Wednesday, July 8, 2009

Health care advocates applaud new tobacco laws

Health care advocates and anti-smoking groups are applauding the new law that gives the FDA authority over tobacco. They say its a big step that was 50 years in the making.

In 1966 the first health warning was printed on a pack of cigarettes. It was pretty mild saying only that smoking may be hazardous to your health. Today the warnings are much more graphic and there is a new sheriff regulating the industry. The Food and Drug Administration. Health officials and anti-smoking advocates credit Connecticut Senator Chris Dodd with leading the fight to make that happen. The FDA will crack down on misleading terms like "light" and "mild" that infer a tobacco product is somehow safer. It also goes after marketing to children.

Sen. Chris Dodd, D-Connecticut: When you eliminate candy flavored cigarette, advertising within a thousand feet of a schoolyard, allowing these promotional advertisements using cartoon animals... Don't have any illusions about what the tobacco industry is involved in. You don't provide candy flavored cigarettes for adults.

Experts feel cutting down on the number of kids who start using tobacco will greatly reduce the number of adults who smoke in the long run.

Dr. Keri Wallace, CT Children's Medical Center: 12 percent of your 7th and 8th graders have used some form of tobacco. That's really unacceptable and it gets even worse because when they get to high school its about 28 percent.

Tuesday, July 7, 2009

Cigarette companies kicked out of UN-backed meeting on tobacco smuggling

A U.N.-backed meeting on tobacco smuggling has barred cigarette companies from attending for fear they will try to influence delegates, participants said Thursday.

More than 130 countries agreed late Wednesday to expel the tobacco industry from the rest of the weeklong meeting of parties to the 2005 Framework Convention on Tobacco Control, which the U.S. has signed but yet to ratify.

Governments are considering a range of measures to crack down on contraband cigarettes, including a ban on Internet sale of tobacco products and a crackdown on smuggling through duty free zones.

"We (the governments) decided not to permit the tobacco industry to enter the meeting because they could interfere in the negotiations," said Justino Regalado Pineda, the head of Mexico's National Office for Tobacco Control.

Wednesday, July 1, 2009

Institutional tobacco support through TEKEL

TEKEL has a 70 percent share of the domestic Turkish cigarette market, and is the largest tobacco exporter in Turkey. It oversees, among other things, the manufacture, import and sale of tobacco, as well as carrying out research to improve quality, productivity and operational efficiency.
The two most important products produced and sold domestically are filtered cigarettes and Turkish raki (an alcoholic aromatic liquor).

According to Schmitz et al. , tobacco policy has had a positive impact on value addition, has enhanced welfare, and has favoured producers of poorly selling, low quality tobacco grown on hilly 82 Tobacco in Turkey terrain, the government making up the difference between the announced and market price through deficiency payments. Consumer prices are lower because of subsidization of TEKEL’s tobacco processing. However, producers in general benefit only negligibly. Because of TEKEL’s large market share and its ties to government, it acts as a price leader in the industry. Producers, as a last resort, can sell their tobacco to TEKEL.

Wednesday, June 24, 2009

Final report

Defendants argue that because the government did not disclose its final corrective statements proposal until its posttrial proposed remedial order, the district court denied Defendants due process by ordering a version of that remedy without providing Defendants adequate notice and an opportunity to respond.
Although Defendants purport to press this objection in a general fashion “with respect to many other 70 remedies imposed by the district court,” they state it with sufficient specificity for our consideration only with regard to corrective statements.
The exact content of the statements is yet to be determined and so is not before us at this stage.

Wednesday, June 17, 2009

Knowledge and intent

The predicate acts of racketeering in this case were all acts of mail or wire fraud, which require specific intent to defraud. Defendants challenge the district court’s conclusion that they acted with specific intent, arguing that the district court applied an impermissible “collective intent” standard and that the government did not present any evidence to support a finding of specific intent under the correct formulation. Corporations may be held liable for specific intent offenses based on the “knowledge and intent” of their employees.

Because a corporation only acts and wills by virtue of its employees, the proscribed corporate intent depends on the wrongful intent of specific employees. Thus, to determine whether a corporation made a false or misleading statement with specific intent to defraud, we look to the state of mind of the individual corporate officers and employees who made, ordered, or approved the statement.

Tuesday, June 9, 2009

Old Marlboro

Tuesday, June 2, 2009

Health warnings on tobacco packs

Weak health warnings on tobacco packs – or no warnings at all – continue to be the global norm. As a result, the least expensive way to convey the health risks of tobacco consumption to users and potential users is largely unused. Of the 176 countries that provided information on pack warnings, only 15 countries, covering 6% of the world’s population, require pictorial warnings (covering at least 30% of the principal surface area) on packs of cigarettes and other tobacco products, and only five countries, representing 4% of the world’s population, meet all criteria for pack warnings.
These countries, which are in different regions and have diverse social characteristics and income levels, show what can and should be done. Of the countries that provided information, 77 do not mandate any warnings at all. There are 25 countries that require pack warnings covering less than 30% of the main display areas; most of these warnings are very small. Another 45 countries have warnings that cover 30% of the main display areas, and only 29 have warnings larger than 30% of the main display areas.
Warnings are often weakly worded, vaguely stating that tobacco is bad for health but without mentioning specific diseases that it causes. Only 66 countries have laws that ban the use of deceptive tobacco industry marketing terms, such as “light” and “low-tar”, from tobacco packaging. More than 40% of the world’s population lives in countries that do not prevent the tobacco industry from using these and other misleading and deceptive terms.

Monday, May 25, 2009

Menthol cigarettes risks

The factual evidence of excessive toxicity and health risks related to it, have been corroborated by Prof. Dudi Avni, chairman of the cancer research institute at Tel Aviv Medical Center. Other studies performed by American and Australian scientists have revealed that African Americans are more prone to addiction caused by menthol cigarettes than White Americans.

The late woman, who started lighting up at the tender age 17 perished away three years ago. As her husband said, she initially smoked usual cigarettes but switched to menthol cigarettes 10 years ago. She got hooked on menthol cigarettes, smoking up to more than a pack of Montana Menthol each day. She was not aware that menthol cigarettes are more addictive than other cigarettes. Her husband also said that their daughter also smokes, copying her mother’s habits, and she made several attempts to give up, but they were unsuccessful.

Monday, May 18, 2009

Gauloises Blondes Cigarettes


Gauloises Blondes en 30 existe en 4 decors differents--Le paquet change, pas la cigarette! Ce n'est que le debut d'une longue serie!
At the beginning of the 21st century Gauloises issued a set of six snazzy packs for hip smokers. The back of each of the flip-top boxes pictured a drawing of a Gauloises box being kept in the most interesting places. Two of my favorite packs from the set are pictured below.

Tuesday, May 5, 2009

Camel Cigarette Clown


1964 Camel Cigarette Clown Smoking in Dressing Room Ad
Camel Time is pleasure time! Time for clean-cut taste, honest enjoyment, easygoing mildness. Moments seem to brighten up every time you light one up. Make it Camel Time right now! THE BEST TOBACCO MAKES THE BEST SMOKE!

Thursday, April 30, 2009

Individuals smoke one brand

Individuals smoke one brand consistently, so that they become identified with it. A guest who discovers that his host smokes the same brand considers this a personal flattery. If a young lady changes to the brand of an admirer, he understands that he has surely made an impression. Here is the experience of one young man, and his interpretation of it: "I was very fond of a girl. She was giving a farewell party before leaving the country. I didn't have any idea how I stood in her affection. The only clue was that at her party she had my brand of cigarettes.
I always felt that that was in deference to me." "My brand" has a special significance, as if it were a part of the smoker's credo and personality. A Package of Pleasure A new pack of cigarettes gives one a pleasant feeling. A full, firm pack in the hand signifies that one is provided for, and gives satisfaction, whereas an almost empty pack creates a feeling of want and gives a unpleasant impression. The empty pack gives us a feeling of real frustration and deprivation. During the seventeenth century, religious leaders and statesmen in many countries condemned the use of tobacco. Smokers were excommunicated by the Church and some of them were actually condemned to death and executed.
But the habit of smoking spread rapidly all over the world. The psychological pleasures derived proved much more powerful than religious, moral, and legal persuasions. As in the case of the prohibition experiment in the United States, repressive measures seem to have aroused a spirit of popular rebellion and helped to increase the use of tobacco. If we consider all the pleasure and advantages provided, in a most democratic and international fashion, by this little white paper roll, we shall understand why it is difficult to destroy its power by means of warnings, threats. This pleasure miracle has so much to offer that we can safely predict the cigarette is here to stay. Our psychological analysis is not intended as a eulogy of the habit of smoking, but rather as an objective report on why people smoke cigarettes.
Perhaps this will seem more convincing if we reveal a personal secret: We ourselves do not smoke at all. We may be missing a great deal.

Thursday, April 23, 2009

Tax hike on smokeless tobacco and cigarettes

From bad to worse

“Otherwise, we’ll simply take a bad budget year and make it worse,” said press secretary Dan Turner.

Barbour also wants a special tax hike on smokeless tobacco and cigarettes made by companies that don’t pay Mississippi millions of dollars like others annually do to settle the 1994 lawsuit Mississippi filed against the industry for sickening smokers.

Watson and Kirby — joined by the four other members of the House-Senate panel appointed to negotiate a compromise — met for about two hours in a state Capitol committee room full of lobbyists, health advocates and reporters.

The session — the first since the Legislature began a lengthy recess April 1 — provided negotiators a chance to render the public more information about their positions on House Bill 364, but it didn’t move them closer to an agreement.

Return to stalled session

They did not set their next meeting date. The House and Senate are tentatively scheduled to return in two weeks to resume their stalled legislative session. They decided to take a break April 1 so legislators can further assess how federal stimulus funds will impact the state budget.

The Legislature’s main task upon its return is to fund state government for the fiscal year that begins in July.

The move to increase the cigarette tax is being largely propelled by legislators’ desire to keep car tag prices from going up.

The state Tax Commission voted last week to decrease the discounts people have been receiving for their car taxes since 1994. The car tag credit would decline from 5.5 percent to 3 percent.

The commission has been warning since January this cut would happen beginning in July as the state’s car-tax reduction fund runs out of money. This is being caused by a decline in automobile sales. Sales tax revenues are diverted to counties to replace local taxes lost because of the car tag credits.

Thursday, April 16, 2009

Cigarettes ad from 1980

The ad from 1980 again seems innocuous. It sports a young woman wearing a lumberjack type check jacket. On her sweatshirt or jersey one can determine a face, most likely that of an overweight, middle-aged, male. He is looking downwards toward the young womans stomach and genital area. The caption is 'Light my Lucky'. Take into account that there would seem to be 'lettering' on the right cuff of her jacket and again directly underneath the cuff and the caption appears to be a double entendre. These are not very distinct on this reduced illustration and are more likely to be evident on the original ad. Note also the texturing of the rocks at the bottom of the ad alongside the cigarette pack. The allow plenty of scope to construction of the letters S and X once such a topic 'enters ones mind' .

Thursday, April 9, 2009

Montecristo "D"

In 2005 we have received the Montecristo "D" - a Limited Edition Lonsdale or 8-9-8 size in unique 3-4-3 packaging containing just 10 cigars. A perfect gift for the Montecristo fan.
In 2006 after five successful releases of Limited Editions (2000, 2001, 2002, 2003, 2004 and 2005), Habanos SA has decided decided this year to repeat one of the most popular vitola in the past Montecristo Robusto. The specially aged, dark wrappers for this year's release are from 2003 crop and each size is offered in a distinctly different presentation from its predecessor.
In 2007 a New Baby has been born Petit Edmundo, a small, fat cigar to appeal to those who require a short but involving smoke.

Thursday, April 2, 2009

Famous smoking product

If there is any place on our globe where magnificence is true value, then it is indubitably the Hellenic Republic, or Greece, a kingdom of myths and legends. It was, perhaps, an stimulation for bringing Karelia Tobacco Company to this part of the world.
This world famous smoking product producer was founded by George and Stathis Karelias, in 1888, in Kalamata city, as a family-run business. Now, this cigarettes manufacturer is acclaimed as one of the major tobacco companies in Greece and the owner of most exclusive world brands.
The features that made Karelia company known on the global tobacco market are its respect for time-stabled quality and modern technologies. The superior equipment (the most advanced in Europe) allows producing 16,000 cigarettes per minute or more than 15 billion cigs per year.
Every tobacco brand created by Karelia gives smokers a taste that only genuine cigarettes own. The Karelia’s unique pack design and of product presentation is also very significant.

Wednesday, March 25, 2009

Sobranie one of the oldest tobacco brand

Sobranie brand are produced in Europe by the Gallaher Group. Sobranie of London was established in 1879, when cigarettes had just become fashionable in Europe. The original cigarette were made in the Russian tradition, and are still produced at Old Bond Street in London. Sobranie is one of the oldest tobacco brands in the world. Sobranie was the supplier of royal courts of Great Britain, Spain, Romania, and Greece.Premium varieties include the evening-out styles Sobranie Cocktail and Sobranie Black Russian, which are produced in Ukraine and as of 2005 in Russia itself. Sobranie produces several styles geared specifically for ladies, some slimmer than standard cigarettes and others brightly colored.Cocktails are five separate bright pastel shades with a gold foil filter, and are the same ring gauge as standard cigarettes, unlike Nat Sherman's Fantasias, which are slimmer and use deeper, primary colors. Black Russians are black with a gold foil filter. While both Cocktail and Black Russian variants are emblazoned with the Russian imperial eagle and use blends suited to Russian tastes, this is a different blend than Cocktails. Sobranie is one of the most expensive cigarette brands in Russia, and is considered to be a brand comparable to Dunhill cigarettes.

Wednesday, March 18, 2009

Marlboro collection design

Tuesday, March 10, 2009

Davidoff - worldly recognized brand

It isn’t necessary to be expert to discern that brand name Davidoff cigarettes had most luxury things. There are finest cigars, brilliant cigarettes and excellent pipe tobacco. Beautiful accessories that are embodiment of elegance and lavishness of best quality are also produced under Davidoff trademark.
Everything that is produced under brand Davidoff are worldly recognized as of premium quality. All tobacco products of this company brand are shadowed under same brilliance star.
Mentioning trade name “Davidoff” first that comes into mind is luxury. This is referred to Davidoff cigarettes too. They are beyond doubt from superior tobacco that was created for smoking persons that wish to taste beauty of life.
Blend of Davidoff cigarettes is of time-experienced quality that becomes a prominent international tobacco brand name of this famous firm.
Emotions that offer this cigarette brand are full of outstanding fragrance that is accompanied by delicate flavor. Taste of Davidoff smoking cigs you will never forget or compare.
It is very hard to render luxuriousness and elegance of Davidoff smoking tobacco using words from nowadays vocabulary. This cigarette brand will be undeviating placed on premier rank on tobacco markets from entire world forever.
The prototype of Davidoff tobacco brand is allied in elegant hard packs that are differentiated in colors and smoking taste. This premium tobacco is presented in variety of Davidoff Classic, Davidoff Lights and Davidoff Slim Lights.
These smoking cigarettes are different in color, but not in gorgeousness of quality.

Wednesday, March 4, 2009

First step to change the image of Camel cigarettes

Smokers have noticed the changes that have taken place with one of the oldest tobacco brands - Camel Cigarettes. Pack with a camel changed its clothes. This is the first step the company Japan Tobacco Int. to change the image of these cigarettes.

Now replaced macho, gonyayuschemu jeep through the jungle and prodirayuschemusya , "came the modern individualist" - successful, able to enjoy life, despite its rapid rhythm.
Although camels left themselves cigarettes will now be "unisex" for a successful urban dwellers. A new outdoor advertising shows a young man who sits by closing their eyes and hands on a pack of Camel spin.

In the "female version" girl lies on her back on the stack of cigarettes. As the director of marketing JTI in Russia and Belarus Antoine Ernst, "the launch of the new Camel Cigarettes has already taken place in Spain, Italy, France and Germany. There, representatives of JTI were very satisfied launch programme, they declare grand successes.

In Germany, concludes a new Camel Cigarettes caused such a significant transformation, which the market has not seen a long time ago. Camel Cigarettes and above was one of the fastest growing brands in Western Europe - in one of the most stable markets.
The growth in sales volume for was about 7% - it is quite a lot, given the absolutely planar development of the world tobacco market. With a new acceleration, we believe that the Camel Cigarettes, as a tobacco brand in the world number three, will be able to markedly strengthen its position ".

Monday, February 23, 2009

Marlboro PACK RACING

Philip Morris repeatedly displays a limited release to the market cigarettes Marlboro PACK RACING in a bright red package.

This is another Marlboro cigarettes brand advertising campaign, aimed at fans of Formula 1.

The fact is that the previous rounds in the previous season in F1 pack cigarette Marlboro PACK RACING enjoyed great success, it is in anticipation of the new season, Philip Morris did not miss the chance to increase sales of their products.

Wednesday, February 18, 2009

Image of Vogue cigarettes

The image of direct contact events cost is high, but the costs of such actions are justified, coupled with a strong PR-support. That is, even if the activities have enough for a narrow range of people, through secular chronicle of these events will learn the mass of readers.

However, in order to the effect of these events has not been in vain, they need to be repeated again and again, with each subsequent event should surpass the previous one. As Sundukova believes that the record itself as an expert in secular, glamorous events, it is necessary to maintain fan interest very windy fashion.

Own minds and are trying to fashion rivals BAT. For example, Virginia brand of cigarettes produced Philip Morris, this year became one of the sponsors of Russian Fashion Week. A Korea Tobacco & Ginsen actively promoted Esse cigarettes during Moscow Fashion Week.

Yet at the Vogue Cigarettes has produced better make friends with the "secular crowd." "chapurinskogo style heroine - the new girl romantic time, confident and purposeful… Vernye satellites her life - transparent lace favorite cigarette smoke Vogue Cigarettes and rustle of the finest silk" - characterizes so "their girl" designer Igor Chapurin.

An estimated AC Nielsen, Vogue Cigarettes is now more than 30% of the market and is ahead of its opponents. True, the results are still OEMs within the statistical error: the market share of 1.03% of the total cigarette market in September last year rose to 1.28% in January 2005 - the first in 30 key cities in Russia, where the focus was support for the brand.

Tuesday, February 10, 2009

Newport cigarettes catalog

Wednesday, February 4, 2009

Imperial start a new financial year

Makes pleasing start to new financial year
* Not immune to economic situation, but resilient
* Weak pound, if continues, to have positive effect * Shares down 0.7 percent
Britain's Imperial Tobacco, the world's fourth-biggest buy cigarettes maker, said it had made a pleasing start to its financial year, and while it was not immune to the economic situation it was resilient. Imperial, with brands including Lambert & Butler, West and Gauloises, said on Tuesday that should current foreign exchange rates, such as the pound's weakness, continue they would have a positive effect on its 2009 results.
"Overall, this has been a pleasing start to the year. While we will not be immune from the current economic situation, we will be resilient," Chief Executive Gareth Davis said ahead of the company's annual shareholder meeting.
Imperial said trading from October to December was in line with management's expectations for the year to end-September.
Morgan Stanley analyst Eileen Khoo described the update as positive and showing much more than foreign exchange gains.
"Imperial's trading statement highlights ongoing resilience, particularly in cigarettes, driven by stable consumer trends, share gains, pricing and continued emerging market growth."
Imperial shares were down 0.7 percent at 1,838 pence at 0812 GMT in a flat London stock market.
In Britain, Imperial said the 2008 duty-paid cigarette market declined by 4 percent to 45 billion cigarettes, and its market share slipped slightly to 45.7 percent in the 12 months to end-December from 45.9 percent in the year to September 2008.
In Germany, market volumes declined by 2 percent to 87 billion cigarettes in 2008 with the group's market share largely steady at 27.5 percent, while in a Spanish market which grew by 1 percent to 90 billion cigarettes in 2008 the group's market share was again largely steady at 37 percent.
Last year, Imperial acquired the Franco-Spanish Altadis in late January for 12.6 billion euros to add brands like Gauloises and Fortuna. It then launched a 4.9 billion pound rights issue in May to help part-fund the deal, with the rest covered by debt. (Reporting by David Jones; Editing by Dan Lalor)

Thursday, January 22, 2009

E-cigarettes given wary eye by officials

Fontana resident Gregory Puetz sells electronic discount cigarettes, a stainless steel contraption with liquid nicotine that is powered by a rechargeable battery.
It looks like a cigarette and when users puff on it, an LED lights up as if the cigarette is burning.
But when the user exhales, what looks like smoke is actually water vapor.
Puetz is not the only person selling these faux cigs.
There has been a significant increase of electronic cigarettessales following the introduction of smoking bans similar to those being weighed in Rancho Cucamonga, according to the World Health Organization.
The City Council is mulling tighter restrictions that would ban smoking in outdoor areas such as Victoria Gardens and restaurant patios.
This is where Puetz said he believes his product fits in. Smokers can continue their nicotine habit without exposing others to second-hand smoke because the "e-cigarette" has no tobacco or carcinogens.
Puetz, 45, an engineer, has been selling this new nicotine tool part-time since May.

Friday, August 8, 2008

Holiday cigarettes to go up in smoke

The tradition of bringing back hundreds of cheap cigarettes from holidays abroad is about to go up in a puff of smoke.

Proposals are currently being examined which would see a dramatic increase in the tax on tobacco throughout the EU region. The moves are being made after research by the World Bank showed that burning a hole in people's pockets is the best way to reduce the level of smoking.

Experts say that the proposed increase would cut the number of smokers by an average of 10pc over the next five years.

It is thought that changes will have the biggest impact in Poland where they expect more than 20pc to give up as a result of price increases.

The proposal outlined by Taxation Commissioner, Laszlo Kovacs, is for a gradual increase in EU minimum taxation levels on cigarettes and fine-cut tobacco up to 2014.

It would also remove loopholes that allow some cigarettes or fine-cut tobacco to be presented as cigars, cigarillos or pipe tobacco and so benefit from a lower tax rate.

The plan also aims to bring tobacco taxation levels in line across all 27 EU member states.

At the moment, the difference in taxation can be as high as 600pc leading to intra-EU tobacco smuggling especially in the new member states.

The level of smuggling varies across the EU and accounts for up to 9pc of the EU tobacco market. But in some major markets this is as high as 20pc. The countries most susceptible to illegal tobacco are those closest to Russia and other markets that do not impose high tax on cigarettes.

Mr Kovacs said it would also make the taxation rules more transparent, and create a level playing field for manufacturers and give flexibility to member states to set minimum taxes.

Friday, July 18, 2008

Cigarettes advertised as 'light' or 'low-tar'?

Tobacco companies could no longer imply government approval when they advertise cigarettes as "light" or "low-tar" under a proposal announced Tuesday.

The Federal Trade Commission wants to bar manufacturers from using a test known as the "FTC method" to claim a cigarette is low in tar or nicotine. Its proposal says the FTC no longer believes that measurement accurately gauges risk and does not want smokers to think some cigarettes are safe.

"We want to clarify the FTC's position," says associate director Mary Engle. "This test method does not have our stamp of approval." The proposal would rescind a 1966 policy that allowed tobacco ads to cite tar and nicotine amounts "per FTC method."

"This would represent a fundamental change" for the FTC if it is adopted, says Matt Myers, president of the Campaign for Tobacco-Free Kids. He says the FTC could sue tobacco companies if they continue to claim their cigarettes are safer based on the test.

"It fully withdraws any implication the FTC approves tar and nicotine numbers or believes some cigarettes are safer than others," Myers says.

Monday, July 14, 2008

Quit Smoking Calls Tripled

When the price of cigarettes topped ten dollars a pack at some city outlets last month, thousands of smokers knew it was time to quit. An analysis of data from the city’s 311 line showed the number of calls for help to quit smoking was three times higher during the week the price increase went into effect compared to the same week in the previous year. More than 2,700 New Yorkers called for help in the week starting June 2nd compared to about 850 in the same period in 2007. In addition to the 2,700 callers, about 1,600 smokers got free nicotine patches on June 3rd at sites across the five boroughs.

New York City cigarettes are now the priciest in the nation, costing a pack-a-day smoker at least $3,000 a year. The Health Department’s June campaign showed smokers how many daily necessities or seemingly unattainable luxuries can be bought with this savings, from daycare and laundry to a vacation or a shopping spree.

“Most smokers want to quit,” said Dr. Thomas R. Frieden, NYC Health Commissioner. “And the extra push of a higher price results in many smokers stopping smoking forever. Thanks to this measure, tens of thousands of New Yorkers will live healthier lives.”

Increasing the price of cigarettes has proven to be the most effective way to motivate New Yorkers to quit. Tax increases in 2002 contributed to a five year 21% drop in adult smoking and a 52% drop in smoking among New York City public high school students, as announced earlier this year. The new state tax increase of $1.25 is expected to cut the number of smokers significantly and to save tens of thousands of lives.

Fined In Tobacco Probe

LONDON - The UK's Office of Fair Trading said Friday that it has reached early resolution agreements with six companies in which they have admitted engaging in unlawful practices in relation to retail prices for tobacco products in the U.K., and have agreed to pay individual penalties which come to a combined maximum of GBP173.3 million before discounts.

The companies are Asda, First Quench, Gallaher, One Stop Stores (formerly named T&S Stores), Somerfield, and TM Retail.

Friday's agreements result from a process following the OFT's Statement of Objections issued in April 2008. This set out the OFT's proposed findings that two tobacco manufacturers and eleven retailers had variously engaged in one or more unlawful practices in relation to the retail prices of a number of tobacco products in breach of the Competition Act 1998.

The OFT has now concluded early resolution agreements with these six parties, each of which has admitted liability in respect of all of the infringements alleged against it, and each of these parties will receive a significant reduction in the financial penalty that might have otherwise been imposed on condition that it continues to provide full co-operation with the OFT.

A number of the six parties had previously applied to the OFT for leniency, and the total penalties the parties have agreed to pay if all leniency and early resolution discounts are given is GBP132.3 million, rather than the pre-discount penalties total of GBP173.3 million. A further company, Sainsbury's, was the first to apply to the OFT for leniency and will receive complete immunity from financial penalty if it continues to co-operate fully.

The investigation against The Co-operative Group, Imperial Tobacco, Morrisons, Safeway, Shell and Tesco is continuing. These parties have an opportunity to make representations to the OFT on its proposed findings.

The OFT will consider these carefully, along with the evidence in the case as a whole, before reaching any final decision as to whether the law has been breached.

Friday, July 4, 2008

Nothing but smoke and mirrors


The $1-per-pack increase in the state cigarettes tax is retroactive.
Odd, isn’t it, how a tax cut is never retroactive, only an increase is. But then, we don’t have tax cuts around here anymore, do we? This is how it works now in the bluest state: The Legislature needed an extra day to decide which corporate loopholes to close, mainly because so many lobbyists were buzzing around, shouting, “Another round over here!”
But there was one thing that all the solons could agree on:
Smokers must pay more. After all, smokers don’t have any amen chorus at the State House.
And by the way, you know that extra buck per pack all you smokers are going to have to pay? It’s really $1.05, because on top of the state excise tax on cigarettes, you’re going to have to add the 5 percent state sales tax.
A sales tax on an excise tax - how Massachusetts is that?
The tax increase applies to, as Sen. Cynthia Creem of Newton put it, “the existing stock of cigarettes in inventory at the time takes place.”
Wait a second. Isn’t this the same Legislature that held a meaningless hearing a couple of weeks ago to determine whether Big Oil was doing exactly the same thing with its stock of gasoline when the price of crude oil on the futures market goes up?

Monday, June 30, 2008

Tobacco Bill sets R1m fine for offenders

TOBACCO packaging offenders may face a fine of up to R1 million if they violate the new standards set out by the Tobacco Control Amendment Bill.

The Bill, which was passed by Parliament last Friday, calls for the removal of the words “light” and “mild” on cigarette packaging and it also recommends a R40000 increase in fines for people selling tobacco products to underage children.

It focuses on the trade and marketing of tobacco products and will prescribe the quantities of specific tobacco products to be sold in a single packages.

Leading the discussion in the National Assembly, Health Minister Manto Tshabalala-Msimang said the Bill was guided by the National Health Act and aimed to prescribe the conditions under which sponsorship by the tobacco industry and associated industries would be allowed.

The proposed recommendations include setting standards for packaging and labelling of tobacco products, including pictorial warnings and removing misleading package descriptions like “light” and “mild”.

The Bill carries stiff fines, including a R50000 fine for anyone found selling tobacco products to people under 18 years – a big increase from the existing R10000 penalty.

Tshabalala-Msimang said the main provisions of the Bill included controlling the ingredients in, and emissions from, tobacco products and increasing penalties for breaking the law. The publication of the Bill was approved by Cabinet in 2003.