Health1 min read

Australian states could sue tobacco companies for billions in healthcare costs under proposal

By · Via The Guardian · Published by Everything Blog

In short

The strategy targets industry giants such as British American Tobacco, Philip Morris, and Imperial Brands for decades of alleged misleading and deceptive conduct. In addition to recovering hospital expenses dating back to 2000, the funds would support cancer screening and prevention programs across participating states. Territories are excluded from the potential lawsuit due to distinct healthcare funding structures established with the Commonwealth. Health ministers in New South Wales and South Australia are reviewing the blueprint, while other states prioritize illicit trade enforcement.

Key points

  • Using consumer protection laws enables state governments to sidestep common industry defe…: Using consumer protection laws enables state governments to sidestep common industry defenses regarding individual personal responsibility.
  • State governments could secure major funding for cancer screening and preventative health…: State governments could secure major funding for cancer screening and preventative health programs if the joint taskforce succeeds.
  • While jurisdictions like South Australia and New South Wales assess the strategy, other s…: While jurisdictions like South Australia and New South Wales assess the strategy, other states remain focused on illicit tobacco enforcement.

Sources checked by our analysis pipeline: 1

Australian state governments could sue tobacco companies for billions in public hospital and healthcare costs, under a proposal developed by a former barrister who helped legally establish that secondhand smoke causes lung cancer.

The South Australian government is formally seeking advice on the proposal, while other states are reviewing it.

Authored by Sydney Health Law research affiliate Neil Francey, the proposal argues the states could file proceedings in the federal court seeking up to $50bn in compensation for health costs, and to fund cancer screening programs and prevention measures.

It targets the dominant tobacco companies in Australia – British American Tobacco (BAT), Philip Morris and Imperial Brands – and their parent corporations overseas.

Francey is presenting the blueprint at the Clinical Oncology Society of Australia’s annual scientific meeting in Sydney on Thursday, arguing the companies could be held liable for decades of misleading and deceptive conduct under Australian consumer law.

He has also briefed state government MPs. Under the plan, the six state governments would pool their resources to set up a dedicated, joint legal taskforce to run the case.

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