Australia's High Court has upheld the world's toughest laws on cigarette marketing, dismissing a legal challenge from tobacco companies in a major test case.
Tobacco giants British American Tobacco, Britain's Imperial Tobacco, Philip Morris and Japan Tobacco challenged the laws passed by parliament to ban logos and branding appearing on cigarette packages in Australia's High Court. They said the new rules were unconstitutional because they infringed on their intellectual property rights.
The seven judges did not agree and so from December 1 this year all cigarettes and tobacco products must be sold in plain olive green packets without branding. The packets will carry graphic health warnings.
The laws are in line with World Health Organisation recommendations and the case is being closely watched by other countries attempting to cut cancer rates.
Australian Attorney-General Nicolas Roxon said the ruling was a "watershed moment for tobacco control around the world" and called on other governments across the world to "stand up to fight big tobacco." Mrs Roxon's father, a smoker, died of cancer when she was ten. She said after the ruling:
The decision ends any domestic challenges to plain packaging inside Australia. British American Tobacco claimed that the measures would fuel a black market for branded cigarettes.
Industry analysts are worried plain packaging laws could spread to emerging markets like Brazil, Russia and Indonesia and threaten sales growth.
The World Health Organisation estimates more than 1 billion people around the world are regular smokers, with 80% of smokers coming from emerging markets in low and middle income countries.
Australia wants to cut the number of smokers from around 15 percent of the population to 10 percent by 2018. Authorities say smoking kills around 15,000 Australians a year.