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LONDON — Six retailers and tobacco firms have agreed to pay combined fines of more than 130 million pounds after admitting "unlawful practices" relating to retail tobacco prices, the Office of Fair Trading said.

Retailers Asda, Somerfield, First Quench, One Stop Stores and TM Retail plus manufacturer Gallaher agreed to pay 132.3 million pounds (165 million euros, 263 million dollars).

The fines come after the competition watchdog accused 12 firms of price-fixing, by either co-ordinating to link the price of some brands to rival products or exchanging proposed future retail prices between competitors.

An investigation into the six other firms named by the OFT three months ago — the Co-operative Group, Imperial Tobacco, Morrisons, Safeway, Shell and Tesco — is continuing.

OFT chief executive John Fingleton said in a statement Friday evening that companies should set their prices independently, to ensure the markets work well for consumers and the economy.

"The OFT is very pleased that the early co-operation of these parties has enabled the swift resolution of some of this case, which will significantly reduce the costs of pursuing the investigation for the OFT and the businesses concerned," he added.

The OFT investigation covered the period 2000-3. The companies which came to "early resolution agreements" led to a reduction in their fines, the watchdog said.

Even so, the Financial Times said Saturday the sum was still the biggest collective penalty the OFT had handed down.

Imperial Tobacco Group Plc, Europe’s second-largest publicly traded cigarette maker, plans to cut 2,440 European jobs after buying Altadis SA for 12.6 billion euros ($20 billion) earlier this year.

Six of 58 factories will shut as staff numbers fall by about 6 percent, Imperial said today. The plants slated for closure are located in its hometown of Bristol, England, as well as Spain, France, Germany and Slovakia. The maker of Davidoff cigarettes fell 3.3 percent in London trading as the plan failed to persuade some analysts to lift their savings estimates.

Western European tobacco companies have eliminated jobs as governments restrict smoking and advertisements. Gareth Davis, Imperial’s chief executive officer since the company was spun off from Hanson Plc in 1996, has beat cost-savings goals consistently since the cigarette maker bought German rival Reemtsma in 2002 and then cut 4.4 percent of its jobs.

Expectations for today’s announcement “got carried away,'’ wrote Jonathan Leinster, an analyst at UBS in London, who repeated his “sell'’ rating on the stock today. He left his savings estimates unchanged and said he’s “not satisfied'’ with expense reduction related to the Altadis merger.

Almost half of the job cuts, or 1,060 positions, will take place in France, equating to almost a quarter of Imperial’s local payroll. The company stuck to forecasts for expenses of 600 million euros for the reductions and plant closings and annual cost savings of 400 million euros by the year through September 2012.

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Imperial fell 64 pence to 1,879 pence in London trading. The stock has declined 20 percent in 2008 after rising more than sixfold in the prior eight years.

The cigarette maker will need to negotiate with unions over the job cuts and gain approval from the French and Spanish governments. Plans to reduce payrolls have sparked strikes this year by French workers from hospital staff to employees of newspaper Le Monde.

“They’re brutally tearing the company apart,'’ Jorge Tome, a representative of Spain’s Comisiones Obreras union, said in an e-mailed statement. “Once again they’re showing that the only thing that counts is profit and not a social commitment.'’

The takeover of Madrid-based Altadis added about 27,000 employees to Imperial’s work force. The Iberian company, which was formed when Spain and France merged their tobacco monopolies in 1999, makes cigarettes under brands including Gauloises and Gitanes and also is the world’s largest cigar manufacturer.

Toronto - Thanks to a new law, which came into effect over the weekend, cigarettes are no longer visible to customers at stores across Ontario.

The new law requires stores to keep the packages out of view.

“This marketing tool … is a wall of temptation for smokers who have made the decision to quit,” said Joanne Di Nardo, spokeswoman for the Ontario Tobacco-Free Network. “Well-documented research and evidence shows that these retail display stands increase tobacco sales by 12 percent to 28 percent.”

When asked how it has effected sales so far, one store in Toronto told EON, “oh…people just laugh….hasn’t stopped anyone from buying their smokes.”

Other provinces are expected to implement a similiar program

As many as 40 people from the small provision shops and supermarkets in the Belait District attended the Tobacco Order Briefing held at the multipurpose hall of the Health Office yesterday.
The briefing was presented by Senior Medical Officer of the Tobacco Control Unit, Hj Rozaimi Hj Tengah. The briefing was mainly aimed at enhancing participants’ understanding in protecting public health as well as to gain their cooperation with regard to the Tobacco Order to be implemented come June 1.
Business owners were also briefed on cigarettes sales, licences and rules and regulations governing such business. Under Section 2 of the Controlling of Local Products Act, it is prohibited to sell cigarettes to those under 18 years of age (Chapter 9), by which any form of identification will be asked before purchase. Those who breach the rule will face a fine of up to B$5,000.
If any of the said conditions under the Tobacco Order 2005 and its regulations 2007 go unheeded, business owners’ licences will be revoked or suspended.

State Treasurer Scott Meacham says he would support the idea of having one single compact rate for all American Indian tribes that sell cigarettesin Oklahoma.
Meacham says he is not bailing out on a multiple-stamp system, but it would be easier to enforce a single rate. He believes that would help Oklahoma move forward with cutting down on smoking while raising more money to benefit better health in the state.
Attorneys from the Oklahoma Tax Commission and tribal smoke shops are currently working on an agreement that would limit the sales of low-tax cigarettes in the state.
The agreement would lift a restraining order and cut down on the number of cigarettes that can be sold with 6-cent tax stamps intended for use near the state’s borders.
Smoke shops that aren’t near a border must sell 86-cent stamps.

MUMBAI/KOLKATA: With the government yet to budge on the tobacco industry’s demands, Kolkata-based ITC is readying for a possible hike in prices of non-filter cigarettes. The company, which is believed to have stopped production of the variety, is contemplating this move, as an extended closure would mean huge losses for the company and for those dependent on it.
Sources say ITC plans to hike prices soon and the product with the new price tag would be made available in the market by the end of this quarter. The company is also likely to resume production by then. ITC officials were not available for comment.
In his last Budget, finance minister P Chidambaram increased excise duty on non-filter cigarettes to bring them on a par with filter cigarettes. For cigarettes between 60 mm and 70 mm length, excise duty was increased from Rs 546 to Rs 1,323 per 1,000 cigarettes while for cigarettes below 60 mm, it went up from Rs 168 to Rs 819 per 1,000 cigarettes.
As per an analyst with a local brokerage firm, the company would only look at a price hike if the conversion rate to filter cigarettes is quite low. “The company is adopting a wait-and-watch policy as far as conversion from non-filter to filter cigarettes is concerned. If the conversion is quite low, then the company would not consider it,” Anand Mour of Prabhudas Lilladher said.

In a victory for the tobacco industry, a federal appeals court threw out on Thursday an $800 billion class-action lawsuit on behalf of smokers who said they had been misled that light cigarettes were safer than regular ones.
Plaintiffs’ lawyers wanted to represent millions of people across the country who had smoked light cigarettes. But the court, saying it was impossible to generalize about why smokers chose light cigarettes, ruled that the group could not be treated as a class. Instead, smokers wanting to sue over the issue would have to do so individually.
There might be various reasons for a smoker to choose a light brand other than “the belief that lights were a healthier alternative,” the ruling said. Other possibilities are that a lights smoker “was unaware of that representation, preferred the taste of lights, or chose lights as an expression of personal style.”
Even though the ruling had been generally expected, and tobacco company stocks were little affected by the decision, analysts still viewed it as positive for the industry.
Several experts said the ruling, the latest in a string of industry victories in cases involving light cigarettes, relieved the tobacco industry of potentially billions in damages and could also deter other similar class-action lawsuits around the country. “It may be persuasive to judges around the country who might well be watching it,” said Carl W. Tobias, a law professor at the University of Richmond.

AUGUSTA — Health groups urged lawmakers Wednesday to increase the cigarettes tax by a $1 per pack, saying the increase will encourage more people to quit smoking and generate more money for health programs.
Health Policy Partners of Maine, which includes heart, lung and cancer groups, also announced survey results that show 76 percent of Mainers support a cigarette tax increase.
"Maine people understand the importance of high tobacco prices and are counting on their state legislators to use this powerful tool to reduce the physical and financial toll of tobacco use," said Ed Miller, CEO of the American Lung Association in Maine.
If Maine increases the state cigarette tax from $2 to $3 per pack, it would be the highest state tax in the country. Miller said other states, such as New York, are also considering tobacco tax increases.
The announcement came just one day after Gov. John Baldacci said he would support increasing the cigarettes tax to help pay for the state’s Dirigo Health program. Last year, Baldacci proposed a $1 per pack increase as part of the budget, but it was rejected by lawmakers.
This time around, House Majority Leader Hannah Pingree, D-North Haven, is sponsoring a bill to make changes to state health insurance laws in an attempt to lower the cost of health care in the state. Her bill includes a 50-cent-per-pack tax increase on cigarettes to help fund Dirigo Health, the state’s insurance program for individuals and small businesses.
Miller and others who gathered in the Statehouse Hall of Flags said they would support using some of the money for Dirigo Health and the rest for other health-related programs. "This is health policy," Miller said. "It’s not tax policy."
On the other side of the issue, smokers who stopped by the Maine Smoke Shop in Augusta said they feel singled out by the state. "I think they ought to back off the smokers for a while and go after the drinkers," said Charles McKenney, of Augusta. Sheila Tondreau, also of Augusta, said a tax increase is not a good idea.
"It’s always us that gets hit," she said. "You don’t see them taxing all these other people." Chris Jackson of the Maine Oil Dealers Association said convenience stores represented by the association have been hurt by past tobacco tax increases. "For small retailers, this is not about smoking or Dirigo Health, it’s about trying to stay competitive with our counterparts in New Hampshire," he said.
Jackson said convenience store owners with shops in Maine and New Hampshire saw cigarette sales drop here but increase in New Hampshire after the last tax hike. In 2005, Maine lawmakers set the current tax at $2 per pack. Jackson also said cigarette taxes are not a stable source of funding. "We think it’s unfair to mislead people to think Dirigo Health would have a reliable source of funding if the tobacco tax passed," he said.
Members of the health coalition said increasing the tax by another dollar will bring in an additional $64 million a year in revenue to the state. In addition, they say it will compel some people to stop smoking because they can no longer afford it, and that it will cut health care costs caused by smoking-related illnesses. "This is about Maine’s future," said Megan Hannan of the American Cancer Society. "We need to raise the price of cigarettes as soon as possible."

Increasing Florida’s outdated tax on cigarettes would have been wise a few years ago when the economy was soaring. It’s even better idea now as lawmakers struggle to cover a budget shortfall and find money for essential needs like health care. Last summer, Gov. Charlie Crist politely described as "innovative" a proposal to boost the state’s cigarettes tax for the first time since 1990, but quickly added, "I’m not for raising taxes, as you know."
Meanwhile, just about everything else seems to be fair game for a hike. Five years ago, the Republican-controlled Legislature raised $150 million extra by increasing fees paid by drivers, college students, Medicaid patients, cell-phone users, hunters and mobile-home residents. Cigarette taxes remained unchanged.
Crist’s attitude has varied only slightly. Asked about two weeks ago whether the state should consider a cigarette tax this year, Crist replied, "No. No new taxes. What I think we need to do is be innovative." The overall mood in Tallahassee, however, has changed substantially over the past year - and with good reason.
About two weeks ago, the Legislature chopped $512 million from the current fiscal year’s budget - which is now $1.5 billion less than when it was approved last May.
Lawmakers now have to write a budget for the fiscal year that starts July 1. And they found out recently that they’ll have nearly $2 billion less to work with that they previously expected. In other words, the Legislature will either have to make even deeper cuts in essential state services, or find new sources of revenue.

Ontario should follow the leads of New Brunswick and British Columbia and pass legislation enabling it to sue the big cigarettes companies to recover health-care costs associated with tobacco-related diseases. The way has been paved by those two provinces, and some American states, and it makes no sense for Ontario not to follow suit in a bid to recoup some of the funds paid by taxpayers that are directly attributable to the use of a cigarettes product.
Make no mistake, the big tobacco companies knew decades ago that their products are deadly. Heart disease, stroke, high blood pressure, cancer - the list of tobacco health ills goes on.
Dr. Richard Schabas, medical officer of health for the Hastings and Prince Edward Counties Health Unit, was one of about 100 mostly health officials who, in a letter sent about two years ago, urged Premier Dalton McGuinty to file the lawsuit.
The province declined without really explaining why. McGuinty should spell out the reasons for his decision to Ontarians.
New Brunswick passed legislation earlier this month that gave the province the legal authority to file the lawsuit against the tobacco companies. Attorney General T.J. Burke said those firms must be held accountable and that the province is moving ahead "aggressively with legal action."
Why not Ontario?
The Liberals imposed a new health tax in 2004, $750 deducted annually from pay and pensions in the form of an income tax. The government said the tax was necessary to keep the expensive health-care system running. Yet the lawsuit is a potential source of income that could negate the need for a regressive tax and provide funds to pump into health care - a system that is straining to counter the effects that tobacco has brought on our hospitals and cancer care system. Tapping into tobacco riches is the way to go - clearly provincial citizens deserve and need the money.
In Ontario, it is estimated that tobacco-related diseases cost the economy at least $1.7 billion in health-care annually, result in more than $2.6 billion in productivity losses and account for at least 500,000 hospital days each year, according to the Ministry of Health and Long-Term Care.
Meanwhile, tobacco taxes generated about $1.4 billion in 2004-05, the ministry estimated. Ontario is clearly losing more in health-care to tobacco than the weed is bringing into provincial tax coffers. For tax masters like McGuinty, that should tip the balance in favour of legal action.
Schabas made the point - correctly - that if a lawsuit is filed, it places tobacco companies in financial jeopardy.