Zurich-based Nuance Group, the owner of Downtown Duty Free at Sydney Airport, has been fined heavily for breaching tobacco display laws.

Losing a case filed by the NSW Department of Health, Nuance Group has to pay a $337,500 fine plus $50,000 in legal costs for violation of the Public Health (Tobacco) Act of 2008.

Justice Peter Hall decided that the walk-through store at Sydney Airport is a “public place” in NSW which is open to air-side workers. The fine is meant to signal a deterrence to duty free retailers.

In December 2009, a NSW Department of Health inspector saw a cigarette carton in open display in the ‘Mega B’ walk-through store. The department carried out follow-up inspections until March 2010 and listed tobacco products including cigars. Photographic documentation was submitted by health inspector, Michael Cassidy.

According to Supreme Court documents, the retailer pleaded that the departure area should be covered by the Commonwealth Tobacco Act. Its compliance officer claimed that for regulatory purposes the airport should be considered a “Commonwealth place” and that certain formats of tobacco display would be legal.

The NSW Department of Health countered that although the Federal Government regulates the airport facility itself, NSW law applies inside.

Experts at the department of the Attorney-General dismissed the argument that one law overshadowed the other and submitted advice to the court on legislative intention.

GB