Businessline, which was launched by the Economy Minister, Dar Caoimhe Archibald, provides free, reliable advice to help businesses understand their rights and responsibilities under consumer protection law.

The service offers guidance on a wide range of issues, including the description of goods and services, pricing regulations, online selling rules, requirements around weights and measures, and businesses’ obligations when selling to consumers.

“Businessline is a valuable new resource for local businesses, providing direct access to expert trading standards advice to help them navigate complex regulations,” said the Minister.

“By using the service, businesses can reduce the risk of costly mistakes, strengthen compliance and build consumer confidence. Many businesses do not have in house legal or compliance support. Businessline offers practical, accessible guidance to help them get things right.”

Richard Knipe from the Trading Standards Service said the new helpline would help businesses get things right from the outset.

“The overwhelming majority of businesses want to be fully compliant with trading standards rules. This dedicated helpline will help them get the support they need to ensure they meet those requirements.

“Businesses that understand regulation are better placed to succeed. They reduce the risks associated with non-compliance, deliver better services for customers, and are more likely to achieve long term sustainability, customer satisfaction and repeat business. This is good for businesses and good for consumers.”

Professional trading standards advice can be accessed by contacting Businessline on 0300 077 0323, Monday to Thursday 9am to 5pm and Friday 9am to 4pm, or by emailing tssbusinessline@economy-ni.gov.uk

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A quarter of retailers (26%) state that their store has been negatively impacted due to the sale of illicit tobacco and vapes by other businesses in the area, with 30% of retailers aware of one or more stores within a three-mile radius allegedly selling illicit products.

With two thirds of retailers (67%) also saying that they expect the proposed generational tobacco ban will lead to an increase in illicit tobacco activity**, there is concern within the industry that illegal products will become more prevalent, damaging sales for the majority of hard-working retailers.

Three quarters (76%) of retailers* said that in their view the main reason other retailers sold illicit tobacco or vape products was to boost sales, adding that customers appear increasingly tempted to buy these illicit products because they are cheaper than their legal equivalents.

Sarah Connor, Director of Communications at JTI UK, said: “The sale of illicit tobacco and vapes continues to be a major thorn in the side of legitimate retailers across the UK, taking away thousands of pounds in revenue.

‘DANGEROUS SIDE EFFECTS’

“In the UK, the illegal tobacco trade is already thriving, with 11% of cigarettes and 35% rolling tobacco being smuggled into the UK in 2021/22 according to HMRC^[1]. There is a real risk that the government’s proposed generation ban could exacerbate this, handing money to serious and organised crime groups that manufacture and sell illegal tobacco and vapes.

“The prohibition of legal products always has dangerous side effects and opens the door to criminal gangs to sell illegal products, as we saw in South Africa in 2020 following a temporary ban on tobacco products.

“There is currently a real concern amongst retailers around the policing of illicit trade, and with the proposed generation ban this fear is growing. In fact, 66% told us that they don’t believe the government has the required funding or resources to enforce the legislation and New Zealand, the only country in the world to introduce legislation for a Generational Ban, has chosen to repeal it.

“Retailers can play a vital role in combatting the illicit trade. We’re working closely with our retail partners to ensure that they are knowledgeable and confident in communicating the dangers of illegal products to their customers.”

STRONGER REGULATION

Over two thirds (72%) of retailers surveyed said they would welcome more regulation around the selling of legal tobacco and vaping products. Stricter penalties and fines, more frequent visits from Trading Standards and strengthening border controls to reduce the supply of illegal products into the UK were the most-common responses from retailers in terms of support needed to help tackle the issue of illicit tobacco.

One in three retailers have implemented specific training programmes for their staff to identify and prevent the sale of illicit tobacco and vaping products, but more support from above was identified as necessary. One retailer surveyed went as far to say: “I have been in business for 28 years and Trading Standards has only checked on me and the stock I sell twice, it is not good enough.”

JTI is calling for stronger collaboration between the government and the tobacco industry to prevent the sales of illicit tobacco and vapes.

For retailers concerned about the impact of the proposed generational tobacco ban on illicit activity in their area – they can find their and contact their local MP here: https://members.parliament.uk/findyourmp

If retailers know of a store that is selling illicit tobacco or vapes, they should report them by calling Trading Standards through the Citizen Advice consumer helpline on 0808 223 1133.

For further support, retailers can reach out to JTI’s Customer Care line on 0800 163503 or visit JTI’s trade retailer website https://www.jtiadvance.co.uk/dontbecomplicit.

*Research conducted with 250 independent/symbol convenience retailers for JTI UK on behalf of Acorn Retail Promotions.

** Research conducted with 1,000 independent and symbol convenience retailers for JTI UK on behalf of Acorn Retail Promotions. 

[1] Measuring tax gaps 2023 edition: tax gap estimates for 2021 to 2022. HMRC, June 2023 – https://www.gov.uk/government/statistics/measuring-tax-gaps.

The post Illicit tobacco and vapes on the rise with generation ban expected to fan flames of illegal activity JTI research reveals first appeared on Neighbourhood Retailer.

More than 27 million cigarettes and 7500kg of hand-rolling tobacco were seized under Operation CeCe in its first two years, HM Revenue and Customs (HMRC) and National Trading Standards have revealed.

This comes as new powers come into force, which could see penalties of up to £10,000 for any businesses and individuals who sell illicit tobacco products. They bolster the government’s efforts to tackle the illicit tobacco market and reduce tobacco duty fraud.

There are some operational differences across the UK in the enforcement activities undertaken by Trading Standards and local authorities. In Northern Ireland illicit tobacco sales are mainly enforced by HMRC, PSNI and local councils. The new penalties and sanctions apply UK-wide.

NEW POWERS

The new powers will also see Local Authority Trading Standards given the ability to refer cases to HMRC for further investigation. HMRC, where appropriate, will administer the penalties and ensure the appropriate sanction is applied and enforced.

Operation CeCe is a joint HMRC-National Trading Standards operation which has been working to seize illicit tobacco since January 2021.

Although large criminal gangs coordinate the supply of illicit tobacco, most illicit sales are made by small-scale operators, usually retail outlets and individuals. This makes the scale of illicit distribution difficult to contain.

High duty rates reduce the affordability of tobacco products and so support the government’s public health objective to reduce smoking prevalence, HMRC states.

‘We welcome this addition to our toolkit of measures to tackle illegal tobacco, ensuring that those who seek to profit from supplying these products face substantial penalties for doing so’

Illicit sales damage legitimate business, undermine public health and facilitate the supply of tobacco to young people.

The Federation of Independent Retailers (the Fed) welcomed the new sanctions and said it was pleased to see tougher actions now being taken.

The Fed’s national vice president, Mo Razzaq said: “We welcome these new powers and penalties as illicit tobacco is a big issue for local shops which does irreparable damage to members’ businesses and to the communities that they serve. Our livelihoods are threatened, through loss of sales and increases in anti-social behaviour.

‘DISRUPT CRIMINALITY’

“Our members are responsible retailers and verify the age of their customers before selling them tobacco products. Those behind the illicit trade make no such checks, happily selling their products to young people.

“But that’s not our only concern. The health and safety of people who smoke counterfeit cigarettes is seriously at risk from the highly unpleasant ingredients they can contain.”

Lead office for the Chartered Trading Standards Institute, Kate Pike added: “Trading Standards officers across the country work with colleagues in Public Health to reduce the harm from smoking and with enforcement partners to disrupt criminality in our communities.

“We welcome this addition to our toolkit of measures to tackle illegal tobacco, ensuring that those who seek to profit from supplying these products face substantial penalties for doing so, and their ability to continue to trade is severely impacted.”

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Two convenience stores (Supersave Xpress in Harlesden and Maxi Food and Wine in Southgate) were told by Japan Tobacco International (JTI) that they were withdrawing support after they were found guilty of selling illegal tobacco.

Supersave Xpress was ordered to pay £6000 by Brent council’s Trading Standards team after 400 packets of illicit cigarettes were found on the site, including some counterfeit products.

Maxi Food and Wine had its licence to sell alcohol suspended for a three-month period after illegal cigarettes, vapes and Viagra were seized from the site following a test purchase exercise run by Trading Standards.

NO FURTHER SUPPORT

JTI UK wrote letters to both stores informing them that their Business Advisers will no longer be available to visit and no further support will be offered by the tobacco manufacturer.

Ian Howell, fiscal and regulatory affairs manager at JTI, said he hoped the stores’ other suppliers would follow suit.

“JTI’s swift response to the criminal activity seen in these cases demonstrates our commitment to backing the actions of Trading Standards in tackling the distribution and sale of illegal tobacco.

“We hope that other businesses supplying services to these stores will follow our lead and withdraw their support too,” he added.

He also praised progress on powers to give Trading Standards powers to take on the illicit trade, something JTI has lobbied MPs for.

‘It is imperative that honest retailers do their part to help by reporting any information they have about the sale of illegal tobacco or vapes’

Ian Howell, JTI UK

“With sales of illegal tobacco on the increase it is good to see that later this year Trading Standards will be given new powers that will allow them to issue ‘on-the-spot’ fines of up to £10,000 against any business selling illegal tobacco.

“It is imperative that honest retailers do their part to help by reporting any information they have about the sale of illegal tobacco or vapes to their local Trading Standards department through the Citizens Advice consumer helpline on 0808 223 1133.”

For further support, retailers can reach out to JTI’s Customer Care line on 0800 163503 or visit JTI’s trade retailer website https://www.jtiadvance.co.uk/dontbecomplicit.

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Japan Tobacco International (JTI) made the calls after it was revealed illegal tobacco trading has cost £51.3bn in lost revenue since 2000.

JTI presented its findings to MPs at a Parliamentary reception and also revealed evidence of 95 stores in north-west England selling illegal cigarettes, hand rolling tobacco and vapes.

One of the locations identified had been actively selling illegal tobacco since 2015.

Their research found counterfeit versions of a JTI hand rolling tobacco brand being sold for £4, compared to a retail price of £29 – resulting in the Government losing out on approximately £20 in taxes for each pack sold.

Recent JTI research also found that in the last month alone, over a third of smokers have bought tobacco products that were not in the plain packs legally required in the UK.

Fiscal and regulatory affairs manager at JTI, Ian Howell, outlined the extend of the issue.

“While Border Force prevents the smuggling of illicit tobacco into the country and HMRC conducts large-scale operations that can lead to the uncovering of major illegal manufacturing sites, it is Trading Standards that undertake the lion’s share of enforcement action on the UK’s High Streets.

“Unfortunately, despite efforts such as Operation CeCe or the Keep It Out campaign, Trading Standards is overwhelmed by the scale of the problem. They do not have access to easy to apply, hard-hitting financial sanctions that would help tackle the persistent actions of rogue retailers who are currently undeterred.

“Selling illicit tobacco and vaping products puts retailers at risk of prosecution and negatively impacts their store in the community, which is why we created JTI’s ‘Don’t be Complicit’ campaign to raise awareness and give them the resources to combat this illegal trade,” he added.

If retailers know of a store that is selling illicit tobacco or vapes, they must report them to Trading Standards through the Citizen Advice consumer helpline on 0808 223 1133.

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