Click here for the full story.

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International

Philip Morris accused of trickery in attempt to flout tobacco packaging legislation (Australia)
The Australian government has accused Philip Morris of corporate restructuring in an attempt to find new legal avenues to challenge the nation’s plain cigarette packaging laws. Philip Morris has launched a compensation claim against the government through its Hong Kong arm, Philip Morris Asia, claiming that Australia’s new cigarette packaging law breaches a trade treaty between Hong Kong and Australia. However, the Australian government says that the compensation claim should be thrown out because Philip Morris Asia did not have its shareholding in Australia until a year after the plain packaging policy was announced. Philip Morris acknowledges that they acquired shareholding after the plain packaging announcement. Read more here.

Indonesia will not appeal WTO ruling on US tobacco ban (Indonesia)
Indonesia will not appeal the World Trade Organization (WTO) ruling on the United States’ 2009 import ban of flavored tobacco. Indonesia says the U.S. ban of flavored cigarettes negatively impacted its export industry and favored products that were domestically produced in the U.S., since menthol-flavored cigarettes produced in the U.S. were not banned. Although the WTO Dispute Settlement Body’s ruling acknowledged the discriminatory nature of the U.S. ban on cigarette flavorings, it also said that the potential for the law to reduce youth smoking rates was a reason to keep the law in place. Although Indonesia will not appeal the ruling, the U.S. will appeal the WTO’s conclusion about the discriminatory nature of the ban and the judgment that kretek cigarettes and menthol cigarettes are similar products. Indonesia submitted a legal position paper this month, stating that the clove cigarettes ban put Indonesian-made cigarettes at a disadvantage to American-made cigarettes, and that the policy should have been raised with the WTO before the ban was introduced. Click here to read more, or click here to read about Indonesia’s written response to the WTO decision.

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