EU Overturns Ban on Tobacco Ads

European Court of Justice Annuls Ban on Tobacco Ads, Sponsorships

Ruling decries improper legal justification

Luxembourg, October 5, 2000 - The Court of Justice of the European Community annulled a directive which prohibited advertising and sponsorship of tobacco products on the grounds that the Community Legislature was not empowered to adopt it on the basis of provisions relating to establishment of the internal market, freedom of establishment and freedom to provide services. This ruling may have an important effect on sports, where tobacco advertising and sponsorship has traditionally been an important source of revenue.

This ruling rejected the European Parliament's July 1998 directive because it likely to give rise to barriers of the movement of media products. The CL hoped that a directive prohibiting the advertising of tobacco products could be adopted on the premise that it would ensure the free movement of press products (e.g.periodicals, magazines and newspapers). That would be incorrect.

The two cases, Federal Republic of Germany v European Parliament and Council of the European Union, Case C-376/98 [click here] and Regina v Secretary of State for Health, ex parte Imperial Tobacco Ltd and Others, Case C-74/99 [click here], were brought by tobacco companies. The court had to determine whether the directive actually contributed to the elimination of obstacles to the free movement of goods and the freedom to provide services. The Court sided with the Federal Republic of Germany and the tobacco producers and found that the prohibitions on the types of advertising of tobacco products listed by the CL did not help facilitate trade of these products.

Despite the rulings, the International Motor Associationannounced a voluntary ban on tobacco advertising and sponsorship [click here for story].

Nate Allen