A tobacco retailer was forced to apply for a new license after a national law created a state monopoly on tobacco sales. The retailer’s application for a tobacco license was denied and, as a result of the lost sales, his shop was forced to close. The retailer claimed that the loss of his tobacco license unjustly deprived him of his property. The court found that the government’s decision not to grant the tobacco license interfered with the “peaceful enjoyment of possessions” guaranteed in the European Human Rights Convention. The court also found that the retailer had to suffer an excessive burden and awarded him 15,000 Euros to compensate for the lost business, plus 6,000 Euros for attorney costs.
Tobacco companies or front groups may challenge any legislative or regulatory measure that affects their business interests. Unlike public interest litigation, these cases seek to weaken health measures. These cases frequently involve the industry proceeding against the government. For example, a group of restaurant owners challenging a smoke free law as unconstitutional.
Measures restricting tobacco sales to or by minors, as well as other retail restrictions relating to point-of-sale, candy and toys resembling tobacco products, vending machines, or free distribution.
(See FCTC Art. 16)
A violation of property rights, sometimes in the form of an expropriation or a taking by the government. The tobacco industry may argue that regulations amount to a taking of property rights because they prevent the use of intellectual property such as trademarks.
The court might consider procedural matters without touching the merits of the case. These might include: improper joinder, when third parties, such as Health NGOs or government officials, seek to become parties to the suit; lack of standing, where a plaintiff fails to meet the minimum requirements to bring suit; lack of personal jurisdiction, where the court does not have jurisdiction to rule over the defendant; or lack of subject matter jurisdiction, where the court does not have jurisdiction over the issue at suit.
A tobacco retailer was forced to apply for a new license after a national law created a state monopoly on tobacco sales. The retailer’s application for a tobacco license was denied and, as a result of the lost sales, his shop was forced to close. The retailer claimed that the loss of his tobacco license unjustly deprived him of his property. The court found that the government’s decision not to grant the tobacco license interfered with the “peaceful enjoyment of possessions” guaranteed in the European Human Rights Convention. The court also found that the retailer had to suffer an excessive burden and awarded him 15,000 Euros to compensate for the lost business, plus 6,000 Euros for attorney costs.