INTA News

INTA Warns Thai Government That Graphic Health Warnings on Alcoholic Beverages Will Have Negative Consequences for Brand Owners

Published: July 10, 2024

Adrian Dykes A&O Shearman London, United Kingdom Brand Restrictions Committee

In March 2024, INTA’s Brand Restrictions Committee submitted comments to the Prime Minister of Thailand, the Minister of Finance of Thailand, and other key ministers regarding proposed legislation that would have required the makers of alcoholic beverages to put large, graphic images on bottles and packaging to warn consumers of the potential dangers of drinking alcoholic beverages.

The legislation, which was proposed by Thailand’s Alcoholic Beverage Control Committee and the Department of Disease Control (DCC), would have brought alcoholic beverages under a regulatory regime similar to that which applies to tobacco products in many jurisdictions. Had this been introduced, Thailand would have become the first country in the world to require large, graphic health warnings on alcoholic beverages, creating a knock-on effect on producers around the world that import or sell their beverages in Thailand, negatively impacting their ability to use their intellectual property (IP).

The graphics included depictions of cirrhotic livers, dying patients, domestic violence, fatal car accidents, suicide, and allusions of impotence, with accompanying text warnings. The images would have been required to cover 50 percent of rectangular packaging and 30 percent of a bottle label, despite limited evidence that such warnings would be effective, and the DCC’s own data indicating that 87 percent of survey respondents in Thailand disagreed with the plan. Thailand already has strict rules relating to the sale of alcohol, which include textual health warnings, a minimum age for consumption, and sales restrictions during certain times of the day, in specific areas, and on particular holidays, all enforced with strict penalties, including fines, jail time, or deportation.

Echoing concerns made by other opponents, and while acknowledging the need for sound public health policy, INTA highlighted the value brands bring to national economies and expressed concern about the potential for the legislation to increase counterfeiting, limit competition, and contribute to the expropriation of IP rights.

Opponents of the legislation were concerned that the proposals would have a detrimental effect on the critical tourism and entertainment industries. In a post-COVID environment, it was argued, the legislation would curtail economic growth by creating a negative image of hotels, restaurants, bars, and entertainment venues in Thailand. There were also concerns that producers of high-end alcoholic beverages would likely view such imagery as tarnishing their brands, and small producers would not be able to comply with more onerous regulations, leading to both types of producers pulling out of the Thai market altogether, affecting tax revenue and consumer choice.

According to opponents of the legislation, the potential impact of the proposed measures on brand owners was disproportionate to the alleged harm posed by a lawful and otherwise regulated product and the proposals went beyond what was needed to achieve the legitimate health objectives of the DCC. These objectives could be achieved without impacting IP, for example, via public health campaigns, education, and the enforcement of current laws.

Ultimately, the Thai government did not pursue this aspect of the legislation. A softer approach was taken, including placing some limits on alcohol advertising and sponsorship, and providing additional rehabilitation services for those affected by alcohol abuse.

Although every effort has been made to verify the accuracy of this article, readers are urged to check independently on matters of specific concern or interest.

© 2024 International Trademark Association

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