tobacco giant tackles new bill 
07 May 2008

Philip Morris SA, a division of Philip Morris International, one of the world’s largest tobacco companies, urged MPs to change the Tobacco Products Control Amendment Bill’s definitions of advertising and promotion, arguing that the present wording would prevent legitimate communication within the industry.
It includes “all commercial communication or action brought to the notice of any member of the public” in the definition of advertisement, and says promotion includes “the practice of fostering awareness of positive attitudes towards a tobacco product or manufacturer for the purposes of selling”.  “If strictly interpreted, a phone call, a price list or a job advertisement would have tobacco companies falling foul of the law,” Philip Morris spokesman Neetesh Ramjee told MPs.

He called for the bill to be amended to include a definition for the tobacco trade, and for this group to be exempted from the advertising and promotion restrictions.  Philip Morris also called for changes to the bill’s controls of point of sale advertising.

The existing laws say signs for tobacco products must be placed within 1m of a point of sale. The signs are allowed to show price and availability, and must carry health and minimum age warnings. The bill proposes limiting such advertisements to a single sign at the point of sale.  A single notice for all tobacco products would prejudice new market entrants and well-established firms an unfair advantage, said Steen Hjortholm, Philip Morris southern and east Africa manager.

Philip Morris disinvested from SA in the 1980s, and only began selling its products here again in 2004. It has about 5% of the market, and faces stiff competition from British American Tobacco and JT International. “Each tobacco company should be allowed one sign at point of sale that would list its brands and the price of the products,” said Hjortholm.  Philip Morris supported the government’s plans to tighten tobacco regulation, he said. “We want a clear concise framework that levels the playing field.”

In addition to tighter controls on the advertising and promotion of tobacco products, the bill proposes the introduction of picture-based health warnings, banning misleading descriptions such as “mild” and “low tar”, increasing the minimum smoking age to 18, and increasing the penalties for transgressing the regulations.
For example, employers who allow smoking in areas that are supposed to be smoke-free will face maximum fines of R50000, a five-fold increase on the current R10000 penalty.

Tamar Kahn, www.businessday.co.za