Product regulation

JTI's view is clear: tobacco products carry risks to health. Appropriate and proportionate regulation of the tobacco sector is both necessary and right. JTI believes that:

  • Minors should not smoke, and should not be able to obtain tobacco products. It is central to our Code of Conduct, our marketing practices, our operational policies and the way JTI does business;
  • Adult smokers should be appropriately informed about the health risks of smoking before they make the decision to smoke.

JTI supports regulation that conforms to the Organization for Economic Co-operation and Development's (OECD) principles of Better Regulation. These principles can be summarized as openness, participation, accountability, effectiveness, coherence and proportionality1 . See OECD Guiding Principles for Regulatory Quality and Performance, 2005.

Under these principles, regulation must be demonstrated by the government to be both necessary and appropriate to achieve a clearly articulated and legitimate public policy objective, and must:

  • Serve clearly identified policy goals, and be effective in achieving those goals;
  • Have a sound legal and empirical basis;
  • Be proportionate;
  • Minimize costs and market distortions;
  • Promote innovation;
  • Be clear, simple, and practical for users;
  • Be consistent with other regulations and policies;
  • Be compatible with competition, trade and investment principles.

JTI supports the use of Regulatory Impact Assessments (RIA). When conducted properly, an RIA is an effective tool for evaluating relevant evidence and assessing different regulatory options and alternatives to regulation, and for reviewing the impact of regulation after implementation.

All tobacco regulation should be evidence-based, practical, enforceable and competitively neutral.

JTI actively seeks dialogue with governmental authorities around the world regarding the regulation of its products and the tobacco industry. JTI has a right – and an obligation – to express its point of view regarding regulation that affects its products and the industry.

JTI has certain responsibilities when it is consulted or participates in the consultation process. Among these are:

  • To be open and transparent in our dialogue with governmental authorities;
  • To be respectful of each country's decision-making process;
  • To offer alternative solutions, whenever possible, that meet the principles of Better Regulation if issue is taken with a government's proposed course of action;
  • To provide credible evidence substantiating our positions and arguments.

JTI reserves its right to question, and if necessary challenge, regulation that is flawed, unreasonable, disproportionate, or without an evidentiary foundation, in order to protect its legitimate business interests.

JTI believes that regulation of the tobacco industry which conforms with the principles of Better Regulation can meet public policy goals while respecting the rights of all stakeholders and those of our shareholders.

JTI's responses to recent regulatory proposals can be accessed from the links provided here.

Last updated on 2012-03-26

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1
Similar principles have been adopted by a number of non – OECD countries.