Philip Morris Won't Supply Cigarettes to Web Dealers January 27, 2006
News Summary
A group of state attorneys general has inked an agreement with Philip Morris under which the tobacco company agreed to stop selling cigarettes to Internet and mail-order firms, the Illinois Journal-Gazette and Times-Courier reported Jan. 26.
The agreement is part of a broader effort by state law-enforcement officials to crack down on illegal cigarette sales; buyers from states with high tobacco taxes often try to dodge the levies by buying cigarettes from online or mail-order sellers who don't collect the taxes.
"These illegal enterprises cannot remain in business without a steady supply of cigarettes, and thus restricting that supply can be very effective," said New York AG Elliott Spitzer.
The coalition of AGs from 33 states, the District of Columbia, and three territories recently got credit-card companies to agree to stop processing payments from online tobacco sellers, and persuaded shippers DHL and UPS to cease delivering their products to consumers.
"Our voluntary agreement ... sets a framework for continued information sharing with law enforcement and support of their efforts to eliminate illegal sales of Philip Morris USA products," said a company spokesperson.
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