REPLACEMENT EXPLANATORY STATEMENT
Competition and Consumer Act 2010
Competition and Consumer (Tobacco) Information Standard 2011.
The Competition and Consumer (Tobacco) Amendment Information Standard 2012 (No.1)
Background
The Competition and Consumer (Tobacco) Information Standard 2011 (the Information Standard) provides consumers with updated and more prominent health warnings about the health effects of smoking and incorporates both graphic and text-only health warnings. The content of all health warnings is based on scientific evidence and has been cleared by the Commonwealth Chief Medical Officer.
Parts 3 and 4 of the Information Standard set out the content of the health warnings required on “retail packaging for cigarettes and smoked tobacco products not mentioned in other Parts (the first and second set of health warnings)”.
Part 9, section 9.5 of the Information Standard sets out the rotation schedule required for the first and second set of health warnings to be displayed on the relevant retail packaging.
Purpose
This amendment provides a replacement graphic in the existing Information Standard.
The replacement graphic is in the health warning “smoking causes heart disease”, at section 4.4(2) in Part 4 of the Information Standard. There are no other changes to the Information Standard.
The amendment is necessary to ensure consumers do not misunderstand the nature of damage to the heart caused by tobacco smoking. The intention of the amended graphic is to more clearly convey the type of damage smoking can cause to the heart and therefore strengthen the ability of the health warning to achieve its purpose to the greatest extent possible.
The amended graphic is consistent with that used in health warnings on tobacco products sold in Canada and New Zealand.
The Information Standard does not require this graphic to be applied to the retail packaging of relevant tobacco products until 1 December 2013. Due to the minor nature of the amendment and the long period of time before the graphic is required to be applied, formal consultation on the amendment has not been undertaken. No supplier should be unreasonably impacted by the amendment and all suppliers who have previously requested a disk of the electronic images from the Department of Health and Ageing will be sent a new disk with the amended image.
Disallowance
This legislative instrument is not subject to disallowance due to section 44 of the Legislation Act 2003.
Sunset Provisions
This legislative instrument is not subject to sunsetting due to section 54 of the Legislation Act 2003.
Overview
The Competition and Consumer (Tobacco) Amendment Information Standard 2012 (No. 1) is a legislative instrument that amends the Competition and Consumer (Tobacco) Information Standard 2011. This amendment was introduced to address the need for a clearer depiction of the health risks associated with smoking, specifically the impact on heart disease. The amendment replaces an existing graphic health warning with a new one that aims to more accurately convey the type of damage smoking can cause to the heart, thereby enhancing the effectiveness of the health warning. This change is intended to ensure that consumers do not misunderstand the health effects of smoking and is aligned with health warning graphics used in other jurisdictions such as Canada and New Zealand. The amendment, which is relatively minor, does not require immediate application and was introduced without formal consultation due to the extended timeframe before the new graphic must be implemented on retail packaging, set for 1 December 2013.
Scope and Application
The Competition and Consumer (Tobacco) Amendment Information Standard 2012 (No.1) applies to all suppliers of cigarettes and smoked tobacco products in Australia. This includes both domestic and imported products, ensuring a consistent approach to the presentation of health warnings across the industry. The amendment targets the retail packaging of cigarettes and smoked tobacco products, specifically mandating a replacement graphic for the health warning "smoking causes heart disease." The amendment does not apply to other tobacco products such as cigars or vaping products, and is not applicable to products already in circulation prior to the amendment's effective date of 1 December 2013. The amendment is intended to enhance the clarity and effectiveness of the health warning in conveying the specific health risks associated with tobacco smoking. This change is aligned with similar measures taken in Canada and New Zealand and is part of a broader effort to reduce tobacco consumption by increasing public awareness of its health impacts. The amendment is a minor adjustment to the existing Competition and Consumer (Tobacco) Information Standard 2011, and no formal consultation was deemed necessary due to its limited scope and the extended implementation period.
Key Provisions
The Competition and Consumer (Tobacco) Amendment Information Standard 2012 (No.1) amends the Competition and Consumer (Tobacco) Information Standard 2011 (the Information Standard), primarily by updating the graphic in one of the health warnings on tobacco products. Specifically, section 4.4(2) in Part 4 of the Information Standard replaces the existing graphic in the health warning about the heart disease caused by smoking with a new one to better communicate the specific type of heart damage caused by tobacco smoking. This change is intended to enhance the clarity and effectiveness of the health warning, ensuring consumers understand the serious health risks involved. The amendment does not alter any other aspect of the Information Standard.
The Information Standard imposes certain obligations on tobacco product suppliers. These include displaying updated and prominent health warnings on retail packaging for cigarettes and smoked tobacco products. The warnings must be based on scientific evidence and cleared by the Commonwealth Chief Medical Officer. The Standard also mandates a rotation schedule for the first and second sets of health warnings, as outlined in Part 9, section 9.5. Suppliers must ensure that the required health warnings are prominently displayed on their products and comply with the specified rotation schedule.
Failure to comply with the requirements set out in the Competition and Consumer (Tobacco) Information Standard 2011, as amended, can result in civil or criminal consequences. Although the specific penalties are not detailed in the Explanatory Statement, under the Competition and Consumer Act 2010, penalties for breaches can include fines for both individuals and corporations. For corporations, the fines can be substantial, potentially reaching up to $1.1 million for serious or repeated breaches. Additionally, individuals responsible for the breach may face personal penalties, including fines and imprisonment, depending on the nature and severity of the offence. Compliance with these standards is crucial to avoid these potential consequences.