Retailers Face Heavy Fines in New Zealand’s Tobacco and E-Cigarette Sales Crackdown

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    New Zealand’s Ministry of Health and Health New Zealand announced a major crackdown on illegal tobacco and e-cigarette sales as part of their efforts to enforce the Smokefree Environments and Regulated Products Act. This comes after spot checks conducted in July 2024 revealed widespread violations, leading to fines for nearly 10% of the 600 retail stores inspected.


    Key Violations and Fines Issued

    Among the most significant violations:

    • Canteros Limited and its owner were fined $28,000 for illegal sales, incorrect product labeling, and unlawful advertising practices, all in violation of the Smokefree Environments and Regulated Products Act.
    • Discount Specialist was fined $8,000 for illegally selling single cigarettes and for displaying tobacco products in-store.

    In an earlier case, a Christchurch dairy owner received a record $56,000 fine for similar violations, marking the highest penalty in New Zealand’s tobacco industry.

    Nationwide Enforcement Actions

    Phil Knipe, Chief Legal Advisor at the Ministry of Health, emphasized that these fines are just the beginning, as more prosecutions are expected. In July 2024, Health New Zealand carried out a nationwide controlled purchase operation across 600 retailers. Underage volunteers attempted to purchase tobacco and e-cigarette products, resulting in 64 retailers being fined for selling restricted products to minors, the highest number of violations recorded in such operations.

    Ongoing Compliance and Monitoring Efforts

    Jo Pugh, Compliance Manager for National Public Health Services, reiterated that ensuring retailers adhere to the law remains a top priority for the Ministry. Monitoring efforts will continue, and penalties for non-compliance will be strictly enforced to maintain public health standards.


    FAQs

    Why did New Zealand launch this crackdown on illegal tobacco and e-cigarette sales?

    The Ministry of Health launched this enforcement action in response to increasing non-compliance with the Smokefree Environments and Regulated Products Act. Violations such as improper sales, illegal advertising, and sales to minors were driving factors behind the crackdown.

    What are some of the major fines issued to non-compliant retailers?

    Canteros Limited was fined $28,000 for illegal sales and advertising violations.
    Discount Specialist was fined $8,000 for selling single cigarettes and displaying tobacco products in-store.
    A Christchurch dairy owner previously received a record fine of $56,000 for similar violations.

    How were the nationwide spot checks conducted?

    In July 2024, Health New Zealand carried out controlled purchase operations, where underage volunteers attempted to buy cigarettes and e-cigarettes from retailers. Out of 600 retailers, 64 were fined for selling restricted products to minors.

    Why are selling single cigarettes and displaying tobacco products illegal in New Zealand?

    Selling single cigarettes and displaying tobacco products in-store is illegal under the Smokefree Environments and Regulated Products Act because these practices can encourage smoking, especially among minors. These regulations are part of a broader effort to reduce smoking rates and protect public health.

    How can retailers ensure compliance with the Smokefree Environments and Regulated Products Act?

    Retailers should:
    Avoid selling tobacco or e-cigarette products to minors,
    Refrain from selling single cigarettes,
    Ensure proper labeling and advertising practices,
    Keep tobacco products out of sight in-store.

    References:

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