AGCM Fined BAT and Amazon for Misleading Tobacco Product Ads

According to Reuters, Italy's competition watchdog, AGCM, has fined British American Tobacco (BAT) and Amazon a total of 7 million euros (7.5 million dollars) for misleading advertising of their heated tobacco products.

The statement from AGCM states that BAT has been fined 6 million euros, and Amazon has been fined 1 million euros, for failing to provide consumers with sufficient information about the nicotine content and related health risks of the Glo Hyper X2 and Glo Hyper Air products.

The regulatory agency stated that street and online advertisements describe these products as "simple electronic devices" and "design items," and in a statement said, "This is a serious deception of consumers, leading to the purchase of products with health risks and are prohibited for minors."

A spokesperson for Amazon stated that the company strongly disagrees with the regulatory agency's decision and plans to appeal the fine.

"Our product descriptions include age restrictions and health-related risks," the spokesperson said. "We have been closely cooperating with AGCM throughout the case, and we have made this information clearer to address regulatory concerns."

The BAT Italy business unit has also issued a statement indicating that they will appeal the AGCM's ruling. "We have always provided adequate information to show that our products are intended for adult smokers only, and we adhere to the highest standards to prevent underage individuals from using any nicotine products," the company stated in a release. "We have been working with Italian authorities and have promptly taken all necessary measures to change our marketing practices."

BAT's Glo device is sold on Amazon's online platform. It does not contain nicotine itself, but is used in conjunction with tobacco sticks that do contain nicotine.

The Italian antitrust regulatory agency launched an investigation in April 2023, accusing both companies of not clearly stating that the heating devices were intended for adult use only, and noting that they were marketed as "nicotine-free." At the time, Reuters discovered that Amazon was pricing the Glo Hyper X2 as a "smoke-free, flavor-free alternative to traditional cigarettes, with no nicotine." The accompanying image featured a symbol stating "not suitable for those under 18 years old.

The same product is now being sold with the following warning: "Not suitable for sale to minors. This product, when used with related tobacco or nicotine sticks or supplements, is not without risk and will provide nicotine.