Point of sale display bans have consequences for retailers, consumers, manufacturers and GOVERNMENTS. Read more on the effects of display bans below.
It is widely believed that banning display of legal products makes it easier for illegal products to thrive and grow. Illegal cigarettes present major issues for the government in terms of law enforcement and lost revenue.
Illegal cigarettes - Other more effective measures
The manufacture and sale of illegal cigarettes is run by well organized criminal outfits.
Operations are becoming increasingly sophisticated as criminals see the potential for large profits to be made from the sale of counterfeit and contraband cigarette products.
Countries who have implemented a product display ban have some of the highest levels of illegal cigarette sales in the world. For example, in Ireland 1 in 4 cigarettes is illegal whilst in some provinces of Canada illegal products make up over 40% of the market.
“The huge profits reaped from the sales of illegal cigarettes are ploughed straight back into the criminal underworld, feeding activities like drug dealing and fraud. Purchasing cheap cigarettes without the duty paid on them means trading with criminals, and undermining honest businesses.”
HMRC assistant director in criminal investigation, John Whiting – Northern Ireland, June 9, 2009
"Tobacco control measures such as advertising bans, public awareness campaigns, and point-of-sale display bans have had the cumulative effects of denormalizing traditional cigarette brands, stripping them of the social significance they once had. As big tobacco company brands have been denormalized, there has been growth in demand for 'no-name' cigarettes and discount brands. This bourgeoning demand has been filled by the contraband market through baggies [clear plastic bags of loose cigarettes] and Native brands of cigarettes."
The Ontario Tobacco Research Unit, Anti-Contrabrand Policy Measures: Evidence for Better Practice, June 2009.
“Although it might get me sacked, I don’t agree with the point of sale elements on the health bill. I think they won’t do what they are meant to do and will just damage small retailers and lead to more smuggling.”
Phil Woolas – UK Borders and Immigration Minister, talking to Tobacco Retailers Alliance, October 2009
Enforcement of well established tobacco control laws such as minimum age laws, a licensing system and penalties for infringements of the laws have been proven to be more effective in reducing youth access to tobacco products than a point of sale display ban. There is no evidence that a point of sale display ban has any effect in reducing smoking rates.
“The 2008 report, Tobacco and the Irish retail Environment, demonstrated disappointing compliance rates with sales to minors legislation. This research established that almost one in two stores were willing to sell tobacco to minors”.
The Irish Office of Tobacco Control (OTC) Annual Report 2008, June 22, 2009.