Legislation was proposed on March 4, 2009 that would give Ontario the legal standing to sue cigarette companies in order to recover the money spent on tobacco related illnesses in Ontario. Approximately $1.6 billion dollars is spent every year by Ontario tax-payers in relation to smoking related illnesses. The new legislation introduced by Attorney General Chris Bentley would allow the Ontario government to seek billions of dollars in damages from the 3 biggest Canadian cigarette manufacturers: Imperial Tobacco, Rothmans, Benson and Hedges, and JTI-Macdonald. British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Saskatchewan and Manitoba have all passed similar legislation. JTI-Macdonald is currently under bankruptcy protection which means Ontario has to act now or they lose their opportunity to sue this company. British Columbia has to get permission from the court to pursue this company in their claim.
The proposed legislation would allow Ontario to sue the tobacco companies for alleged wrong-doings by the companies and holding them accountable. British Columbia already has a bill that suggests the tobacco companies marketed light cigarettes as safer than the regular ones, as well as targeting their advertising towards children. It is also alleged that the companies conspired to hold back research regarding the harmful effects of smoking tobacco and undermining the health warnings that had been issued. These allegations have not been proven yet in court. Premier McGuinty has stated that Ontario is ready to sue the tobacco companies due to British Columbia's successes.
The proposed bill would give the Ontario government the right to sue the companies directly for any alleged wrong-doing as well as to allocate liability by market share and measure the health-care cost to taxpayers regarding tobacco-related illnesses. A successful lawsuit could potentially bring in a settlement as much as $60 billion dollars. The lawsuit could also bring about protective changes, i.e. no longer being able to use cartoon characters in their advertising that are targeted towards young Canadians, as well as other restrictions. A successful lawsuit would hold the companies accountable for health-care costs, which currently are estimated at $1.6 billion per year. Deaths due to tobacco related illnesses in Ontario are estimated at 13,000 per year or almost 36 deaths per day and almost 500,000 hospital days annually. The amount of money spent by the government in providing health-care for smoking related illnesses could provide funding for 8 large community hospitals or a year's funding for 2,000 MRI units.
4 U.S. states pursued the first lawsuit against tobacco companies in the mid-1990s, which ultimately led to a 50-state Master Settlement Agreement in 1999 with the tobacco industry. In this settlement, the tobacco industry agreed to pay $246 billion over a 25 year period for health-care costs incurred from use of their products. It also led to restrictions regarding advertising that was directed towards minors.
This proposed legislation follows other government initiatives to prevent Canadians from being exposed to second hand smoke. Currently in Ontario smoking is banned in all workplaces, as well as public areas such as bars and restaurants. A very recent ban made it a finable offence to smoke in a vehicle when minor passengers are present. As well, higher taxes for tobacco products are a deterrent for those who are unwilling to pay as much as $8 for one pack of cigarettes. Smokers also pay higher premiums for their health and life insurance policies, due to the increased health risk. Smokers who have quit for a year are entitled to have these premiums reassessed due to being eligible for a better health status. If you have recently quit smoking, consult with your broker to see when you can apply for a decrease in your premiums. For those who want to quit, consult websites such as the
Canadian Cancer Society for help as well as support.