The Competition and Market Authority (AGCM) has announced that it has opened an investigation against Philip Morris for alleged unfair commercial practices. The investigation concerns the promotion of heated tobacco devices such as IQOS, VEEV and ZYN.
The problem is in particular the expressions associated with these devices such as “smoke free”, “a smoke-free future” And “smoke-free products”, which could result, according to what the Antitrust writes:
unclear and omissive for consumers because they refer to products which, despite the absence of combustion, are not free of possible harmful effects on health, nor are they less harmful than others and can create addictions.
AGCM officials, with the help of the Special Antitrust Unit of the Guardia di Finanza, have already carried out inspections at the offices of Philip Morris Italia SpA and Philip Morris Manufacturing & Technology Bologna SpA, to collect information and documents useful for the investigation.
The Antitrust charges
According to the AGCM, the use of terms such as “smoke free”, “a smoke-free future” And “smoke-free products“, may lead consumers to believe that the devices are risk-free, when in reality this is not the case. Heated tobacco products heat tobacco without burning it, reducing smoke and ash, but scientific studies have not yet provided definitive evidence that they are less harmful than traditional cigarettes.
The World Health Organization and other health institutions have expressed concerns about potential health risks and the potential for addiction.
If the violations were confirmed, the AGCM could impose financial penalties and adopt measures to protect consumers.
The precedents
It is not the first time that Philip Morris has ended up in the crosshairs of the Italian Antitrust, and not only that. The company has accumulated some precedents related to unfair commercial practices, again regarding the promotion of its heated tobacco devices as IQOS.
In December 2018, the Competition and Market Authority (AGCM) imposed a fine of 500,000 euros on Philip Morris Italia for having carried out hidden advertising in favor of IQOS. The company had inserted promotional articles in periodical magazines without clearly indicating the advertising nature of the contents, violating the regulations on advertising transparency and consumer protection.
In July 2024, the Paris Court of Appeal upheld a combined fine of 900,000 euros to Philip Morris France and Philip Morris Products for illegal advertising in favor of IQOS. The French authority found that the company had violated national laws on tobacco advertising by promoting the device in a way that did not comply with current regulations.
