March 18, 2005, 1:13AM
Credit cards off limits for online cigarette sales
Associated Press
ALBANY, N.Y. — Major credit card companies will refuse to participate in Internet sales of cigarettes nationwide under a government agreement made today.
The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the companies and state attorneys general agreed to work together to prevent the long unchecked use of credit cards to buy cigarettes over the Internet across state lines. The agreement is effective immediately.
The result is that virtually all credit cards will no longer participate with Web sites based in the United States and abroad that sell cigarettes and tobacco products in every state, said New York Attorney General Eliot Spitzer. The card companies also agreed to take action against Internet sellers that authorities identify as violating state and federal laws regulating cigarette sales.
The effort is important because enforcement has been difficult, even though in many states, including New York, the Internet sale of tobacco products is illegal. The trade undercuts traditional business operators, often avoids sales tax for states and localities, and can be a way for underage consumers to buy cigarettes and chewing tobacco before they turn 18.
"By working with all the major card companies, we will severely restrict the availability of the Internet retailers to make these illegal sales," said Spitzer, one of the lead attorneys general in the partnership sealed Thursday.
The negotiations were also led by California Attorney General Bill Lockyer and Oregon Attorney General Hardy Myers. Attorneys general from Colorado, Idaho, Louisiana, Maryland, Pennsylvania, Vermont and Wisconsin also participated.
"ATF investigations show that millions of dollars each year in illegal sales of cigarettes are diverted to fund terrorists and criminal organizations," said Michael Bouchard, ATF assistant director for field operations. "Through today's initiative, we are addressing the problem of illegal sales across multiple jurisdictions with tremendous support from the country's largest credit card companies. We welcome the help."
Smokers can still buy cigarettes over the Internet, but they would have to use checks, money orders or some other payment system that would likely delay receipt in the Internet business built on speed.
New York's ban on Internet cigarette sales was the first in the nation. But opponents argued the law wasn't about minors smoking, but about state tax revenue. The state's tax on a pack of cigarettes is $1.50, pushing the total price to around $5. Lower prices are offered on the Internet and in mail-order catalogs by tax-exempt Indian merchants and retailers in states with lower taxes.
In January, a federal judge tossed out racketeering charges against a group of online cigarette sellers. New York City had sued 16 cigarette Web sites to require taxes be paid on Internet sales. The city, which estimates it loses as much as $100 million a year because of the unpaid cigarette sales taxes, continues to seek to recover $15 million.
Color me skeptical. I just don't see how it can be enforced.
Tobacco sellers will quite easily get past this through blinds, or their own cards. No problema, just a PITA.
-Eric
"ATF investigations show that millions of dollars each year in illegal sales of cigarettes are diverted to fund terrorists and criminal organizations," said Michael Bouchard, ATF assistant director for field operations. "Through today's initiative, we are addressing the problem of illegal sales across multiple jurisdictions with tremendous support from the country's largest credit card companies. We welcome the help."
Guess I'm a criminal!!!!! Goverment wants more taxes. They say its OK because they are the legal terrorists.
Can you make this title the official title of the thread?
"ATF investigations show that millions of dollars each year in illegal sales of cigarettes are diverted to fund terrorists and criminal organizations,"
That is unprecidented BS!!! Totally untrue, when the "for the children" mantra fails, they pull out the "funding terrorists" crap.