Convenience stores join legal challenge for tobacco display ban in England

Convenience stores in London have joined leading tobacco companies in seeking a judicial review over Government plans for a tobacco display ban in shops in England.

The ACS (Association of Convenience Stores) claims the legal proceedings will cause confusion and is calling for a delay on the ban’s implementation.

The Health Act 2009 requires cigarettes, cigars, pipe and roll-your-own tobacco to be hidden from view in England, Wales and Northern Ireland from October 2011 in large retailers and October 2013 in smaller stores.

Portland Food and Wine, which operates six London convenience stores, and Harendra Bhatt, who owns one store in North London; have teamed up with British American Tobacco, its UK subsidiary and German cigarette maker Tobacco Management & Consulting Company, to challenge the ban.

Imperial Tobacco and Japan Tobacco International (JTI) have also submitted applications for a judicial review.

Michelle Healy, general manager at British American Tobacco UK Limited, said: “The display ban will damage both competition and the livelihoods of tens of thousands of small businesses by imposing high compliance costs on them. Driving the legal trade from public view will also play into the hands of illegal traders.

“These unwelcome effects are unjustified as there is no credible evidence that it will reduce smoking rates in the UK.”

British American Tobacco believes the display ban will prevent manufacturers from communicating to consumers the most basic product information and is anti-competitive under EU law as it will be impossible to tell consumers about new products available for sale.

The supplier said many newsagents and convenience stores have protested strongly against the ban because they are worried about loss of trade to supermarkets - which smokers may perceive as stocking more brands - or to counterfeit and smuggled cigarettes in a flourishing black market.

They are also concerned about costly shop point-of-sale refits and the impact on efficient customer service and security.

Hemang Patel of Portland Food and Wine said: “We are responsible retailers and we do not sell to minors. Why are we the ones being punished like this simply for selling a legal product? The display ban regulations are complex, will be difficult to comply with and our efficient customer service will suffer.”

The ACS has written to Ministers calling on them to delay the planned implementation dates claiming the prolonged uncertainty makes it impossible for retailers to prepare for the changeover of thousands of shops to the new regulations.

ACS chief executive James Lowman said: “Local shops will suffer most from the confusion created by this legal uncertainty. The timeframes for implementation were already tight and now every one of the 60,000 plus shops selling tobacco in the UK will have to put their plans on hold. If the ban eventually gets the go ahead the additional time pressure will cause major disruption and skyrocketing costs.

“The implementation dates proposed are now wholly unrealistic and must be pushed back by at least a year.”

The ACS said it will consider what action to take in respect of the legal action itself.

Lowman added: “Local shops oppose the display ban which will be disruptive and costly and is not based on credible evidence. We have not sought to take legal action on this issue ourselves, but we are considering our options. Our members face the biggest burdens if the ban goes ahead and we have a responsibility to ensure that local shop concerns are properly considered by the Court.”

Convenience stores are worried sales will migrate to supermarkets under a display ban