BLD warns: World Health Conference threatens press supply and democracy in Germany

Die Tabak Zeitung // The 11th Conference of the Parties (COP 11) to the WHO Framework Convention on Tobacco Control (FCTC) will take place in Geneva from November 17 to 22. What sounds like health policy at first glance would have drastic social consequences, warns the German Association of Lottery and Tobacco Retailers (BLD). The measures discussed there would mean the end of the nationwide network of 22,000 lottery sales outlets and thus the loss of an indispensable infrastructure for the common good.

The consequences: the end of the nationwide supply of newspapers and magazines, the collapse of the lottery infrastructure with tax losses amounting to billions, the loss of over 100,000 jobs and the destruction of a proven supervisory authority for the protection of minors. “What is being discussed in Geneva goes far beyond health policy. The consequences of the measures would fundamentally change our society,” explains Günther Kraus, Managing Director of the BLD, who adds: “Whoever talks about tobacco control today will decide tomorrow whether people in rural regions will still have access to daily newspapers, whether democracy will be strengthened through information, whether state funding for sport and culture can continue – and whether over 100,000 people will keep their jobs.”

COP 11 is pursuing an ideologically motivated strategy to completely dry up the legal tobacco market. The measures discussed in the report on Article 2.1 of the FCTC are particularly alarming: the planned reduction of sales outlets, the ban on making profits from the sale of tobacco products, the ban on retailer bonuses, the “phase-out” and the ban on tobacco and nicotine products as well as sales bans for certain birth cohorts.

“Around 90 percent of our retail outlets are also tobacco retailers – and they have to be in order to survive economically,” explains Kraus. “Lottery retailers can’t live from lottery sales alone. They need indispensable mainstays such as the tobacco trade and newspaper sales. If we can no longer earn money from tobacco products, our businesses will simply no longer be profitable. If the WHO measures are implemented, the nationwide network of our retail outlets will be history – and with it an entire infrastructure.”

According to the BLD, the loss of lottery retailers would trigger a chain reaction with far-reaching social consequences. Lottery retailers act as important local suppliers in the area – especially in rural regions, where they are often among the last remaining stores. Their diverse product range includes newspapers, magazines, stationery, office supplies and parcel acceptance. This supply function would be completely eliminated.

The retail outlets are 80 percent of the sales channels for lottery products, which not only generate considerable tax revenue, but also finance charitable expenditure for the common good – for example in sport, culture and social welfare. The entire revenue and funding structure would collapse if the sales outlets were to disappear.

Particularly critical: the sale of press articles would also cease. Especially during the coronavirus pandemic, the role was still classified as systemically relevant.

But systemically relevant means far more than just supply: The nationwide availability of press products supports democracy. A functioning democracy needs informed citizens who have low-threshold access to independent information and diverse opinions. Lottery sales outlets ensure access, especially in places where there are hardly any other points of contact. Their elimination would massively endanger the diversity of the press and democratic discourse in the area.

“Our sales staff are not only regularly checked. Thanks to the state treaty, we have been trained for years in the protection of minors and the sale of products with addiction risks – for both lottery and tobacco,” emphasizes Kraus, who continues: “It would be downright negligent if the infrastructure that has been built up and tested over the years were not used. The tried and tested control body would be eliminated without replacement.”

Illegal markets are strengthened – protection of minors weakened: “Those who don’t have legal access to tobacco products will look for alternative sources,” warns Kraus. The result: the black market and uncontrolled trade would increase – without any protection of minors, without quality controls and without tax registration. At the same time, the possibility of purchasing reduced-risk tobacco products through controlled, advisory channels would disappear.

“The planned measures miss their target. Instead of creating effective, proportionate and controllable regulation, there is a threat of a regulatory clear-cut that does not do justice to either consumer protection or social reality,” continued Kraus. “Where legal structures are destroyed, uncontrolled, tax-free parallel markets are created – with considerable risks for consumer and youth protection. In the end, we would have less control, not more.”

The BLD calls for the rejection of ideologically motivated measures that destroy the legal market and promote illegal structures. Economic and social aspects must be taken into account when drafting international regulations. The systemically relevant infrastructure of lottery sales outlets must be protected. Transparency and the participation of the economic players concerned in the coordination of mandates at national and European level are necessary. The BLD calls for fact-based regulation that reconciles consumer protection, economic reality and social responsibility.

“The German government is called upon to take a clear stance against anti-economic and unrealistic measures as part of the EU mandate vote,” appeals Günther Kraus. “Lotto-Toto stores make a significant contribution to society and social life. They are more than just sales outlets – they are local suppliers, supervisory authorities, employers and social anchor points. The infrastructure must not become a victim of international regulatory fantasies.”