No Fair—They're Copying Us Again!

Jacob Sullum | September 29, 2005

Today the Supreme Court of Canada unanimously approved a British Columbia law that authorizes the provincial government to demand compensation from tobacco companies for the cost of treating smoking-related diseases during the last 50 years. The law, which also rigs the rules for trying the case in the government's favor, is likely to encourage similar efforts by other provinces and similar shakedowns of other industries.

Before I'm accused of lecturing Canadians about the Canadian way of life, let me point out that in this case (as in the War on Fat) Canada is taking its cues from the U.S., where similar lawsuits by 46 states led to a 1998 settlement agreement in which the big tobacco companies got protection from liability and competition, the states got billions of dollars a year, and smokers got stuck with the bill. Colorado State Treasurer Mark Hillman recently made news by endorsing the Competive Enterprise Institute's effort to overturn the settlement as an unauthorized interstate compact that unconstitutionally usurps the powers of state legislatures and Congress.

Comments

|9.29.05 @ 5:28PM|#

This is especially hilarious since 30-40 years ago the federal and provincial governments justified the levying of high taxes on tobacco specifically as a way to cover "public health care costs dating back 50 years, as well as future costs for maladies linked to tobacco".

Gee I wonder what they did with all the money. I guess they lost the key to the "lock-box", eh.

celtlion|9.29.05 @ 6:25PM|#

So many of these federal lawsuits really just seem like extortion to me..case in point the EU and Microsoft..

|9.29.05 @ 6:27PM|#

I guess those Liberal-friendly ad firms are going to see another big windfall in a couple of months.

drf|9.29.05 @ 8:14PM|#

have there been any comments from "up there" about "South Park: The Movie" and its sound track?

|9.30.05 @ 8:14AM|#

Who is going to sue the government
for not protecting us from tobacco weed
for the last fifty years?

Is the Canadian government innocent?
Did they not profit from tobacco taxes?
Shouldn't compensation go to the victims?

Everyone has to have someone to look down on.

|9.30.05 @ 10:42AM|#

Heh. In Minnesota, the governor who pledged "No new taxes" has been claiming that the new 75-cents-a-pack charge for cigarettes is a heath fee rather than a tax. The tobacco companies are taking him at his word, arguing in court that this new health fee invalidates that settlement they made with the state several years ago.