Tobacco giant BAT probed over covert advertising in Italy

Earlier this year, BAT forecast e-cigarette and tobacco heating devices would contribute to earnings for the first time this year as more smokers switch to products perceived as less harmful in the pandemic.

Italy's antitrust regulator has said it has launched a probe into the Italian unit of cigarette giant British America Tobacco (BAT) over alleged covert advertising of its tobacco heating product Glo Hyper on social media.

The watchdog said in a statement that three influencers who had commercial agreements with BAT invited their followers on Instagram to publish content linked to Glo Hyper, without specifying it was advertising.

It added that the Italian tax police had carried out inspections of BAT offices on May 27.

BAT Italia said in a statement that it was convinced it had acted in a correct manner and was confident the outcome of the probe would demonstrate this.

"(What happened) is a new situation, which does not fall under the authority's guidelines, where over-age followers are encouraged to post photos of their life passions, tagging Glo," the statement added.

BAT also said it would continue co-operating with the Italian regulator and provide any information requested.

Earlier this year, BAT forecast e-cigarette and tobacco heating devices would contribute to earnings for the first time this year as more smokers switch to products perceived as less harmful in the pandemic.

-Reuters