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Argument: Ultra Vires Regulation

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Confederação Nacional do Turismo et. Confederacao Nacional do Comercio de Bens, Servicos e Turismo v. Paraná [Brazil] [August 24, 2020]

The National Confederation of Tourism, together with the National Confederation of Commerce of Goods, Services, and Tourism, filed a lawsuit against the Paraná (state-level) tobacco control law, which prohibits smoking in public or private collective environments in the state of Paraná. The Court unanimously held that state legislative assembly did not exceed its competence to legislate public health. The Court concluded that the state law did not offend fundamental freedoms since it did not prohibit the exercise of the individual's right to consume tobacco products. Furthermore, the Court affirmed that the restriction of using tobacco products in collective enclosed environments respected the rights of non-smokers and the adequate protection of health.

Confederacao Nacional do Comercio de Bens, Servicos e Turismo v. Paraná [Brazil] [August 24, 2020]

The National Confederation of Commerce of Goods, Services, and Tourism filed a lawsuit against the Paraná (state-level) tobacco control law, which prohibits smoking in public or private collective environments in the state of Paraná. The Court unanimously held that the state legislative assembly did not exceed its competence to legislate public health. The Court also concluded that the state law did not offend fundamental freedoms since it did not prohibit the exercise of the individual's right to consume tobacco products. Furthermore, the Court affirmed that the restriction of using tobacco products in collective enclosed environments respected the rights of non-smokers and the adequate protection of health.

Confederacao Nacional do Comercio de Bens, Servicos e Turismo v. Rio de Janeiro [Brazil] [December 20, 2019]

The National Confederation of Commerce of Goods, Services, and Tourism filed a lawsuit against Rio de Janeiro's tobacco control law on smoke-free environments, which banned smoking in public or private collective environments. The Court unanimously held that the state legislative assembly did not exceed its competence to legislate public health. The Court noted that local regulations could be more restrictive than the federal regulation. Further, the judges established that (i) freedom of commerce must be interpreted together with the principle of consumer protection and (ii) restrictions on products that are potentially dangerous are legitimate.

Confederação Nacional do Turismo v. São Paulo [Brazil] [December 03, 2019]

The National Confederation of Tourism filed a lawsuit against a São Paulo (state-level) tobacco control law regulating smoke-free places. The judge considered that the action was impaired because, after the claim was filed, a federal law was enacted which regulated smoke-free places in a more comprehensive manner. The newly enacted federal law banned smoking lounges, which the challenged state law had already done.

British American Tobacco Kenya, PLC v. Ministry of Health [Kenya] [November 26, 2019]

British American Tobacco Kenya filed a petition to the Kenya Supreme Court appealing a 2017 Court of Appeal decision upholding nearly all elements of Kenya’s Tobacco Control Regulations. The Supreme Court ruled that the tobacco company’s appeal had no merit, dismissed the petition in its entirety and affirmed the decision of the lower court.

Both lower courts upheld nearly all elements of the Regulations, which are designed to implement the Tobacco Control Act, including:

- a 2% annual contribution by the tobacco industry to help fund tobacco control education, research, and cessation;
- picture health warnings;
- ingredient disclosure;
- smoke-free environments in streets, walkways, verandas adjacent to public places and in private vehicles where children are present;
- disclosure of annual tobacco sales and other industry disclosures; and
- regulations limiting interaction between the tobacco industry and public health officials.

Philippine Tobacco Institute v. City of Balanga, et al. [Philippines] [July 22, 2019]

The Philippine Tobacco Institute (PTI), whose members include Philip Morris Philippines Manufacturing, Inc. and JTI Philippines, Inc., challenged a City of Balanga ordinance making the City's 80-hectare University Town and its three kilometer radius "tobacco free," meaning the sale, use and marketing of tobacco products and e-cigarettes are banned. In July 2018, the Regional Trial Court declared the ordinance unconstitutional and invalid. The City appealed the decision to the Court of Appeals, which upheld the lower court's decision. The Court of Appeals concluded that the ordinance was invalid because it went beyond the provisions of Republic Act No. 9211, a federal law. (The federal law prohibits smoking in specified places and the sale of tobacco products within 100 meters of schools, playgrounds, and other facilities frequented by minors. The City ordinance, on the other hand, prohibits selling, distributing, using, advertising, and promoting tobacco products within University Town and within a three-kilometer radius.) The City's Motion for Reconsideration was also denied.

Philippine Tobacco Institute v. City of Balanga et al. [Philippines] [May 21, 2019]

The Philippine Tobacco Institute ("PTI"), whose members include JTI and PMI, challenged a City of Balanga ordinance creating a tobacco-free generation, which prohibits the sale of tobacco products and e-cigarettes to any person born on or after January 1, 2000. The Regional Trial Court ruled in favor of PTI in July 2018, concluding that "any ordinance prohibiting PTI from selling to any person regardless of age is an unreasonable and oppressive interference of business." The court reasoned that the ordinance now covers individuals who have reached the age of majority and is not limited to minors. In addition, the court held that the ordinance violates substantive due process of those exercising parental authority since the ordinance attempted to extend criminal liability to parents.

The City’s appeal to the Court of Appeals was denied, as was a motion for reconsideration.

Godfrey Phillips India Limited vs. Union of India [India] [August 31, 2018]

ITC and Godfrey Phillips India filed petitions in the Karnataka High Court challenging new 85% health warnings (dated April 3, 2018) that prescribed new images along with a quit line number. The tobacco companies asserted that the Government was not free to amend the Rules as the legality of related Rules (establishing 85% pack warnings) currently is pending in the Supreme Court. The Government maintains that the legality of the April 3rd pack warnings also was challenged in the Supreme Court, where the court refused to stay implementation, choosing instead to condense this matter with the review of the related 85% pack warnings. The Karnataka court refused to stay the April 3rd warnings, noting that using these new images would not constitute hardship to the tobacco companies as already 85% pack warnings are placed on packs.

Flavour of America S.A. v. Paraguay [Paraguay] [July 12, 2018]

The petitioners filed an appeal for legal protection, challenging the constitutionality of two administrative decrees that implemented Article 8 and Article 11 of the FCTC. The Court held that the Executive Branch’s decrees established duties, obligations, and restrictions not allowed under the National Constitution, the law ratifying the FCTC, or the Sanitary Code. According to the Court, the FCTC contained only “programmatic” clauses and not “self-enforcing” provisions. As a result, in the case of a framework convention, the law that approves it must necessarily be regulated by another law enacted by Congress. That Law can then be regulated by a decree issued by the Executive Branch. The Court stated that there is no express legislative delegation that enables the Executive Branch to regulate Articles 8 and 11 of the FCTC by decree, especially when there are already prior and subsequent laws entirely in force.

National Confederation of Industry (Confederação Nacional da Indústria) v. ANVISA [Brazil] [February 01, 2018]

In 2012, Brazil banned tobacco additives and flavors. The National Confederation of Industry (Confederação Nacional da Indústria) challenged the ban. The Supreme Federal Tribunal, Brazil’s highest court, upheld the 2012 regulation and affirmed the Brazilian Health Regulatory Agency’s (ANVISA) right to regulate tobacco products. The court held that freedom of enterprise does not prevent Brazil from imposing conditions and limitations on private activities. The court found that while businesses have rights, they must be compatible with other fundamental and constitutional rights. In the case of tobacco control, these fundamental and constitutional rights include the right to health and the right to information. The court further held that the risks associated with tobacco consumption justify the tobacco market being subjected to intense health regulations.

Because the court failed to reach a majority (5-5 tie), the decision is not binding on other tribunals, and, by not reaching a majority, the court rejected the constitutionality claim against the ANVISA regulation (“Resolução da Diretoria Colegiada da ANVISA 14/2012”). Although the decision is not binding because of a lack of quorum, it is unlikely that subsequent challenges to the regulation would be decided differently.  (Note that the decision is in Portuguese with five pages translated into English. The English translation is located in "Related Documents.")