For years I’ve watched illegal tobacco shops open on the same strip as newsagencies. They undercut everyone. They treat fines as a business expense. They keep trading.
They bring risk to the street.
Governments have finally worked out that seizing stock doesn’t stop them. Closing the door does.
The closures are real
Queensland moved first. Last December I wrote about Operation Major, which put three-month closure orders on 148 stores in a 10-day blitz.
South Australia has closed 100 stores and seized around $50 million worth of product.
NSW can now issue short-term closure orders of up to 90 days and long-term orders of up to 12 months. In April, 23 retailers on the Central Coast were shut for 90 days in one operation.
WA had six stores ordered to close within days of its new laws taking effect.
And here in Victoria, inspectors and police can now close a business on the spot for up to 90 days. Footscray and Richmond stores were among the first to be shut, and Tobacco Licensing Victoria said it would publish a list of closed businesses. I like that. Public lists change behaviour.
Landlords are now in the frame, and this is the part I think matters most.
In Victoria, landlords can kick out tenants who breach tobacco licensing laws. Queensland has gone further, creating a criminal offence for landlords who knowingly let illegal tobacco be sold on their premises.
Once the property owner carries the risk, the easy shopfronts start to disappear.
It isn’t fixed yet
Some operators are already working around closures. NSW Health has flagged sellers using QR codes and social media to keep trading after a closure order.
The price gap is still the core problem. While legal and illegal product sit so far apart on price, there will always be someone willing to take the risk. Enforcement has to keep coming back, again and again.
I’m pleased to see this. It’s the first time in years the risk has sat with the people breaking the law, not the retailers following it.
Why I care
Illegal tobacco shops don’t just hurt those who sell legally. They bring crime to our shopping strips, and Melbourne has seen firebombings because of it. That puts every neighbouring business and its staff at risk.
If you see illegal tobacco being sold near your shop, report it to your state’s health department or tobacco regulator. The powers are there. Let’s make sure they’re used.
They’ll fine other ways
The organisations behind the illegal tobacco trade are organised and sophisticated. They will evolve;ve, as they have done. For now though, the progress by authorities is good to see.