Tobacco Companies Fight New Regulations By Threatening To Slash Prices
British and American Tobacco Australia (BATA) have threatened to slash the price of a packet of cigarettes, if the government implements its plain packaging policy. BATA laid down the gauntlet when its representatives said that more people would end up smoking if cigarette packaging is whitewashed.
BATA has argued that making cigarette packets a matt olive hue with plain typed labels on them would make them easier to counterfeit. Illegal importers of cigarettes could flood the market. Although cigarette branding may be seen to be attractive, it is also one way of preventing fake packaging being created.
If the cigarette market becomes saturated with counterfeit brands then legitimate cigarette manufacturers will be forced to cut their prices.
David Crow, BATA’s chief executive said that the price of cigarettes could be reduced by 50.0% in the near future, making cigarettes affordable to younger people. The new packaging may laws also infringe upon intellectual trademark laws.
It appears that you dance with the devil when you make a stand against the tobacco industry. It is difficult to know which direction policy should go if de-branding cigarettes will in fact make people smoke more. The Health Minister Nicola Roxon has said that she is ready for a hard fought battle with the tobacco industry.
There is no doubt that smoking related illnesses and deaths are a drain on the Australian state. If these problems could be prevented then the government could channel funds elsewhere.
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