Tobacco Products Control Amendment Bill 2008 Presentation

1. TOBACCO PRODUCTS CONTROL AMENDMENT BILL 2008Presentation to the Portfolio Committee on Health11 March 2008

2. BACKGROUND Background to the amendment to the tobacco products control act, act 83 of 1999 as amended by act 12 of 1999 and act 23 of 2007 • The Bill was publicised from 15 October 2003 – 15 November 2003 • The final Bill was split in June 2006 as Sections 75 and 76 Bill • Processing of the 75 Bill was concluded on the 23 February 2008 • Processing of the Section 76 Bill has started

3. INTRODUCTION • The MRC estimates that in 2000, smoking caused between 8-9% of all deaths in South Africa. • About 42 000 people are killed by cigarettes each year. • This is about 4 times more than are killed on our roads,

4. INTRODUCTION: Out of every 100 South Africans killed by smoking: • 28 die of lung diseases (COPD) • 19 of TB • 13 of lung cancer • 12 of heart disease • 10 of mouth and throat cancer • 9 of strokes and vascular disease and • 9 of other conditions Information obtainable from the National Cancer Registry

5. INTRODUCTION • Tobacco increases poverty • About one-third of the poorest households in SA buy cigarettes. • Money that could be spent on food or basic essentials instead goes up in smoke.

6. PURPOSE OF THE BILL To amend the Tobacco Products Control Act, 1993 (Act No 83 of 1993) so as to: • comply with WHO FCTC treaty obligations, • close loopholes in the Act, and • strengthen the Act so as to better protect and promote public health

7. OBJECTS OF THE BILL The Bill seeks to: • amend certain definitions and add new ones. • strengthen the section that prohibits advertising, promotion and sponsorship; • provide for better labeling of tobacco products;

8. OBJECTS OF THE BILL • Set the same product standards for manufacturers and importers of tobacco products; • Prohibit sales to and by those under 18-years; • Extend the provisions prohibiting the free distribution of tobacco products; • Restrict the location of vending machines;

9. To empower the Minister to make regulations regarding the: Health information to be displayed on a package; Notices that may be displayed at point of sale; Display of tobacco products at the point of sale; Quantities that must be contained in a package To set penalties for contraventions; OBJECTS OF THE BILL

10. Section 3 – Advertising, Promotion & Sponsorship • Background: • The 1999 Amendment Act banned tobacco advertising, and promotions. This stopped the industry from making smoking appear as smart, glamorous and sophisticated. • The law helped reduce smoking among children. There was a 17% increase in the number of 13 to 16 year-olds who had never taken even one puff on a cigarette, between 1999 and 2002

11. Section 3 – Advertising, Promotion & Sponsorship More children are not smoking % of grade 8-10s who had never puffed on a cigarette 1999 53% 2002 62% Source: MRC Global Youth Tobacco Survey

12. Section 3 – Advertising, Promotion & Sponsorship • The industry found new ways of targeting children. It has used the Internet, SMSs and ‘viral marketing’ to reach teenagers. • Marketers now go into clubs, campuses and bars andinvite ‘smokers’ to exclusive events like a pop concert, party or a major sporting event.

13. Section 3 – Advertising, Promotion & Sponsorship • The events are supposed to be for smokers, but non-smokers are lured into buying (and smoking) cigarettes in order to get into the ‘select’ group invited to these events. • Promotional activities also involve financial contributions to individuals and organizations such as scholarships, bursaries, etc. • Such donations are not charity but are designed to create a positive business environment for the industry.

14. Section 3 –Advertising, Promotion & Sponsorship • Proposal: • The definition of advertising is broadened, The Act prohibits advertising “designed to promote or publicise a tobacco product”. The Bill proposes prohibiting advertising with ‘the aim, effect or likely effect” of promoting the sale of tobacco products. • It is very difficult to prove what advertisers intentions are but it is easier to show what the effect an advert has.

15. Section 3 –Advertising, Promotion & Sponsorship ii) It will make it more difficult to use ‘viral marketing” or commercial “network marketing” advertising. (ii) The new definition also prohibits the promotion of all forms of tobacco use and not just ‘smoking behaviour’. (iii) The practice of paying film or television producers for depicting tobacco products in the movies, etc, is prohibited by barring ‘product placement’.

16. Section 3 – Advertising, Promotion & Sponsorship Manufacturers and importers of tobacco products will only be allowed to make charitable donations anonymously.

17. Section 3 – Advertising, Promotion & Sponsorship Proposal: Manufacturers will not be allowed to use misleading terms like “light”, “mild” and ‘low-tar”. Reason: many smokers believe that light cigarettes are less dangerous than regular cigarettes. This is not true “light and ‘mild” cigarettes cause cancer and other diseases like regular cigarettes.

18. Section 3–Restriction on place of sale Proposal: Sales of tobacco products in health and educational institutions are to be prohibited. Reason: Hospitals cannot both treat disease and sell products that caused the disease in the first place. Alcohol is not sold in either hospitals or technikons, nor should tobacco be sold there.

19. Section 3–Display of products – Point of sale • Proposal: The display of tobacco products at retails outlets is to be regulated. Self-service displays, which allow customers to handle tobacco products before paying for them are prohibited. • Reason.Retail displays are an important vehicle of promotion for tobacco manufacturers. The Competition Commission has upheld a complaint by Japan Tobacco International (JTI) that British American Tobacco (BAT) bribed retailers to hide JTI brands under the counter. BAT paid R100 000 to hotels to sell its brands exclusively • Self-service displays leads to increased stealing, particularly by youth.

20. Section 3 – Packaging size limitation Proposal: The Minister shall be able to prescribe minimum package sizes. Rationale: Smokers who buy single cigarettes do not receive the health warnings and ‘loose’ cigarettes make cigarettes affordable for children.

21. Section 3A – Standards for manufacture, import and export Proposal: Make the standards that apply to manufacturers of tobacco products under the 2007 Act also apply to importers.

22. Section 4–Sales to minors • Proposal: Raise the minimum age for the legal sale of tobacco products to 18 years. Tobacco may only be sold by those over 18 years. • Reason: The tobacco industry has recommended that this age restriction be raised from 16 to 18 years. • The FCTC requires that youth should not be allowed to sell cigarettes..

23. Section 4–Internet and postal sales Proposal: The sale of cigarettes through the post, Internet or electronic media is prohibited. Reason: Such sales are difficult to monitor and promote evasion of excise tax duty payments.

24. Section 4A–Free Distribution Proposal: Neither manufacturers nor their agents may distribute tobacco products for free. No person shall offer gifts or invite people to participate in sporting, cultural, social or sporting events contingent on the purchase of a tobacco product or for being a smoker. Reason: Stop the practice of promoting tobacco by inviting smokers to parties, night clubs and other events.

25. Section 5–Vending machines Proposal:. The location of vending machines is restricted to designated smoking areas. The sale of non-tobacco products (e.g., chocolates, cool drinks, crisps) from vending machines used for the sale of tobacco products is to be prohibited Reason: These are steps towards reducing purchases by minors. The Tobacco Vending Association made the recommendation on the location vending machines.

26. Section 6–Regulations Proposal: Health warnings on tobacco packaging may include pictures, and markings that help identify illicit products. Reason: This will help people to better understand the risks of tobacco use. It will be particularly useful to those who cannot read. The current health warnings are 12 years old and become commonplace.

27. SA Health Warnings, 1980s

28. SA Health Warnings: 1996

29. Canada, 2000

30. BRAZIL, 2002Smoking causes spontaneous abortion

32. Section 7–Offences and Penalties The Bill introduces the following penalties: • An individual who contravenes sections 2(5), 3(7). (9), (10)(a) or(b) or (11), 4(1), (2), (3), (4)(a) or(b) or (5) or 5 – up to 100 000 • An individual who contravenes sections 3(1), (2),(3), (6), (8),(a) or (b0, 3A, 4(4) or 4A– up to R 1 000 000.