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
Some governments have considered introducing point of sale display bans but rejected the idea on the basis that the evidence put forward was speculative and unproven to reduce smoking rates.
“Canada has introduced a so-called point of sale display ban on tobacco, which means that the packs are not allowed to be visible. This does not mean that there has been any noticeable effect on consumption. Some provinces have even seen an increase.”
Jan R Andersson, Swedish MP during Parliamentary debate on Government Bill on Unlawful Tobacco Sales, 15 June 2010
“If there was a clearly documented effect from putting all tobacco in boxes behind dark curtains, we could maybe consider it, but we do not believe that the few countries who have implemented something similar can document any real effect.”
Bertel Haarder, Danish Minister of Interior and Health in public debate on point of sale display ban, 27 May 2010
“[In countries that have implemented display bans], there has been no demonstrated correlation between a drop in the number of smokers and a ban on tobacco being visible at points of sale.”
Birgitte Josefsen, Danish Spokesperson on Health in public debate on point of sale display ban, 27 May 2010
“I am not sure it has that much of an impact”
Jakob Axel Nielsen, Danish Minister for Health, about introducing a display ban, DR2 “Debatten” April 23, 2009
“The evidence about the public health benefits of prohibiting the display of tobacco products in retail environment is . . . not conclusive.”
UK Department of Health Consultation on the Future of Tobacco Control (May 2008)
“In Iceland, a display ban was introduced in 2001. Smoking incidence among the Icelandic public (15 years and above) has decreased from 25% in 2001 to 20% in 2005. It is however not proven that this reduction comes from the introduction of the display ban alone rather than other tobacco preventive measures.”
Norwegian Ministry of Health and Care Services, Public Hearing of A Proposal on A Ban Against Visible Display of Tobacco Products at Point of Sale, as well as Certain Other Changes to the Tobacco Damage Act and the Advertising Regulation at 5 March 2007 (emphasis added).
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.
“Those who sell illegal cigarettes also finance organized crime, and it is natural to think that those who sell these cigarettes do not care about age verification, self-supervision and tax declaration.”
Jan R Andersson, Swedish MP during Parliamentary debate on Government Bill on Unlawful Tobacco Sales, 15 June 2010
“[By introducing a point of sale display ban] we increase the black market, we widen the freedom to act for criminals and we make it easier for young people to get their hands on tobacco in the black market.”
Anita Chistensen, Danish MP during public debate on point of sale display ban, 27 May 2010
“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
“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.
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.