Tobacco images spark new warnings

The Tobacco Plain Packaging Act 2011 is again clouding the way forward for tobacco retailers when it comes to complying with new requirements for Tobacco Health Warnings. The Federal Government through its competition regulator, the ACCC, has been given this message during consultation with Australia’s 6,600 petrol convenience outlets, which face crippling fines for non-compliance, despite their minimal level of control over the outcomes.

The Australasian Convenience and Petroleum Marketers Association (ACAPMA), made this known in a letter, sent at the request of the Competition and Consumer watchdog. The submission seeks to inform the ACCC of the operational realities faced by retail fuel outlets in the sale of regulated tobacco products, specifically concerning the rotation of Tobacco Health Warnings under the Competition and Consumer (Tobacco) Information Standard 2011 (the Standard).

ACAPMA’s correspondence reviewed the current regulatory environment before exploring the operational issues faced under the framework at a retail level. It concluded with a set of recommendations, which the Association believe achieve the policy objectives of the Act and the Standard, while recognising the role of retailers in the supply of tobacco products.

“The submission does not seek to explore the efficacy of the Act, nor to undermine what the Government believe is a coherent policy stance on the health of Australians in this area,” said Nic Moulis, ACAPMA CEO.

“Based on the operational realities for retailers’ we have concerns about the coverage of the Act, specifically relating to requirements under the Standard, including the rotation of Tobacco Health Warnings.

“The Association’s five recommendations, if adopted, would go a long way to achieving compliance, while limiting the risk of retailers’ having million dollar fines imposed on them.”

The Standard requires the rotation of two distinct sets of approved Tobacco Health Warnings, which are prominently included on the front and back of retail packets, every 12 months. The stated aim of the rotation is to ensure that the consumer remains challenged by the graphic health warnings, thereby potentially increasing the effectiveness of the warnings themselves. While requiring new warnings every year, the Standard provides for a transition period, from 1 August until 1 December, where both sets of Tobacco Health Warnings can be supplied.

The wording of the Standard requires all parties who “supply” tobacco to ensure that each year only the current and approved images are made available for sale. The use and definition of supply and supplier within the Standard captures retailers in this requirement.

Mr Moulis explained that capturing retailers as suppliers has ACAPMA concerned, “Our first recommendation is to remove the retailer from the definition of ‘supplier’ under the Standard, as they do not have the power to control the images on packets that are to be received in a tobacco delivery or any recourse under the law if supplied with non-compliant stock.

Background:

The Australasian Convenience and Petroleum Marketers Association (ACAPMA) is a not-for-profit employer organisation that has represented the interests of businesses in the petroleum distribution and petrol convenience industries for over 38 years.

As the leading association and national peak body responsible for the development and growth of the petroleum distribution and petrol convenience retail industries, ACAPMA members include over 90 percent of the 120 businesses that operate in petroleum distribution and storage, while representing – through direct ownership, operation or supply – over 3,500 service stations. ACAPMA’s membership profile in the main is independent small-to-medium businesses operating in metropolitan as well as regional and rural Australia.
Australasian Convenience and Petroleum Marketers Association