TRADE PRACTICES (CONSUMER PRODUCT INFORMATION STANDARDS) (TOBACCO) REGULATIONS 1994 NO. 83

TRADE PRACTICES (CONSUMER PRODUCT INFORMATION STANDARDS) (TOBACCO) REGULATIONS 1994 NO. 83

STATUTORY RULES 1994 No. 83

Issued by the authority of the Minister for Consumer Affairs

Trade Practices Act 1974

Trade Practices (Consumer Product Information Standards) (Tobacco) Regulations

LEGISLATIVE PROVISIONS

Section 172 of the Trade Practices Act 1974 ('the Act') provides that the Governor-General may make regulations for the purposes of the Act.

Section 65D(2) of the Act provides that a regulation may, in respect of goods of a particular kind, prescribe a consumer product information standard consisting of such requirements as to:

(a)       the disclosure of information relating to the performance, composition, contents, methods of manufacture or processing, design, construction, finish or packaging of the goods; and

(b)       the form and manner in which that information is to be disclosed on or with the goods

as are reasonably necessary to give persons using the goods information as to the quantity, quality, nature or value of the goods.

Section 65D(1) of the Act provides that a corporation shall not, in trade or commerce, supply goods that are intended to be used, or are of a kind likely to be used, by a consumer, being goods of a kind in respect of which a consumer product information standard has been prescribed, unless the corporation has complied with that standard in relation to those goods.

PURPOSE

The purpose of the Regulations is to give consumers more information about the damaging effects of smoking on health.

On two occasions (April 1992 and July 1993) the Ministerial Council on Drug Strategy (MCDS) agreed that substantial changes should be made to health warnings on tobacco products to provide more detailed information to consumers about the effects of smoking.

At the July 1993 meeting, the MCDS confirmed its commitment to introduce a strengthened system of health warnings for tobacco products. The target date for the implementation of this system was 1 April 1994.

However, Victoria then introduced a less detailed and weaker system which threatened the potential for national uniformity: a system which did not meet the spirit or detail of the MCDS agreement.

On 6 October 1993 Federal Cabinet agreed to introduce urgently national labelling requirements for tobacco products under the Trade Practices Act 1974. The Cabinet decision reflects the agreement made by the MCDS.

Tobacco manufacturers, however, require time in which to change over to a new labelling system. The strengthened system will therefore only apply to tobacco that is manufactured in or imported into Australia on or after 1 January 1995.

The MCDS also agreed on the need for a uniform national system to be in effect at all times. The purpose of Part 2 of the Regulations is therefore to provide for the current labelling system consistent with the MCDS decision to apply uniformly throughout Australia to tobacco manufactured in or imported into Australia on or after 1 April 1994 and before 1 January 1995.

Details of the Regulations are as follows:

Part 1-Preliminary

Regulation 1 is a formal provision providing for the citation of the Regulations.

Regulation 2 specifies the goods to which Parts 2 and 3 of the Regulations apply.

Regulation 3 defines the following terms used in the Regulations: "cigar", "cigarette", "retail package" and "tobacco".

Regulation 4 defines "retail package" for the purposes of the Regulations. The effect is to require cigarette cartons as well as individual packs to carry the labelling required by the Regulations. Cigars sold individually are excluded from the coverage of the Regulations.

Part 2-Arrangements from 1 April 1994 to 31 December 1994

Regulation 5 provides that during this period retail packages of tobacco must carry labels in accordance with Victorian law as at 31 August 1993. The intention is to ensure that these requirements apply uniformly to the retail supply of tobacco in all States and Territories.

Part 3-Arrangements from 1 January 1995

Division 1-General

Regulation 6 defines the additional terms used in Part 3 of the Regulations. It also provides, for the purposes of the Regulations, for certain irregularities in packaging to be disregarded and for messages printed on adhesive labels to be taken to be printed on the package to which the label is attached.

Regulation 7 requires, subject to the Regulations, retail packages to bear a warning message and the corresponding explanatory message. The texts of the warning messages are in column two of Schedule 1 of the Regulations, and those of the corresponding explanatory messages are in column three of the same Schedule. In some cases retail packages need only bear a warning message twice and in others, a warning message twice as well as an explanatory message.

Regulation 8 provides specifically for messages on smaller packages.

Regulation 9 requires that warning and explanatory messages must be printed in a clear and legible black print in "Helvetica" type face on a white background enclosed within a black rectangular or square border. The words "Government Health Warning" must accompany both messages in a type point size not less than 50% of the point size used for the warnings.

Regulation 10 provides for the positioning of warning and explanatory messages.

Regulation 11 specifies the area to be covered by warning and explanatory messages. A warning message must cover at least 25% of the area of the face on which it is printed, unless the package is an irregular package as defined in Regulation 6, in which case it must cover at least 15% of the total surface area of the package. An explanatory message must cover at least one third of the face on which it is printed, unless the package is an irregular package, in which case it must cover at least 20% of the total surface area of the package.

Regulation 12 provides that where the face of the retail package upon which a warning or explanatory message is to be printed contains other text, then the message must be oriented in the same direction as the other text. If there is no other text on the face upon which the warning or explanatory message is to be printed, then the required message may be oriented in any direction.

Regulation 13 requires that where a message is likely to be obscured or obliterated by an external wrapper, then the message must be printed on both the wrapper and the package. The regulation also provides that a message, other than a message on a carton, must not be likely to be obliterated, removed or rendered permanently unreadable when the retail package on which it is printed is opened in the normal way.

Regulation 14 provides that a message required by the Regulations to be printed on a retail package may be printed on an adhesive label that is affixed to the package and sets out the requirements with which such labels must comply.

Regulation 15 provides that each warning message and the corresponding explanatory message must be printed in rotation in the period of twelve months beginning on 1 January each year. Each message should appear as nearly as possible on an equal number of retail packages of each kind of tobacco.

The different kinds of tobacco for the purposes of this Regulation are defined in subregulation 15(2).

Division 2-Retail packages containing cigarettes

Regulation 16 states that Division 2 of this Part applies to cigarette packets.

Regulation 17 specifies the positioning, content and format of messages to be printed on the side of retail packages containing cigarettes.

These messages are to contain information about the level of tar, nicotine and carbon monoxide contained, on average, in a cigarette of the kind contained in the retail package. They are to be printed in black type in Helvetica type face on a white background.

The space occupied by this information must occupy the whole of one side of the retail package, except in the cases of flip-top packs, a carton, or an irregular package. In the case of a flip-top pack, the message must occupy the whole of one side except the part of the side which forms part of the top. On cartons, the message must occupy at least 25% of the side on which it is printed, and on irregular packages, it must occupy at least 9% of the total surface area of the package.

Regulation 17 further provides that the results of testing can be averaged and 'banded' if the. average results of testing do not exceed the band levels specified in Schedule 3.

Regulation 18 details the methods by which, for the purposes of regulation 17, the average amounts of tar, nicotine and carbon monoxide produced by a cigarette may be determined.

Division 3-Cigars

Regulation 19 provides that Division 3 applies to packets of cigars.

Regulation 20 requires retail packages containing cigars to bear a warning message and the corresponding explanatory message in accordance with Division 1, or in accordance with regulation 21 or regulation 22.

Regulation 21 provides for packages with hinged lids to bear warning messages and explanatory messages in accordance with Division 1 on specified surfaces and covering specified surface areas.

Regulation 22 provides for other packages of cigars to bear the messages on specified faces, covering specified areas for different sized packages and otherwise in accordance with Division 1. The areas occupied by the messages are set out in Schedule 4.