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Tobacco Act Disadvantages

Decent Essays

Despite the benefits that were intended to achieve for society with its implementation, the Tobacco Plain Packaging Act had a great disadvantaged: the tobacco industry. So, just a few days after this piece of legislation was ratified, the manufacturer headquartered in Geneva JT International sued the Commonwealth of Australia to the High Court on December 15th 2011. At the same time, the British American Tobacco Group (BAT) started a different judicial process with the same aim: put an end to the TPP Act. These actions were also supported by other companies in the industry such as Philip Morris Limited, Imperial Tobacco Australia Limited and Van Nelle Tabak Nederland. JT International, particularly known for the manufacturing of Wiston and Camel, two of its global flagship brands, argued in its statement of claim that the new law passed by the Parliament involved an acquisition of its property. They stated that their rights in the trademarks and their get-up rights were property and thus, the TPP was not only illegal but also unconstitutional because it contravened the Article 51 (xxxi) of the Australian Supreme Law. Therefore, the piece of legislation approved in December 2011 was invalid and had no effects. Japan Tobacco International also ought to keep to Section 15 of the TPP which stated that the “Act does not apply to the extent (if any) that its operation would result in an acquisition of property from a person otherwise than on just terms”. The Commonwealth of Australia replied in its statement of defense JTI’s arguments. They recognized that the trademarks were property but they rejected to recognize that status to the get-up rights said to be associated with them. They also replied to JT International SA that, in any event, both trademark and get up rights were susceptible to federal regulation through laws like the Tobacco Plain Packaging Act. In addition, the Commonwealth pleaded that the products of that company and other tobacco groups were bad for the public interest and that therefore, they had a commitment to the society and that their actions were based on a rational and cogent basis. After these procedural steps, JT International demurred in reply to the Commonwealth’s defense arguing

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