Almost 50 shops across suburban Perth have been taped up and plastered with large closed-for-business signs after being forcibly shut by authorities cracking down on alleged illegal vape and tobacco sales.
But is the spectacle of a public naming and shaming and the hefty expense for impacted business owners enough to disrupt such a lucrative industry?
How much are we talking?
Health authorities say over the past two weeks they have seized more than $11 million worth of illegal product, including:
- more than one tonne of loose tobacco
- more than 5,400,000 cigarettes
- 51,505 vapes
- 386 vaping accessories
- 85kg of shisha
- 4,420 cigars
It is part of Operation Claudere, a joint effort between the WA Department of Health, WA Police and the Australian Border Force.
Large “store closed” signs are seen after authorities forcibly close the shops. (ABC News: Emma Wynne)
The department’s Shane Giblett said the operation relied heavily on public tip-offs, and hit stores which had previous breaches.
“We get a lot of indications that the public are sick of these stores operating in their areas,”
he said.
“We get information from parents of students who are concerned about their children vaping from the nearby stores.
Shane Giblett says the operation relies heavily on public tip-offs. (ABC News: Mya Kordic)
“We are going to continue closing stores when we have the evidence to do so, and this will be part of our business-as-usual moving forward.”
Do the spoils outweigh the cost?
Boasting at a press conference on Wednesday that the operation was the largest compliance blitz under WA’s new tobacco laws, Mr Giblett said it sent a strong message.
The dozens of impacted stores have been handed short-term closure orders, which require the premises to be shut for 90 days.
According to authorities, allegedly illegal tobacco products have been seized from dozens of stores. (Supplied: WA Department of Health)
While the closure is temporary, Mr Giblett said it would be costly for the affected businesses.
“When they have to close for 90 days, they still have to pay their rent, they still have to buy their electricity,” he said.
“Anybody entering it without an exemption commits an offence, and if you reopen the store and sell prohibited products you commit serious offences.”
It doesn’t end there — prosecutions could still be on the cards.
Notices like this one at a suburban shopping village in Morley have been put on traders across the metro area. (Supplied)
“Part of the follow on is to examine the evidence we have and if we have evidence of breaches of the [Tobacco and Other Products Control Act], we will consider prosecutions,” Mr Giblett said.
How big is the industry?
The tobacco black market has grown considerably in recent years, with an Australian illicit tobacco and e-cigarettes commissioner appointed last year.
The commissioner estimates the trade is worth up to $7 billion a year.
While more than $11 million of allegedly illegal product has recently been seized from stores, the illegal tobacco industry is estimated to be worth up $7 billion per year. (Supplied: WA Department of Health)
The Australian Bureau of Statistics also estimated 80 per cent of nicotine products were sourced illegally last year, up from 12 per cent in 2017.
Over the same period, the consumption of nicotine in Australia increased by almost 40 per cent.
What happens next?
Following Operation Claudere, the health department says it will target regional areas and other metropolitan stores.
“This enforcement action will continue until we close down all the stores,” Mr Giblett said.
“And what I’d like to say to those people out there providing the information, we are feeding it through our intelligence teams.
“We may not get to the store today, we may not get to the store tomorrow, but we will get to the store.”
Mr Giblet also cautioned consumers about where they spend their money.
“When you’re buying illicit tobacco or illicit vapes or any prohibited products, you’re putting money in the pockets of people that may be linked to serious and organised crime,” he said.
