Black-market tobacco sellers move online as Victoria cracks down on shops

A reporter's test order of illicit cigarettes arrived within a week, bought through a Facebook ad and e-commerce site

By LineZotpaper
Published
Read Time3 min
Sources3 outlets
The Age has published a first-hand test of Victoria's black-market tobacco trade, ordering a carton of illicit cigarettes through a nondescript e-commerce site and collecting them at an inner-city package locker just over a week later. The purchase highlights how sellers are shifting to social media advertising and home delivery as authorities shut down illegal tobacco shops across the state.

The Age reported that a carton of Manchester Blue, a commonly used illicit cigarette brand, was delivered to its Docklands office for about $15 for a packet of 20, compared with a legal pack that usually sells for between $40 and $50. The site offered bulk discounts, express delivery and payment through PayPal, credit card, Apple Pay and bank transfers. Order updates came via WhatsApp, with tracking through Australia Post. Some of the websites had hundreds or thousands of reviews on sites such as TrustPilot, going back months.

Victoria's illicit tobacco market is considered one of the largest, most lucrative and most violent in the country. So far, authorities have shut down 62 tobacco shops selling illicit products or operating without a licence, mostly in Melbourne's CBD and the Stonnington Council area. Sellers have responded with workarounds, including selling only on weekends, hiding stock in disguised boxes, keeping stockpiles in the boots of vehicles, and offering local delivery from shops in the inner north.

Associate professor of criminology at Deakin University James Martin said the pivot to online retail and home delivery has been fast-moving. "Black markets are inefficient, but they're really resilient, and they're highly adaptable," he said. "You just get constant displacement or balloon effects happening."

Australians spend $8.5 billion a year on illicit nicotine, and online sellers are also using paid advertising on Meta's Facebook and Instagram. The reporter was initially served a Facebook ad, and after interacting with it, dozens of similar advertisements flooded his social media feeds. The owners of the page used were located in Ireland and Vietnam. Advertising tobacco or nicotine products is illegal in Australia. In September, a Meta spokesperson said ads for tobacco and vapes were not allowed, but the company would not refund ads that had already run.

The trade has reopened a national debate over cigarette excise. "I can't see a future where the illicit market is under control at the current legal cigarette prices," said Edward Jegasothy, a senior lecturer at Sydney University's school of public health. One Nation and the Coalition have proposed cutting the tobacco tax by 75 and 80 per cent respectively, an idea supported by some public health experts, academics and economists. The Cancer Council, the Australian Medical Association and Quit argue a cut would increase smoking rates and enrich big tobacco companies, and instead want stronger border controls, licensing laws and fewer licensed tobacco shops.

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Analysis

Why This Matters

  • A cheap, convenient online supply of illegal cigarettes can widen access to smoking while legal packs remain priced out of reach for many.
  • Revenue from the lucrative illicit trade funds organised crime, and sellers have shown they adapt quickly as enforcement closes shopfronts.
  • The federal excise debate goes to the heart of how Australia balances public health goals against black-market demand.

Background

Australia's cigarette prices are among the world's highest because of successive excise increases, and the source reports Victoria's illicit tobacco market is considered one of the largest, most lucrative and most violent in the country. The state government recently granted Tobacco Licensing Victoria new powers after long delays, prompting the current enforcement push and, in turn, the shift online.

Key Perspectives

Public health groups (Cancer Council, AMA, Quit): oppose an excise cut, warn it would raise smoking rates and enrich big tobacco, and instead want stronger border controls, licensing laws and fewer licensed shops. Tax-cut proponents (One Nation, the Coalition, some academics and economists): argue current legal prices make the illicit market impossible to control. Criminologist James Martin: expects constant displacement, with black-market operators shifting to new avenues whenever government and law enforcement react. Meta: says advertising for tobacco and vapes is not allowed, but has not refunded ads that already ran on its platforms.

What to Watch

  • Whether Victoria's enforcement effort moves beyond shopfronts into the online and home-delivery side of the trade.
  • The federal government's position on the proposed tobacco excise cuts from One Nation and the Coalition.
  • How Meta, payment providers and Australia Post respond to sellers using their services for illegal tobacco sales.

Sources

Checked

12 claims in this story checked against 1 source: 8 supported.

Show each claim
  1. SupportedHeadline: Black-market tobacco sellers are moving online as Victoria cracks down on shops.WA Today - Latest News: “Black-market tobacco shops are moving online, offering express delivery and steep bulk discounts to evade authorities and stay afloat as the state intensifies its crackdown on illicit sellers.”
  2. Partly supportedSummary: the reporter's test order arrived within a week.WA Today - Latest News: “In just over a week, the cigarettes were available for pick-up at a nearby inner-city package locker.”
  3. Partly supportedSummary: the test order was bought through a Facebook ad and an e-commerce site.WA Today - Latest News: “I was initially served an ad on Facebook that prompted me to research whether these were legitimate sellers or scams that ultimately wouldn't ship any tobacco products.”
  4. SupportedThe reporter collected the carton at an inner-city package locker just over a week after ordering.WA Today - Latest News: “In just over a week, the cigarettes were available for pick-up at a nearby inner-city package locker.”
  5. Partly supportedAuthorities have shut down illegal tobacco shops across the state.WA Today - Latest News: “So far, authorities have shut down 62 tobacco shops selling illicit products or operating without a licence, mostly in Melbourne's CBD and the Stonnington Council area”
  6. SupportedA carton of Manchester Blue was delivered to The Age's Docklands office for about $15 for a packet of 20, against a legal pack at $40 to $50.WA Today - Latest News: “The price came to about $15 for a packet of 20 cigarettes compared with a legal pack, which usually hovers between $40 and $50.”
  7. SupportedVictoria's illicit tobacco market is considered one of the largest, most lucrative and most violent in the country.WA Today - Latest News: “Victoria's illicit tobacco market, which is considered one of the largest, most lucrative and most violent in the country”
  8. SupportedAustralians spend $8.5 billion a year on illicit nicotine.WA Today - Latest News: “Australians spend $8.5 billion a year on illicit nicotine”
  9. SupportedDeakin criminologist James Martin said: 'Black markets are inefficient, but they're really resilient, and they're highly adaptable.'WA Today - Latest News: ““Black markets are inefficient, but they’re really resilient, and they’re highly adaptable,” Martin said.”
  10. SupportedOwners of the Facebook ad page the reporter used were located in Ireland and Vietnam.WA Today - Latest News: “Despite serving ads to Australians, the owners of the page I used were located in Ireland and Vietnam.”
  11. SupportedIn September a Meta spokesperson said tobacco and vape ads were not allowed but Meta would not refund ads that had already run.WA Today - Latest News: “In September, a Meta spokesperson said ads for tobacco and vapes were not allowed, but they would not refund ads that had already run.”
  12. Not in the sourcesThe trade has reopened a national debate over cigarette excise.

Zotpaper

Written by Harper Lane on the Australia & local desk. Claims checked by Ines Fairley, verification. Edited by Angus Burke, chief sub.

1 source8 of 12 claims matched to a sourcefirst published 19 Oct, 4:43 pm
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