Selwyn Grave Men's Hairdresser and Tobacconist, a 48-year-old trading name, will not be able to display the word "tobacconist" on signage at its Moray Pl premises when a law change takes effect next year.
Under the Smokefree Environment (Controls and Enforcement) Amendment Bill, passed in Parliament last week, names must not be displayed if they advertise or indicate in any way the business sells tobacco products.
Official trading names used for accounting purposes need not be changed.
Mr Grave said that, as a registered hairdresser and tobacconist, he believed he should be able to use both descriptive terms.
After such a long period trading under the name, he did not want to drop part of it on his display.
Mr Grave, a non-smoker, said he agreed smoking was unhealthy, but efforts to stamp out the habit could only go so far. Smoking was relaxation for many people, especially those with mental-health problems.
Advertising the business to out-of-towners would become difficult, plus it stocked a range of specialty products not widely available. However, locals would still know where to go.
Cheap Smokes and Cigars Ltd owner Graham Murphie, while labelling the regulation "absurd", hoped to turn it into a "competitive advantage".
His customers would likely frequent his re-signed tobacconist, but it would be difficult for newcomers to become established, Mr Murphie said.
Melbourne Discount Cigarettes and Tobacco Dairy manager Jack Yu said the change would mean spending a "couple of thousand dollars" for a new display name.
However, he accepted the new law.
Southern District Health Board public health general manager Pip Stewart said the board was pleased the new regulations included restricting display names.
She referred to the board's submission on the Bill in February which called for the display of tobacco-related names to be controlled. The submission included photos of five Dunedin businesses with smoking-related names, three of which were in areas of "high deprivation and a high smoking prevalence".
A spokesman for the Ministry of Health said the law prohibited retailers from including any word or expression indicating that any tobacco product was available for purchase, and treated such names as it would any other form of tobacco advertising, which were banned.
