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LONDON - Six companies will pay a maximum of 173.3 million pounds ($342.5 million) after admitting unlawful practices relating to the retail price of cigarettes in the UK, under a deal with Britain’s Office of Fair Trading (OFT).

Japan Tobacco said its Gallaher unit had agreed to pay 93 million pounds for taking part in anti-competitive practices during 2000 to 2003, before the Tokyo-based cigarette group bought the British tobacco company in 2007.

The other five groups, all retailers, were Wal-Mart-owned Asda, First Quench, One Stop Stores (formerly called T&S Stores), Somerfield and TM Retail, a statement by the British regulator said on Friday.

A number of the six parties had previously applied to the OFT for leniency and the total penalties the groups agreed to pay, if all leniency and early resolution discounts are given, is 132.2 million pounds, rather that the pre-discount penalties total of 173.3 million pounds, the OFT said.

The OFT did not say when a final decision on the level of fines would be taken.

The regulator added that supermarket group Sainsbury Plc was the first to apply to the OFT for leniency and will receive complete immunity if it continues to co-operate.

Investigations will continue against Imperial Tobacco Plc, Shell and retailers Morrisons, Morrisons-owned Safeway, Tesco and the Co-operative Group, the OFT said.

Imperial Tobacco said in a statement it had not admitted to any infringement of competition law and had not acted in any way contrary to the interests of consumers. It said it would continue to co-operate with the OFT. (Editing by Mike Elliott and David Holmes)

TOKYO, - Japan Tobacco Inc, the world’s No. 3 tobacco maker, said it may raise the price of Marlboro cigarettes– its first non-tax linked hike in 15 years — to help offset nine straight years of a shrinking market.
The increase would come on top of rises in everything from gasoline to beer and noodles that have already burdened consumers in the world’s second-largest economy.
Japan Tobacco, which is half-owned by the Japanese government, has seen costs rise even as it grapples with an ageing population and widening health consciousness that have reduced the ranks of smokers.
It is also suffering from the yen’s surge against the dollar and fallout from a food scare earlier this year involving pesticide-contaminated dumplings it imported from China.
"First we want to try to reduce our costs, then we want to shift customers to higher-priced, value-added products," spokeswoman Yukiko Seto said on Friday .
"After that, we might consider that sort of thing," she added, confirming a Nikkei business daily story quoting Japan Tobacco President Hiroshi Kimura as saying price hikes were an option.
If the company raises Marlboro cigarettes prices, it will be the first time since 1993 that a price increase has not been linked to taxes. Japan Tobacco makes Mild Seven cigarettes and owns the Camel, Winston and Salem brands outside of the United States.

More people are killed in fires started by unattended cigarettes in the United States than any other kind of fire. Those numbers, however, may drop thanks to a new kind of cigarette.

They are called "fire-safe" cigarettes. Legislators are expected to pass a law that would prohibit the sale of any other kind of cigarette in Hawaii.

The latest numbers from the National Fire Protection Association show cigarettes started more than 82,400 fires in the U.S. in 2005. Those fires killed 800 people and injured more than 1,660 people.

The most common fuel for those fires … mattresses. People fall asleep in bed while smoking and some mattresses burn very quickly.

So a new generation of cigarettes has been developed.

They are called "fire-safe" cigarettes, or LIPs which stands for low ignition propensity.

"It’s a cigarette that when you don’t smoke it, you’re talking … you set it down, it’ll go out. It won’t keep burning like traditional cigarettes do," said Christopher Maxwell, who owns a store called Tobaccos of Hawaii on Atkinson Street.

LIP cigarettes are made with bands of thicker paper. Those bands act like speed bumps to slow the burn making them less likely to start fires.

If legislators pass the proposed "fire-safe" cigarette bill as expected, LIP cigarettes will be the only kind of cigarette you will be able to buy in Hawaii beginning Oct. 1, 2009.

Maxwell already sells lots of the "fire-safe" smokes.

"No one’s given me any negative feedback. There’s obviously no flavor difference. Most people don’t even know it’s going on. Virtually the entire cigarette industry is going to LIP cigarettes," Maxwell told KGMB9.

A spokesman for the Honolulu Fire Department said LIP cigarettes are a step in the right direction, but smokers still need to adhere to safety rules. Never smoke in bed. Smoke outside instead of indoors. And keep matches and lighters out of sight and reach of children.

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."