Philip Morris International (PMI) has expressed concern that regulations currently in place to have only one cigarette dispenser in establishments may do more harm than good and fuel the illegal cigarette trade.
The Tobacco Control Unit has enforced the prohibition to all vendors from having more than one cigarette dispenser in their business.
“While PMI supports all governments in their efforts to regulate the industry and reduce cigarette consumption, we acknowledge that this initiative may push consumers away from those retail outlets, which commercialize legitimate products, abide by the regulations and contribute to the economy”, Sheldon Wood, PMI General Manager for Trinidad & Tobago, stated.
“This initiative may increase illicit trade in cigarettes since consumers may prefer parallel retail outlets that do not adhere to the law. Time is a valuable resource, and most consumers will choose not to spend it in long lines in a supermarket where only one checkout has a dispenser. Since illicit trade evades taxation, regulations, and health warnings, it is possible this law enforcement may have a negative impact in tax revenues and public health.”, Wood added.
PMI´s concerns coincide with the ones issued by the Supermarkets Association of Trinidad and Tobago (SATT), who stated that while this plan has implications to frustrate the sale to consumers, it may increase parallel trade with roadside vendors.
SATT also stated that its members are considering coming out of the business of selling cigarettes altogether if this continues. This may force consumers to switch to illicit products. Other companies within the industry have shown the same concerns.
PMI also expressed the need to reconcile the ‘’One-Dispenser per Outlet’’ policy with the principles of fair trade, as regulated by the Fair-Trading Commission. ‘’The restriction of only one cigarette dispenser per outlet creates extreme commercial restrictions and may give rise to anti-competitive practices’’ explained Wood.
Despite these worries, PMI recommends all its clients to adhere to the provisions of the law. It also recommends to all adult smokers to stay away from illicit products. As of September 26th, the new Graphical Health Warnings have been applied on all legitimate cigarette packs, which allow adult smokers to distinguish them from the illicit ones.
PMI is a one of the leading international tobacco company engaged in the manufacturing and sale of cigarettes, as well as smoke-free products, and other nicotine-containing products.
Its distributor is Micon Marketing Limited.