Generic Cigarette Packaging Likely to Trigger A Price War, Says Expert

Generic Cigarette Packaging Likely to Trigger A Price War

, Says Expert

The bold move of the United Kingdom Government to ban logos and imagery from cigarette packages could lead to "risky unintentional consequences" that include a dramatic price war, which may virtually result in growth of smoking rate, the University Of Abertay Dundee Doctor Of Law has warned.

Dr Enrico Bonadio said that banning the only marketing strategy tobacco companies currently have may have one of two effects either to see health warnings become more obvious and more efficient to smokers, or oblige tobacco companies to struggle on price alone to maintain their market share.

Vending cigarettes in generic, unbranded packages was introduced as a bill earlier this year ito Australian government, which is set to implement this ordinance in 2012.

Australian move has encouraged the Government of Scotland urging to follow that action and a consecutive pledge to require generic cigarette packaging from the UK Head of Health Department Andrew Lansley being part of a comprehensive new strategy of public health. In early December the latest White Paper pledged that a Tobacco Control Plan is set to revealed soon.

Dr Bonadio admitted that reducing cigarette smoking and prompting smokers to get rid of their habit is an undoubtedly remarkable public health objective, as the dangers related to cigarette smoking have been comprehensively proven. Banning logos may be a highly effective means of lessening the appeal of cigarettes to adolescents.

However, Dr Bonagio believes that using generic cigarette packaging to further reduce smoking is a more than risky move. Australia could face significant lawsuit from leading tobacco companies and banning that last marketing option could oblige tobacco giants to reduce prices to protect their market share. The move also presents a risk of a growth in counterfeit products.

Leading tobacco companies might lobby member states of the World Trade Organization (WTO) to fight against that move, citing huge violation of trademarks and intellectual property rights.

It could result in litigation between countries. In case the WTO does decide that intellectual property is violated by prohibiting logos on cigarette packets, this would require member country to avoid implementing plain packaging laws.

Dr Bonadio noted that the largest tobacconists have already criticized Australia's move and the UK pledge to change the legislation. If these influential multinational corporations were able to succeed in lobbying a member state of the World Trade Organisation, the aftermath would be tremendous.

"They have to act with especial care, to guarantee that public health is protected without intellectual property rights being violated. Everyone is willing to see improved public health, yet even the best plans might have risky unintended effects", Dr Bonadio added

The plan was introduced by the previous UK Labour government, but later turned down. Research on the effect of branding on cigarette smoking has proven unconvincing, what was acknowledged by Labour's former Health Secretary Alan Johnson.

The complete research on the plain packaging effects by Dr Enrico Bonadio of Abertay University can be found in December issue of the European Journal of Risk Regulation.

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