Imperial Brands warned commercial landlords across the UK that they could face criminal prosecution if they continue to collect rent from retail tenants selling counterfeit or illicit tobacco products. The company said it has written to landlords of multiple premises where investigations identified illegal tobacco sales despite repeated enforcement action, formally notifying them of the potential legal consequences if the activity continues.
Imperial said landlords who knowingly benefit from illegal trade could face prosecution under the UK’s Proceeds of Crime Act, in addition to penalties associated with the sale of counterfeit goods, which can carry prison sentences of up to 10 years and unlimited fines. The company cited recent case law that it says confirms landlords may be held liable if they continue accepting rent from premises involved in illicit trade.
Imperial is urging landlords to enforce lease provisions prohibiting illegal activity, cooperate with enforcement authorities, and evict non-compliant tenants where necessary. Deirdre Healy, Head of Corporate and Legal Affairs at Imperial Brands UK, said landlords “cannot turn a blind eye” to illicit tobacco sales, adding that the company is prepared to pursue legal remedies, including injunctions and support for criminal investigations, against landlords who fail to act.
