Renault Main Sponsor Hit by Tobacco Ban
The Renault Formula One team look set to be forced to change their name next year after it was announced cigarette brands such as Marlboro Lights and Mild Seven will be banned in the European Union from October after the EU's top court threw out a bid by two tobacco firms to challenge a tough new law.
The Renault Formula One team look set to be forced to change their name next year after it was announced cigarette brands such as Marlboro Lights and Mild Seven will be banned in the European Union from October after the EU's top court threw out a bid by two tobacco firms to challenge a tough new law.
The European Court of Justice said a ban on descriptions such as "light" and "mild" on products marketed within the EU was appropriate to protect public health, although analysts said manufacturers would find other ways to differentiate cigarette strengths.
"The ban is not disproportionate," the court said in a statement on Tuesday. "It is not clear that merely regulating those descriptions would have been as effective in ensuring that consumers receive objective information."
The French Formula One team are officially entered as Mild Seven Renault F1 and the Japanese company is their main sponsor.
The court rejected a claim that the law was invalid because the EU does not have the power to legislate on health policy, and upheld it as an attempt to harmonise standards in the bloc.
Japan Tobacco Inc., owner of Mild Seven, said it would be particularly hit by the court ruling. The company said it was extremely disappointed by the decision by Europe's highest court, which affects what it calls an integral part of its cigarette trademark.
"It effectively seems to prevent us from marketing Mild Seven as a global brand," the firm's public relations vice president Guy Cote said in a statement. "Mild Seven is the only global brand that will be impacted in this way."
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