UK Court Strikes Down Tobacco Industry Challenge to Plain Packaging -- Update

By Saabira Chaudhuri

LONDON--A legal challenge by the tobacco industry against plain packaging in the U.K. has failed, opening the door for cigarette packs to be stripped of branding across the country and setting a precedent for other countries in Europe.

Starting Friday, any cigarettes produced for sale in the U.K. will have to follow plain-packaging rules under which cigarettes will be sold in uniform packs stripped of distinctive logos and colors, and adorned with graphic health warnings.

The U.K. parliament in March voted to ban branding on cigarette packs starting in May 2016. In response, the tobacco industry mounted a legal challenge, with British American Tobacco PLC, Imperial Brands PLC, Japan Tobacco International and Philip Morris International Inc. filing suits with the High Court in London last summer alleging that plain packaging violates U.K. and European law.

"Clearly, we are disappointed with today's decision, as we believe our legal arguments are strong," said a spokesman for Imperial. He said the company has been preparing for plain packaging for three years and is "confident that our brands and product portfolios are well positioned."

The High Court ruling comes just days after the European Court of Justice upheld the 2014 Tobacco Products Directive, which among other things paved the way for countries to put in place plain-packaging laws.

"This landmark judgment is a crushing defeat for the tobacco industry and fully justifies the government's determination to go ahead with the introduction of standardized packaging," said Deborah Arnott, chief executive of antismoking body Action on Smoking and Health.

Matthew L. Myers, president of the Washington-based Campaign for Tobacco-Free Kids, described the ruling as a "tremendous victory for public health," adding that it "represents a critical step in the growing movement for countries to include plain packaging as part of their comprehensive approach to reducing tobacco use."

Governments in a string of countries have been turning to plain packaging to discourage smoking. France recently passed legislation to require plain packaging starting in May. Australia, Ireland and Hungary have also passed plain-packaging laws. A BAT lawsuit against Australia in 2012 was unsuccessful. A total of 20 countries are looking at plain-packaging regulation, according to Wells Fargo analyst Bonnie Herzog. The U.S.'s free-speech laws make plain-packaging legislation all but impossible there.

Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com

(END) Dow Jones Newswires

May 19, 2016 08:24 ET (12:24 GMT)

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