Philip Morris Brands Sàrl, Philip Morris Products S.A. and Abal Hermanos S.A. v. Oriental Republic of Uruguay
After passing a series of tobacco control laws, Uruguay instituted two additional regulations on tobacco packaging in 2009. The first requires graphic health warnings on 80% of the front and back of all tobacco products. The second restricts each brand to a single presentation, in order to prohibit brand variants that mislead consumers about the relative safety of tobacco products. Uruguay adopted these policies after the tobacco industry attempted to circumvent Uruguay's ban on the use of the deceptive terms "light," "low tar" and "mild" by using color-coded brand names such as "Marlboro Green (Fresh Mint)." Philip Morris affiliates challenged the regulations in Uruguay's domestic courts, but the Supreme Court upheld them as constitutional.
In addition to the domestic constitutional challenge, Philip Morris affiliates are challenging the regulations as allegedly violating a bilateral investment treaty between Switzerland and Uruguay. An arbitration panel, established under the International Centre on Settlement of Investment Disputes (ICSID), decided that it had jurisdiction to hear this case in July 2013 and instructed the parties to prepare substantive arguments in the case. The decision on jurisdiction did not discuss the merits of the case.
Philip Morris Brands Sàrl, Philip Morris Products S.A. and Abal Hermanos S.A. v. Oriental Republic of Uruguay, ICSID Case No. ARB/10/7, Decision on Jurisdiction (2 July, 2013)
International Centre for Settlement of Investment Disputes
View Case History
Abal Hermanos S.A.
Philip Morris Brands Sarl
Philip Morris Products S.A.
Defendant Oriental Republic of Uruguay
Cited Legislation
Decree No. 287/009 on Health Warnings Ministry of Public Health Ordinance No. 514 Ministry of Public Health on New Pictograms Accompanying Ordinance No. 466
Decision sobre Jurisdiccion en Espanol
Type of Litigation
Trade Panel/Investment Tribunal/Arbitration
Governments may bring complaints before intergovernmental bodies on tobacco-related issues. For example, one country may complain that another country's tax regime discriminates against its exported tobacco products. In some cases, a treaty may allow a private party to file a complaint against a government before an intergovernmental body.
Tobacco Control Topics
Packaging and Labeling Measures
Measures to regulate the marketing on tobacco packages. This includes both bans on false, misleading, deceptive packaging, as well as required health warnings on packaging. (See FCTC Art. 11)
Substantive Issues
Type of Tobacco Product