British American Tobacco Panama v. Panama

Decree No. 611 establishes that Panama's ban on the advertising, promotion and sponsorship of tobacco products includes a ban on tobacco product display at the point of sale. BAT Panama SA and other tobacco companies filed suit requesting an order declaring Decree No. 611 illegal, arguing that it violated the right to property including intellectual property and consumers’ right to access information. The Administrative Chamber of the Supreme Court of Panama upheld the decree finding that there was no violation of trademark rights as trademark registration and use still were allowed.  The court also found that consumers’ right to access information was assured through the use of the textual listing of products and their prices and through health warnings on packages. Notably, the court used the FCTC guidelines to interpret FCTC obligations with regard to tobacco advertisement, promotion and sponsorship.

British American Tobacco Panama S.A. et al. s/ nulidad del Decreto Ejecutivo 611 de 2010, Corte Suprema de Justicia - Sala en lo Contencioso Administrativo [Supreme Court of Justice - Administrative Chamber] (2016).

  • Panama
  • Aug 3, 2016
  • Supreme Court of Justice of Panama - Administrative Chamber

Parties

Plaintiff

  • British American Tobacco Panamá S.A.
  • G. & R. Internacional S.A.
  • Habanos Panama S. A.
  • Obrigada Panama S.A.
  • Philip Morris Panama Sociedad en Comandita por Acciones

Defendant Health Ministry

Legislation Cited

International/Regional Instruments Cited

Related Documents

Type of Litigation

Tobacco Control Topics

Substantive Issues

Type of Tobacco Product

None

"Law No. 45 of October 31, 2007 "Which dictates regulations on consumer protection and defense of competition and another provision" provides in its article 36, numeral 1, that the supplier is obliged to inform clearly and truthfully to the consumer about the characteristics of the product or service, which must be consigned on the packaging, container, vessel or the product label on the shelf of the commercial establishment. The legal norm also contemplates that said information must be on the label and in the Spanish language when it comes to medicines, agrochemicals and toxic products and food products that require specific warnings or precautions that represent a danger to human health, that is, derived products of tobacco. Under this framework, the Court is of the opinion that, although it is true that the display of tobacco products and their derivatives is prohibited in dispensers, stands and any other shelves located in the points of sale, by means of Executive Decree No. 611 of June 3, 2010, however, the right of consumers to information is not violated because when he is going to purchase the tobacco product, he gets its characteristics before consuming it, that is, he knows in advance its nature, composition, content, weight, origin, expiration date, toxicity, and warnings."