ONTARIO CAN TACKLE ONLINE CONTRABAND - Potentially 50 per cent of Ontario cigarettes are sold by criminal organizations

TORONTO, Jan. 10, 2025 /CNW/ - Yesterday, Kory McDonald, Head of External Affairs, Rothmans, Benson & Hedges Inc. (RBH) appeared before the Legislative Assembly of Ontario's Standing Committee on Finance and Economic Affairs to outline RBH's recommendations for the 2025 Budget, focusing on a key recommendation to ban the promotion of illegal tobacco products online. This change would mirror recent changes the province made to the Cannabis Control Act.

According to a recent report by Ernst and Young and commissioned by the Convenience Industry Council of Canada (CICC), a growing number of online websites sell and deliver contraband cigarettes anywhere in Canada in violation of Canadian laws. The products often include age and health warnings that mirror past Health Canada requirements on labelling to give an air of legitimacy. Some websites even offer volume discounts for more than one carton purchased. The CICC report cites www.nativecigarettes.ca and www.selectsmokes.se as examples of these sites.

Contraband tobacco represents between 39 and 50 per cent of the total tobacco market in Ontario –meaning that potentially 1 out of every 2 cigarettes sold in our province are illegal. As a direct result of the contraband tobacco market, Ontario lost between $990 million and $1.7 billion in potential tobacco tax revenues between 2019 and 2022.

Ontario's illicit tobacco market is controlled by, and funds organized crime. Criminal groups involved in contraband tobacco use profits generated from the contraband tobacco trade to fund other illegal activities, including guns and drug trafficking, mostly across the USA / Canada border.

Additional Budget 2025 recommendations made by RBH include measures to make smoke-free alternatives more widely available to smokers and an education campaign targeted towards smokers on the impact of contraband tobacco sales on community safety.

QUOTE

"Banning the advertisement of illegal tobacco online is a common-sense step that can have a big impact in terms of slowing the continued growth of the contraband tobacco market and keeping Ontarians safe. As well, there's a need for government to acknowledge harm-reduced product categories within the Tobacco Tax Act to encourage adult consumers to switch to potentially less harmful alternatives to cigarettes. - Kory McDonald, Head, External Affairs, RBH

To learn more about RBH, visit: https://www.rbhinc.ca/

About Rothmans, Benson & Hedges Inc.

Rothmans, Benson & Hedges Inc. (RBH), an affiliate of Philip Morris International Inc., is one of Canada's leading tobacco and nicotine companies and is working to deliver a smoke-free future. RBH is committed to sustainability and creating a positive impact on communities, the economy, and the environment. Currently, RBH employs nearly 800 people across the country with its headquarters in Toronto and a factory in Québec City. Discover more about the company at https://www.rbhinc.ca/ and stay updated on RBH's transformation by following Twitter and LinkedIn.

SOURCE Rothmans, Benson & Hedges Inc.

Media Inquiries: Media Relations, Brayden Akers, Media Relations Lead, [email protected]