A federal district judge, Richard Arcara, ruled this week that a provision of the newly enacted Prevent All Cigarette Trafficking Act (PACT) banning the shipment of cigarettes through the US mail must be halted. Judge Arcara ruled in favor of Seneca Tobacco business owner Aaron Pierce and granted Mr. Pierce a temporary restraining order.   Judge Arcara indicated that he would hold a hearing on this issue on July 7th.  The TRO only applies to the plaintiffs Aaron Pierce, the retailer Red Earth doing business as Seneca Smokeshop.  At this point other retailers are not affected by the decision and we do not know if the Federal government has decided to delay enforcement of the PACT Act until a final decision is entered by Judge Arcara.  We believe that businesses not party to the suit should still consider the PACT Act effective as of yesterday.  If the Judge enters a final decision to nullify the pertinent PACT Act provisions or if the government advises it will delay enforcement, AWMA will promptly advise you.

The PACT Act officially became effective on June 29th and the provision banning the delivery of cigarettes and smokeless tobacco through the U.S. Postal Service became effective on that date as well.  The intent of the PACT Act – including the USPS delivery ban – is to crack down on the illegal Internet sales of cigarettes and smokeless tobacco which costs states millions in lost revenue and allows these products to more easily end up in the hands of minors.  AWMA supported enactment of the PACT Act for these reasons and because these sales were also undercutting legitimate, law-abiding distributor sales.