Australian states could sue tobacco companies for billions in healthcare costs under proposal
Australian state governments could sue tobacco companies for up to $50 billion in public healthcare costs under a new legal proposal.
The proposal, authored by Sydney Health Law research affiliate Neil Francey, argues that states could file proceedings in the federal court seeking compensation for health costs and to fund cancer screening programs. It targets the dominant tobacco companies in Australia – British American Tobacco (BAT), Philip Morris and Imperial Brands – and their parent corporations overseas.
Francey is presenting the blueprint at the Clinical Oncology Society of Australia's annual scientific meeting in Sydney, arguing the companies could be held liable for decades of misleading and deceptive conduct under Australian consumer law.
Legal Strategy
Under the plan, the six state governments would pool resources to set up a dedicated, joint legal taskforce to run the case. The proposal seeks to recover healthcare costs incurred since 2000, when internal tobacco industry documents revealed the industry knew smoking caused serious diseases but colluded to cover up the evidence.
For decades, the tobacco industry has unjustly enriched itself while distracting and confusing smokers about the harms and addictiveness of their product.
Industry Response
A BAT Australia spokesperson said the company does not comment on potential or pending legal claims, while Philip Morris and Imperial Brands did not respond to requests for comment. Francey noted the proposal excludes the Northern Territory and the ACT due to differences in healthcare funding arrangements.
Francey has a history of successful tobacco litigation. In 1991, he represented consumers in a federal court case triggered by a Tobacco Institute of Australia advertisement claiming there was "nothing which proves scientifically that cigarette smoke causes disease in nonsmokers". The court found the industry's claims unlawful.
Government Consideration
The South Australian government is formally seeking advice on the proposal, while other states are reviewing it. South Australian health minister Blair Boyer said there was a "substantial" public interest in measures reducing the harms that tobacco-related diseases place on governments, health systems and communities.
Boyer emphasized the importance of due diligence: "While this proposal draws on historic findings regarding misleading and deceptive conduct by the tobacco industry, it is important that the state does its own due diligence." Francey believes the figure could be "in the order of fifty billion, possibly even more."
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