AWMA recently held a meeting with key government relations representatives from Altria and NACS to discuss the formation of a new coalition dedicated to enacting legislation aimed at putting an end to illegal Internet  sales of cigarettes and smokeless tobacco.  The bill, known as the “Prevent All Cigarette Trafficking Act” or PACT Act, would combat the illegal Internet sales by increasing the reporting requirements on these remote (Internet and mail order) sellers and increasing the penalties for such illegal remote sales.

This legislation is necessary to combat the illegal sales of cigarettes and smokeless tobacco through the Internet and to ensure that these products do not end up in the hands of underage smokers.  Remote sellers – those who sell these products thru mail order or, more commonly, over the Internet – routinely violate state and local laws imposing taxes on cigarettes.  As states continue to increase excise taxes, smokers are increasingly turning to these remote sellers for illegal tax-free cigarettes.  These remote sellers have an unfair competitive advantage and federal legislation is necessary to level the playing field.  From the distributor perspective, every illegal remote sale of these products represents a loss of a legal sale by a law-abiding distributor and retailer.  And, it is important to note that states have lost billions of dollars in unpaid cigarette excise taxes and the recouping of such losses could be helpful to keeping such relentless tax increases at bay.

For these reasons, AWMA has taken up the lead in the newly formed coalition to promote swift passage of this important legislation in Congress.  AWMA members wishing to help out in this effort may visit our Web site at www.awmanet.org and simply click on the “government affairs” button at the top left-hand side of the page to be taken directly to a pre-written letter to send to lawmakers on this issue.