Endorphine v. State Service Food Safety and Consumer Protection

In September 2023, Endorphine LLC filed a lawsuit against the State Service of Ukraine on Food Safety and Consumer Protection in Kyiv, challenging their decision to fine Endorphine the equivalent of 120,000 hryvnias for advertising and promoting the sale of water pipe tobacco products (hookah) in the restaurant operated by the Endorphine.

Initially, the trial and appellate courts decided in favor of Endorphine and found that providing hookah preparation services cannot be considered a method of promoting the sale of tobacco products and is not a service for the sale of tobacco products for further use. However, Ukraine's Supreme Court reversed these decisions, upholding the State Service's sanction against Endorphine. The Supreme Court affirmed that restaurant facilities must comply with Ukraine's smoke-free environment legislation and that the preparation of hookah is prohibited by law as it constitutes the promotion of tobacco product sales by restaurant facilities.

 

Endorphine LLC v. Main Directorate of the State Service on Food Safety and Consumer Protection in Kyiv, Case No. 320/29317/23, Ukraine Supreme Court (2024)

  • Ukraine
  • Dec 20, 2024
  • Supreme Court of Ukraine
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Parties

Plaintiff Endorphine LLC

Defendant Main Directorate of the State Service on Food Safety and Consumer Protection in Kyiv

Legislation Cited

International/Regional Instruments Cited

Related Documents

Type of Litigation

Tobacco Control Topics

Substantive Issues

Type of Tobacco Product

“In light of the above, the trial and appellate courts reached an erroneous conclusion that the provision of hookah preparation services at the restaurant establishment “Endorphine” did not fall under the complete prohibition established by Article 13, part 2 of Law No. 2899-IV, as amended effective July 11, 2022. This effectively legalized smoking, consuming, and using tobacco products at such facilities, and the courts had no grounds to invalidate and declare null and void the resolution No. 21/4833 of the SSUFSCP Central Directorate in Kyiv dated July 21, 2023, which imposed financial sanctions on “Endorphine” LLC in the total amount of 120,000 UAH for committing violations, the liability for which is established in Article 20, part 2, paragraph 9 of Law No. 2899-IV. The legal position of the Supreme Court, formulated in the ruling dated January 19, 2023 regarding the case No. 420/2004/22, concerned the application of the norms of the previous edition of Article 13 of Law No. 2899-IV, when the prohibition was limited to smoking tobacco products and did not take into account “consumption” or “use” of alternative products, such as non-tobacco hookahs, that is, when the prohibition of hookahs at restaurant facilities was not absolute (until July 11, 2022). Therefore, such conclusions of the Supreme Court should not be taken into account when considering this case due to the change in legal regulation after the relevant provisions of Law No. 2899-IV as amended by Law No. 1978-IX became effective. In light of the changes in legislation effective July 11, 2022, hookahs are subject to an absolute prohibition at restaurant facilities, regardless of their composition; The provision of services by restaurant facilities that are prohibited by Article 13 of Law No. 2899-IV, specifically the preparation of hookahs, constitutes the promotion of tobacco product sales within the meaning of Article 16 of Law No. 2899-IV, even if there is no direct advertisement of the product.”