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WorldItaly's competition watchdog penalizes BAT, Amazon for deceptive advertising

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Italy’s competition watchdog penalizes BAT, Amazon for deceptive advertising

Italy’s AGCM competition watchdog imposed fines totaling 7 million euros ($7.5 million) on British American Tobacco (BAT) and Amazon for deceptive advertising regarding heated tobacco products.

BAT received a fine of 6 million euros, while Amazon was fined 1 million euros.

The penalties were issued due to both companies’ failure to adequately inform consumers about the nicotine content and associated health risks of the Glo Hyper X2 and Glo Hyper Air products, according to AGCM’s statement.

The regulator highlighted that street and online advertising portrayed the products as “simple electronic devices” and “design objects.” “This constitutes significantly misleading behavior, as it induces consumers to buy a product with health hazards and is prohibited for minors,” the regulator stated. Amazon expressed strong disagreement with the regulator’s ruling and intends to appeal the fine, according to a company spokesperson. “Our product descriptions include mentions of age restrictions and health risks,” the spokesperson asserted.

“We have collaborated closely with the AGCM throughout this investigation and have taken steps to make this information even more transparent for customers to address the concerns raised by the authority,” stated BAT’s Italian business. Regarding the AGCM ruling, BAT’s Italian business announced its intention to appeal. “We have consistently provided sufficient information indicating that our products are exclusively for adult smokers, and we adhere to the highest standards of conduct to deter the underage use of any nicotine product,” the statement affirmed.

At the time, Reuters discovered an Amazon listing for Glo Hyper X2, promoting the product as “the cigarette alternative, offering a smokeless and odor-free experience, nicotine-free.” An accompanying image featured a “no under-18s” symbol. Presently, the same product is marketed with a cautionary message: “Not intended for sale to minors. This product, when used with associated tobacco or nicotine sticks, cartridges, or refills, carries risks and contains nicotine.”

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