Imperial Canada Explains First Nations Lawsuit

Source from:  Tobacco Reporter 06/27/2011

Imperial Tobacco Canada, currently a defendant along with other manufacturers in the government of Ontario's health care cost recovery suit, has recently filed a lawsuit against 18 First Nations tobacco manufacturing and distribution companies aimed at including them as third-parties in the government of Ontario's lawsuit. News of the Imperial lawsuit was published in the Montreal Gazette on June 17 and relayed here on Monday. Now, Imperial has issued a press note on its website. "There are no reasons why tobacco manufacturers on First Nation Reserves should be treated any differently than the legal manufacturers, and this is what this lawsuit is all about," the note says. "These manufacturers produce and sell tobacco products in Ontario and this is why they should stand next to Canadian tobacco manufacturers and respond to the allegations made by the government of Ontario against tobacco companies." "They currently represent more than a third of the volume of cigarettes sold in Ontario." "Imperial Tobacco Canada is also seeking $1.5 billion dollars in compensation from some First Nation manufacturers as a result of [alleged] illegal competition." "The RCMP estimates there are over 50 illegal tobacco manufacturing operations in Canada and more than 300 smoke shacks on First Nation reserves selling tobacco without applying many of the tobacco laws and regulations." "It is still inexplicable how the government of Canada and the government of Ontario can continue to turn a blind-eye on these illegal activities that are undermining tobacco regulations." "This is why Imperial Tobacco Canada has decided to take action and file this lawsuit." Enditem