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TOBACCO AMENDMENT (SHOPPER LOYALTY SCHEMES) BILL 2012

 Tobacco Amendment (Shopper Loyalty
          Schemes) Bill 2012

                        Introduction Print


              EXPLANATORY MEMORANDUM


                                  General
The Bill amends the Tobacco Act 1987 to limit further the operation of
shopper loyalty schemes in relation to the sale of tobacco products.

                               Clause Notes
Clause 1   sets out the purpose of the Bill.
           The Tobacco Amendment (Shopper Loyalty Schemes) Bill 2012
           provides for further limitations on the operation of shopper
           loyalty schemes in relation to the sale of tobacco products.
           Shopper loyalty schemes are structured marketing schemes that
           reward particular buying behaviour. They include promotions
           by tobacco retailers whereby points are allocated to customers.
           The number of points allocated depends on the dollar amount
           spent in store which can then be exchanged for gift cards or
           merchandise. Some schemes provide fuel discount coupons with
           purchases over a certain dollar amount. Shopper loyalty schemes
           also include rewards offered by banks and other financial
           services to customers based on the method of payment used, such
           as the use of a particular credit card.

Clause 2   is the commencement provision.
           The Bill will come into effect on a day to be proclaimed, or on
           1 March 2013 if not proclaimed before that date.




571233                                1        BILL LA INTRODUCTION 9/10/2012

 


 

Clause 3 amends section 7 of the Tobacco Act 1987 by substituting a new heading and a new subsection (2) into the Tobacco Act 1987. The new heading, "Competitions, rewards and shopper loyalty schemes" better reflects the subject matter of section 7 of the Tobacco Act 1987. The Bill substitutes a new section 7(2) into the Tobacco Act 1987. The new subsection (2) provides that it is a defence to proceedings for an offence against section 7(1) to prove that it was not practicable to identify the purchased item that gave rise to the supply of the benefit or thing, or the participation in the scheme, as a tobacco product. The effect of this amendment will be to narrow the application of the previous defence contained in subsection (2) to certain shopper loyalty schemes. The defence in section 7(2) will now only apply to those schemes where it would be impracticable to identify a tobacco product as the purchased item that gave rise to the supply of a benefit or reward. Reward schemes associated with credit card transactions are examples of such schemes. A financial institution will know that a client has used his or her credit card at a particular retailer, but will not usually know what kind of items the client actually purchased. The client may earn reward points from the financial institution based on use of the client's credit card. The defence in subsection (2) is available to a financial institution in such circumstances. The new defence will no longer be available in relation to shopper loyalty schemes operated by tobacco retailers where it would be practicable to identify a tobacco product as the purchased item that gave rise to the supply of a benefit or reward. Clause 4 provides for the automatic repeal of this amending Act on 1 March 2014. The repeal of this Act does not affect in any way the continuing operation of the amendments made by this Act (see section 15(1) of the Interpretation of Legislation Act 1984). 2

 


 

 


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