Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

India's Delhi government tells Philip Morris to remove all ads

Published 07/22/2017, 01:19 PM
Updated 07/22/2017, 01:20 PM
© Reuters. A man smokes next to a cigarette advertisement hung on a tree at a marketplace in New Delhi

By Aditya Kalra

NEW DELHI (Reuters) - The state government in India's capital told Philip Morris International Inc (NYSE:PM) and other tobacco companies on Saturday to remove all advertisements from tobacco shops in the city, warning them of legal action if they do not comply.

The order, sent by Delhi state's chief tobacco control officer S. K. Arora, comes days after Reuters reported that Philip Morris was promoting Marlboro cigarettes, the world's best-selling brand, by advertising them at tobacco shops and distributing free cigarette samples. Government officials say such tactics flout the law.

The strategy was laid out in hundreds of pages of internal Philip Morris documents reviewed by Reuters that cover the period from 2009 to 2016. (http://reut.rs/2uuye5Y)

Indian officials have previously said tobacco advertising using brand names or promotional slogans is illegal under the country's Cigarettes and Other Tobacco Products Act and its accompanying rules. But Philip Morris and India's leading cigarette maker ITC Ltd say they comply with regulations and that the law allows advertising inside a kiosk.

Arora said the federal health ministry had told him that all brand advertisements, irrespective of where they were placed, were not allowed in the country.

Philip Morris and ITC did not immediately respond to requests for comment on Saturday.

Tobacco companies have continued to advertise at sale points despite repeated warnings from the Delhi state government in recent years. Philip Morris has been paying a monthly fee to some tobacco vendors to display the company's colorful advertisements, the Reuters investigation found.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Arora also told Reuters he "will investigate and conduct raids" to check on distribution of free cigarettes at social events. "If violations are found, action as per law will be taken," Arora said.

India enacted its national tobacco control law in 2003 and has since added rules to strengthen it, but government officials say companies get away with violations because law enforcement is weak.

The federal health ministry on Friday said it planned to seek an explanation from Philip Morris and other tobacco companies about their marketing practices following the Reuters investigation that was published earlier this week. Philip Morris and ITC did not respond to requests for comment. (http://reut.rs/2tO8tt5)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.