Geneva, (August 15, 2012) – We are disappointed with today’s High Court ruling that upheld the validity of the Tobacco Plain Packaging Act. The ruling demonstrates the narrowness of the legal grounds on which the Act was challenged, which are unique to Australia’s constitution. JTI will review the High Court’s opinion after it is released and further evaluate the situation.
JTI launched its constitutional challenge in December 2011 to protect its brands and trademarks from being acquired by the government without compensation. This right is guaranteed to all property owners by the Australian Constitution.
Other countries where plain packaging measures are under consideration have different legal systems. Today’s ruling is not indicative, much less determinative, of the constitutionality or legality of plain packaging in those jurisdictions.
Other contentious matters arising from Australia’s plain packaging law remain pending before the WTO where three countries (Ukraine, Honduras and Dominican Republic) have taken the first steps towards dispute resolution under WTO rules. JTI believes that these countries have strong arguments that the Australian plain packaging law violates WTO rules. JTI also believes that the Australian government should take heed of its international trade obligations before taking further action.
JTI will also monitor closely developments in other jurisdictions where plain packaging measures are under consideration. A substantial submission to the recent consultation in the UK on plain packaging was made in July 2012 and is available on jti.com. While public policy arguments relating to tobacco control were not before the High Court, JTI supports proportionate and evidence-based regulation of tobacco products. Plain packaging, however, is a manifestly disproportionate measure and there is no reliable evidence that it will achieve legitimate public health objectives. Its unintended consequences are serious. There are less restrictive, more proportionate ways of achieving such objectives