First News
Volume:8, Number:03
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Business & Finance 2

Philip Morris Cigarettes Lost Plain Packaging Case Against Australia

The tobacco manufacturer Philip Morris will be forced to pay millions of dollars (around USD50 million) in legal fees to Australia after its failed case against plain packaging laws. Big tobacco companies have fought vigorously against the Gillard government’s plain packaging laws since they were introduced in 2011. By banning logos and distinctive-colored cigarette packaging, Australia’s laws went further than the advertising bans and graphic health warnings introduced in many other countries. Philip Morris, Imperial Tobacco, and Japan Tobacco quickly attempted to have the laws overturned through a constitutional challenge in the high court, which they lost in 2012. Philip Morris Asia then took a case to the permanent court of arbitration in 2012. It tried to use the conditions of a 1993 trade agreement between Australia and Hong Kong to argue a ban on trademarks breached foreign investment provisions. The corporate giant was criticized by the court, which found the case to be “an abuse of rights”.

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