The Lottery Corporation takes a stand on tobacco in its retail network
The Lottery Corporation has recently written to its retail network with an updated position on the sale of tobacco:
The recent media attention given to the illicit sales (i.e. sales not permitted by law) of vapes and tobacco products has resulted in some adverse publicity and brand risk for retailers who sell lottery products in addition to tobacco products.
While we acknowledge that the vast majority of retailers do not engage in these activities, this heightened scrutiny is a reminder that retailers must always adhere to the law and act with integrity, fair dealing, and ethical conduct under the Business Operational Requirements outlined in Clause 4.2 of the Franchise Agreement.
The Lott will now ask whether retailers sell tobacco products, and where a licence or registration is required confirm that retailers are licensed or registered, as part of the Site Survey program commencing from Cycle 3 FY2025 on Monday 6 January 2024.
This new process will involve our Site Survey partners confirming you have a valid tobacco licence or registration, taking a photo of it and noting the expiration date.
The associated Outlet Procedures Manual update notification will be available on Retailers Web from Tuesday 17 December 2024.
Any lotteries retailer found to be engaging in the illicit sale of vapes and tobacco products will be in breach of their Franchise Agreement and risk termination.
This is a good move given inaction by federal and state authorities in relation to the sale of illegal tobacco and vape products. It will be interesting to see the extent to which TLC backs up their note with action.
This is a big issue for TLC since they proudly promote values that one could argue are not aligned with the sale of tobacco and vape products at all.
We believe in building a better tomorrow, which for us means making real change for our customers, small businesses, our charity and industry partners and government stakeholders.
I wonder, too, how their support, even if it is indirect, is viewed by the health and community groups with which they are aligned.
Some retailers promote tobacco as they know it leverages well off the lottery traffic. Since the TLC retail network is franchise network, TLC has a significant role to play.
It will be interesting to see how this issue plays out in 2025.