Philip Morris Files Suit Challenging Uruguay's Graphic Cigarette Packaging

Cigarette maker claims that packaging rules violate treaty law, among other complaints.

September 18, 2014

MONTEVIDEO, Uruguay – If you buy cigarettes in Uruguay, be prepared to see graphic images of decaying teeth, premature babies and horrific hospital scenes. The country requires that about 80% of the cigarette packaging space be devoted to medical warnings and anti-smoking imagery, but now Philip Morris is fighting back.

The company believes that the Uruguay regulations are a violation of a treaty law and is suing the country for $25 million. “Philip Morris is saying that the percentage of warning labels that are required on cigarette packs in Uruguay goes beyond what is reasonable to protect people from the harmful effects of smoking,” Alexandra Hall, a reporter based in Uruguay's capital city, Montevideo, told National Public Radio, as reported by FOX News. “The company says that the warning labels leave no space for legally protected trademarks.”

Another of the cigarette maker’s complaints is about a law that stipulates that a vendor couldn't have any variation of a single brand sold in any store — meaning that someone who sold Marlboro Reds could not sell Marlboro Lights or Marlboro Menthols as well.

Last year, the cigarette maker won the right to take its case against Uruguay’s marketing restrictions and graphic health warnings to the World Bank’s arbitration tribunal, the International Center for Settlement of Investment Disputes (ICSID).

Experts suggest that this case may be a bellwether for how other battles across the globe will fair. Philip Morris and other tobacco companies are fighting Australia’s plain packaging rules for cigarettes, and Thailand’s move to implement health warnings covering 85% of packets has also drawn the attention of the company.

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