Tobacco companies British American Tobacco Australia and Philip Morris have agreed to remove terms such as light and mild from their products and will contribute $8m to anti-smoking campaigns and programs.
The Australian Competition and Consumer Commission obtained the court-enforceable undertakings from the two tobacco giants following its investigation into the use of such terms.
The ACCC found that the companies as well as Imperial Tobacco Autralia was misleading consumers by its marketing of low yield cigarettes had certain health benefits in comparison to regular or higher yield cigarettes.
The ACCC said it believed the claimed health benefits of low yield cigarettes compared to high yield cigarettes were misleading and likely to breach the Trades Practices Act.