Francesca Biagioli The Italian Competition Authority has launched an investigation against Philip Morris Italia for possible unfair commercial practices in the promotion of heated tobacco products, such as IQOS
The Italian Competition Authority (AGCM) has announced the launch of an investigation against Philip Morris for alleged unfair commercial practices. The inquiry concerns the promotion of heated tobacco devices such as IQOS, VEEV and ZYN.
The issue particularly concerns expressions associated with these devices such as “smoke-free”, “a smoke-free future” and “smoke-free products”, which could be, according to what the Antitrust writes:
unclear and misleading for consumers because they refer to products that, although without combustion, are not free from possible harmful health effects, nor are they less harmful than others and can create addiction.
AGCM officials, with the assistance of the Special Antitrust Unit of the Guardia di Finanza, have already carried out inspections at the headquarters of Philip Morris Italia S.p.A. and Philip Morris Manufacturing & Technology Bologna S.p.A., to collect information and documents useful to the investigation.
The antitrust accusations
According to 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 regarding potential health risks and the ability to create addiction.
Should violations be confirmed, AGCM could impose financial penalties and adopt measures to protect consumers.
Previous cases
This is not the first time that Philip Morris has come under scrutiny by the Italian Antitrust, and not only. The company has accumulated several precedents related to unfair commercial practices, always regarding the promotion of its heated tobacco devices such as IQOS.
In December 2018, the Italian Competition Authority (AGCM) imposed a fine of 500,000 euros ($550,000) on Philip Morris Italia for conducting covert advertising in favor of IQOS. The company had placed promotional articles within periodical magazines without clearly indicating the advertising nature of the content, violating regulations on advertising transparency and consumer protection.
In July 2024, the Paris Court of Appeal confirmed a total fine of 900,000 euros ($990,000) to Philip Morris France and Philip Morris Products for illegal advertising in favor of IQOS. The French Authority deemed that the company had violated national laws on tobacco advertising, promoting the device in a manner not compliant with current regulations.
Source: Italian antitrust
