Tobacco Plain Packaging Enforcement Policy - November 2012

This Department of Health and Ageing Tobacco Plain Packaging Enforcement Policy (the Enforcement Policy) contains general information only and should not be relied upon for the purposes of a particular matter. The provisions in this Enforcement Policy are limited to the initial period, following which the policy will be updated. It does not provide legal advice and is not to be relied upon as a source of legal advice. It is provided as a general guide only and as such any person reading this Enforcement Policy should rely upon their own judgment and make their own inquiries including seeking relevant professional advice before entering into any arrangements or making any commitment on the basis of any of the material in this Enforcement Policy. Nothing in this Enforcement Policy shall be taken in any way to replace the provisions of the Tobacco Plain Packaging Act 2011 (Cth), the Tobacco Plain Packaging Regulations 2011 (Cth) or any other legislative instruments made pursuant to tobacco control.
Commonwealth of Australia 2012

1. Purpose of the Enforcement Policy


2. Background

A.Tobacco Plain Packaging Act 2011

B. Health warnings


3. Principles underlying this Enforcement Policy

A. Proportionality

B. Transparency

C. Consistency

D. Confidentiality

E. Timeliness


4. Aims of Compliance and Enforcement Activity


5. Enforcement options

A. Enforcement Committee

B. Administrative enforcement

C. Court enforcement


6. Enforcement approach

A. Suppliers

B. Manufacturers


7. Referral to another agency


1. Purpose of the Enforcement Policy

The Tobacco Plain Packaging Enforcement Policy (Enforcement Policy) sets out the principles adopted by the Department of Health and Ageing (DoHA) in its enforcement role in the initial period following full operation of the Tobacco Plain Packaging Act 2011 and the Tobacco Plain Packaging Regulations 2011 (together, the TPP Legislation). DoHA has responsibility to investigate and enforce the TPP Legislation on behalf of the Commonwealth. The Enforcement Policy explains the options for enforcement of the TPP legislation and the strategies and priorities that will guide decisions about enforcement actions.

The Australian Government remains committed to the full enforcement of the TPP Legislation. In doing so, it recognises that consideration may need to be given to the range of enforcement options available in the initial period of the legislation having full effect and has therefore developed this Enforcement Policy.

This Enforcement Policy is effective from 1 December 2012 to 28 February 2013 (the Initial Period). It does not apply to conduct engaged in after the Initial Period. The Enforcement Policy will be updated prior to the initial period expiring on 28 February 2013, unless DoHA elects to extend the Initial Period. In the event that DoHA elects to extend the Initial Period, it will, before the end of the Initial Period, publish its election and the date to which it will extend the Initial Period.

2. Background

A.Tobacco Plain Packaging Act 2011

In April 2010, the Government announced that it would introduce legislation to mandate the plain packaging of tobacco products. Alongside this measure, health warnings on tobacco products were also to be updated and expanded.
The Tobacco Plain Packaging Act 2011 (the Act) became law on 1 December 2011 and requires that: The objects of the Act are stated in section 3 of the Tobacco Plain Packaging Act 2011.

B. Health warnings

The Australian Government is responsible for mandating health warnings on the packaging of tobacco products sold in Australia. The health warnings have been updated and expanded under the Competition and Consumer (Tobacco) Information Standard 2011 (the Standard), which commenced on 1 January 2012. Under the Standard, retail packaging of tobacco products is required to display the new warnings by 1 December 2012 to coincide with the plain packaging requirements.

DoHA has policy responsibility for health warnings, while the Standard is administered within the Treasury portfolio and enforced by the Australian Competition and Consumer Commission, in collaboration with the state and territory fair trading agencies. The Enforcement Policy does not affect, in any way, the enforcement of the Standard by those agencies.

3. Principles underlying this Enforcement Policy

During the Initial Period, DoHA will exercise its enforcement powers in an appropriate manner using the principles of proportionality, transparency, consistency, confidentiality (where appropriate) and timeliness.

A. Proportionality

Any enforcement action undertaken will be proportionate to the seriousness of the
non-compliance.

B. Transparency

Guidance material on compliance with the TPP Legislation together with compliance policies and strategies are publicly available so that regulated entities understand what is expected of them and how their compliance will be enforced. Regulated entities, where appropriate, will be informed of decisions made and the grounds for the decisions.

C. Consistency

A consistent national approach is taken in interpreting, applying and enforcing the TPP Legislation.

D. Confidentiality

Generally, investigations are conducted confidentially and DoHA will not comment on matters it may or may not be investigating.

E. Timeliness

DoHA will run all investigations as efficiently as possible to avoid costly delays and uncertainty.

4. Aims of Compliance and Enforcement Activity

In enforcing the provisions of the TPP Legislation, DoHA’s primary aims are to:
To assist with these aims, it is necessary to ensure a balance between the appropriate use of resources and effective compliance with the TPP Legislation. The aim is to achieve the highest level of tobacco manufacturer and supplier compliance.

DoHA recognises that the introduction of the TPP Legislation has resulted in significant changes for tobacco manufacturers and suppliers. Accordingly, DoHA’s approach to the initial period of the Enforcement Policy for suppliers in particular, focuses on education and communication.

The use of the word 'suppliers' in the Enforcement Policy is, for the purposes of the Enforcement Policy, intended to include all wholesale or retail suppliers of tobacco products, but shall not include manufacturers of tobacco products or related entities of manufacturers involved in the distribution or supply of tobacco products to arms-length wholesale or retail suppliers.

5. Enforcement options

Not every contravention of the TPP Legislation must be prosecuted. A range of enforcement options are available, from education and warnings through to civil or criminal proceedings. These options are:

A. Enforcement Committee

During the Initial Period, a Tobacco Plain Packaging Enforcement Committee (Enforcement Committee) will be established, comprising representatives from DoHA and the National Measurement Institute (NMI).

The NMI, through its authorised officers, will undertake compliance and enforcement activities across Australia on DoHA’s behalf and will report potential contraventions to the Enforcement Committee.

The Enforcement Committee will consider reports of potential contraventions of the TPP Legislation and advise what actions, if any, should be taken in relation to the contraventions. The Enforcement Committee may recommend enforcement through use of administrative mechanisms (as set out in section 5B), or recommend to DoHA decision makers that consideration be given to the commencement of civil or criminal proceedings (as set out in section 5C).

Alternatively, the Enforcement Committee may consider that education already provided by the NMI’s authorised officers is sufficient or that the appropriate response to a contravention is to provide further education and communication or to issue a written warning. Where the Enforcement Committee considers that more serious action should be taken, it will recommend that action to the appropriate decision maker.

In considering what action, if any, DoHA should take in relation to a report it receives from the Enforcement Committee, DoHA will consider: In assessing the seriousness of the contravention, DoHA may have regard to any evidence concerning:

B. Administrative enforcement

1) Communications, information and education

Measures such as communications, the provision of information and education are designed to encourage compliance. To this end, DoHA has already employed a comprehensive communications and information strategy to ensure tobacco manufacturers and suppliers are aware of their responsibilities and obligations under the TPP Legislation.

DoHA will continue information and education activities in the Initial Period.

Education will be an important feature of DoHA’s compliance and enforcement approach during the Initial Period of the Enforcement Policy. However, DoHA's reliance predominantly on education as an enforcement tool will decrease as manufacturers and suppliers enhance their compliance mechanisms relating to the packaging and appearance of tobacco products.

2) Notice of Alleged Non-Compliance

Authorised officers may issue manufacturers or suppliers a Notice of Alleged Non-Compliance recording the nature of the activity alleged to be contravening the TPP Legislation, and provide guidance on rectification or other education. Authorised officers may re-visit manufacturers or suppliers that have been issued with such a notice to ensure that the manufacturer or supplier is complying with the TPP Legislation.

3) Written warning

In some circumstances it may be appropriate for the Enforcement Committee to issue a written warning. Authorised officers may re-visit manufacturers and suppliers that have been issued with a written warning to ensure that appropriate action has been taken. Failure to comply following a written warning will, in most cases, lead to the issuing of an infringement notice or other enforcement action being undertaken against the manufacturer or supplier.

4) Infringement notices

Infringement notices may be issued when an authorised officer has reasonable grounds to believe that a manufacturer or supplier has contravened a strict liability offence under the Act. A strict liability offence is one which does not require proof that the manufacturer or supplier intended to contravene the TPP Legislation, only that the manufacturer or supplier committed the prohibited act.
In the Initial Period, where an authorised officer has reasonable grounds to believe that a manufacturer or supplier has contravened a strict liability offence, the officer will seek advice and guidance from the Enforcement Committee on the issuing of an infringement notice.
An infringement notice may be issued where there has been a suspected contravention of the Act the seriousness of which requires a more formal sanction than a Notice of Alleged
Non-Compliance or a written warning. For example, an infringement notice may be appropriate where:
An infringement notice will include details of the amount payable under the notice, the time for payment and how payment is to be made. A person may choose not to pay the amount, however payment of the amount within the specified time will prevent civil or criminal proceedings being brought against the person in relation to the alleged contravention. Payment of an infringement notice is not to be taken as an admission of guilt for the alleged contravention.

An infringement notice must be issued within 12 months after the day on which the contravention is alleged to have taken place.

C. Court enforcement

During the Initial Period, where there is a moderate to high level of non-compliance by a manufacturer or supplier of tobacco products, legal action may be pursued if, having regard to all the circumstances, DoHA’s decision makers consider it is the most appropriate way to achieve its compliance and enforcement objectives.

DoHA is more likely to proceed to litigation in circumstances where the conduct is egregious, where there is reason to be concerned about future behaviour or where the party involved fails to demonstrate a willingness to achieve complete compliance.

In these circumstances, DoHA may undertake one or more of the following actions.

1) Injunction

An application for an injunction may be made to restrain a manufacturer or supplier of tobacco products from further conduct that may or would constitute an offence under the Act. An injunction may be applied for where the offence is serious and/or the impact of the offence is serious.

2) Civil penalty

A civil penalty is imposed by proving a contravention through a civil court procedure rather than through the criminal court process. A civil penalty is a purely monetary penalty, and does not result in any criminal conviction.
DoHA is likely to commence civil proceedings where the conduct is egregious, where prior enforcement actions have not led to rectification of non-compliance, or where there is reason to be concerned about future non-compliance.

3) Criminal prosecution

DoHA will refer an alleged contravention to the Commonwealth Director of Public Prosecutions (CDPP) for prosecution where there is prima facie sufficient evidence that an offence has been committed and one or more of the following applies:
The decision to prosecute rests with the CDPP who will assess the information and determine if there is a reasonable prospect of conviction based on admissible, substantial and reliable evidence. The CDPP Guidelines on Prosecutions are available at Commonwealth Director of Public Prosecutions Website .

6. Enforcement approach

DoHA reiterates that the enforcement approach set out below is effective only during the Initial Period. As stated at the beginning of this Enforcement Policy, the use of the word 'suppliers' is, for the purposes of the Enforcement Policy, intended to include all wholesale or retail suppliers of tobacco products, but shall not include manufacturers or related entities of manufacturers involved in the distribution or supply of tobacco products to arms-length wholesale or retail suppliers.

A. Suppliers


1) Substantial compliance with minor or anomalous non-compliance

Where a tobacco supplier is substantially compliant with the plain packaging laws but has committed a relatively minor or anomalous contravention, DoHA will consider a range of enforcement actions including the provision of education and information to the supplier to support compliance. If appropriate, authorised officers may re-visit the supplier at a later date to ensure compliance.

2) Sale of a tobacco product with a non-compliant appearance (e.g. cigarette sticks)

DoHA recognises that, in the Initial Period, it will be difficult for suppliers to confirm that the contents of tobacco packaging comply with the TPP Legislation. In the event that suppliers knowingly contravene the legislation in relation to the appearance of tobacco products (such as in relation to non-compliant paper casing or the alphanumeric codes on cigarette sticks ) contained in otherwise compliant external packaging, DoHA will, during the Initial Period, provide education. Authorised officers may revisit the retailer at a later date to ensure compliance, if DoHA considers it appropriate.

3) Significant non-compliance

Suppliers selling or offering for sale tobacco products in non-compliant packaging will be issued a Notice of Alleged Non-Compliance and be provided with education and information, and may be issued with a written warning or an infringement notice. The Enforcement Committee may recommend to DoHA decision makers that court action be initiated against the supplier.

Factors to be taken into account in deciding whether to take a predominantly educative response or other action will include the amount of non-compliant packaging and whether the supplier has previously been educated about a similar contravention.

B. Manufacturers


1) Substantial compliance

A manufacturer substantially compliant with the plain packaging laws with only minor non-compliance will be considered as being substantially compliant. An example of minor non-compliance is the supply or manufacture of cigarettes in compliant packaging with the contents of the packaging being non-compliant in relation to lines on (perpetuating either concentric rings around or lines along) the casing of cigarette sticks, and the alphanumeric codes applied to cigarette sticks.

In relation to conduct engaged in between 1 December 2012 and 11 January 2013, DoHA will typically issue a Notice of Alleged Non-Compliance and seek to educate the manufacturer. DoHA may take other action in cases of relative seriousness and where it considers there to be a doubt about the manufacturer’s willingness to comply.

In relation to conduct engaged in between 12 January 2013 and the end of the Initial Period, where there is substantial compliance, DoHA is likely to issue a Notice of Alleged Non-Compliance and an infringement notice. DoHA may take other action in cases of relative seriousness and where it considers there to be a doubt about the manufacturer’s willingness to comply.

2) Significant non-compliance

A manufacturer will be considered to be significantly non-compliant where it supplies or manufactures tobacco products in non-compliant packaging or if it produces contents of tobacco packaging that are not compliant with the legislation (with the exception of the lines on cigarette casing and alphanumeric codes as outlined above). The Enforcement Committee will consider the various enforcement options and respond appropriately to such non-compliance.

7. Referral to another agency

Matters that do not fall within the jurisdiction of DoHA may be referred to another Commonwealth or state and territory agency with the appropriate jurisdiction.

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Page last updated 30 November, 2012