Dutch Retail Bonuses Not Advertising

Paying retailers bonuses for meeting sales targets does not represent a violation of tobacco advertising restrictions, the Netherlands’ top business court ruled, reports Dutch News.

The product safety board NVWA fined 11 manufacturers and wholesalers for giving bonuses to shopkeepers who sold pre-agreed-upon quantities of cigarettes or placed products in highly visible spots. The NVWA stated that these practices were against the tobacco advertising ban. The companies, however, argued that they were “quite normal business practices.”

The Dutch business court found that the NVWA applied the law too widely, stating that advertising only exists if its purpose is to encourage consumers to use the products.

Starting July 1, supermarkets in the Netherlands will be banned from selling tobacco. Beginning 2032, only specialist tobacco shops will be allowed to sell cigarettes and rolling tobacco.