The manufacturer of Marlboro cigarettes, Philip Morris International, is prepared to sue the UK government if it implements a law requiring plain packaging for cigarettes.
The government plans to implement the plain packaging law for cigarettes which would contain graphic health warnings and no branding, in an attempt to dissuade consumers and warn them of the potential danger to the health.
Last week, the Public Health of England released data which claimed that plain packaging could help in reducing premature deaths and could also help save the country close to £500m.
Should the law be implemented, the company intends to "protect its rights in the courts" and "seek fair compensation for the value of its property. This compensation might run into billions of pounds.
In April, the government announced its intention to introduce a plain packaging law following a review, which found that it could cut down the rate of children taking up smoking. About 200,000 children take up smoking every year in the UK.
The draft rules were published in June, following which a six-week consultation began that ended last week.
Australia has already put a ban on cigarette branding.
