28 Jun 2011

Tobacco giant to sue Australia over packaging plan

9:12 am on 28 June 2011

Tobacco firm Philip Morris has launched legal action against the Australian government over its plan to introduce brandless packaging for cigarettes.

The federal government says taking the brand name off packets will help reduce smoking rates, the BBC reports.

The government is putting through what it claims are the toughest anti-smoking measures in the world.

Cigarettes would be sold in plain packaging without any company logos and with all the brand names written in the same bland font.

Philip Morris claims the removal of its logo and packaging will adversely affect and devalue its intellectual property.

The company said it had no other option and that the legal challenge had the potential to win billions of dollars of compensation if the proposals come into effect next year.