In May, the EU directive that prohibits descriptive terms such as "light" or "mild" on cigarette packaging came into effect. The legislation also encourages smokers to switch to brands that have a lighter content of tar, nicotine and carbon monoxide.
BAT, the maker of Lucky Strike, Dunhill and Pall Mall cigarettes, said from London it plans to make a legal challenge to the new rules because they impair its ability to inform consumers.
"We acknowledge the health risks associated with smoking, and we support sensible legislation achieved through dialogue. However, the EU has gone beyond its powers, and bad law doesn't become good law just because it's tobacco law," BAT chairman Martin Broughton said in a statement.
Another cigarette maker, Imperial Tobacco Group PLC, said it would join BAT in filing a challenge through Britain's High Court. Imperial Tobacco's brands include Lambert & Butler, Super Kings and Embassy.
The EU also requires health warnings to cover at least 30 per cent of the front section of cigarette packs and 40 per cent of the back section. BAT said these measures are out of proportion and won't help consumer awareness.
Canada has made similar steps to curb tobacco use. Earlier this month, it revealed plans to ban companies from marketing cigarettes as light or mild. Legislation could be drafted this fall. Canada has also placed graphic warnings of the effects of cigarette smoking on packaging.