Posted on 01/26/2006 1:48:24 PM PST by SheLion
CHICAGO, Jan 26 (Reuters) - Cigarette maker Philip Morris USA on Thursday said it agreed to suspend shipments to customers that states find have illegally sold cigarettes over the Internet or by fax, mail or telephone.
The unit of Altria Group Inc. reached the agreement with attorneys general in 33 states and other jurisdictions as a way of trying to curtail illegal sales of cigarettes over the Internet and through the mail.
Opponents of these "remote" sales of cigarettes argue that they let customers avoid age restrictions for purchasing cigarettes, as well as state excise taxes.
The maker of Marlboro and other brands also said that it would reduce the volume of its cigarettes available to customers that a state determines have indirectly engaged in illegal remote sales.
It will also stop a retailer from participating in its trade programs -- where retailers receive financial incentives for certain activity -- if a state determines that the retailer has engaged in illegal remote selling of the company's cigarettes.
The 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," Denise Keane, Philip Morris USA general counsel, said in a news release.
A Philip Morris spokesman did not return a phone call seeking further comment.
Altria shares were up 5 cents at $73.90 in late Thursday afternoon trading on the NYSE.
Why haven't they stopped producing cigarettes if they are SO against them!
They should stop shipping to states that have severe anti-smoking laws. I wonder what that would do to the tax base.
ou mean they are no longer selling to the native tribes?
If they would stop taxing the hell out of them people would have no problem buying them legally.
New York state Governor, George Pataki recently sent his 2006-2007 budget plan to the state legislature which included a proposal to raise the states current cigarette excise tax to $2.50 per pack. This proposal represents an increase of $1.00 over the current tax of $1.50 per pack and, if enacted, would make New York states cigarette excise tax the highest in the nation.
New York state Governor, George Pataki recently sent his 2006-2007 budget plan to the state legislature which included a proposal to raise the states current cigarette excise tax to $2.50 per pack. This proposal represents an increase of $1.00 over the current tax of $1.50 per pack and, if enacted, would make New York states cigarette excise tax the highest in the nation.
You know as well as I do that it's the American Way To Shop Cheap. And when the states raise cigarettes taxes to such a ridiculous level, of course smokers are going to go elsewhere. Or roll their own!
Maine doubled the cigarette taxes to $2.00 a pack! Doral's now cost $44-$45 a carton! DORAL'S! Can you believe it!
Can't stand the high taxes?
Afraid to order off of the Internet?
Then start rolling your own!!! I find everything but the machine downtown at the local Smoke Shop. Also, Rite Aid and grocery stores also sell the bags of tobacco and the filtered tubes.
I roll out a beautiful carton for a little under $8 dollars. Premiums in my state are now up to $45-$50 a carton. Can you imagine the money I have saved over the past 4 years since I now roll my own? It's mind boggling.
under $50.00
Check StuffYourOwn for prices on tobacco
$1.99 for 200 filtered tubes
Make your own cigarettes for as low as $6.99 per Carton! Smoke Quality FILTERED cigarettes that you make yourself using cigarette tubes (like a cigarette without the Cigarette tobacco), our cigarette making machines, and our "roll your own" cigarette tobacco.
-Stop Paying High Cigarette Taxes
-So Much Easier than "Roll Your Own" cigarettes!
Philip Morris has been supporting all increases in cigarette taxes lately - I wonder how much the states are funnelling back to them?
LOL! Who's Phillip Morris?
You're kidding, right?
So long as they are guarateed a fixed profit, including the cost of playing tax collector, why should they care how high the price goes?
Soon we will have to fight, not accomodate.
There is only a 25 cent surcharge on a bag of tobacco in town. It will take a long long time for them to bump the taxes up on a bag of tobacco to match what you pay on a carton today. I'm not worried about it.
No. This is about PM not sending anymore shipments to online vendors. Sucking up to the AG's and all that.
Also, it's about PM putting their gagging TV ads on for people to stop smoking.
And yet.............they continue to manufacture and sell cigarettes. Talk about hypocrisy!
Illinois has a new cigarette use tax form in their income tax package this year. The use tax is .49 a pack and sales tax of 6.25% of the purchase price if not bought in Illinois.
Who's Phillip Morris?
He's the guy that was being paged by the bellboy in the hotel lobby a few years ago. (If you don't know what I'm talking about you are fairly young-LOL)
Well, I just know that Doral's in Maine cost $44-$45 dollars a carton. DORAL'S! Premiums must be up to $60 dollars in this state now.
The "bottom line" finances of States Governments these day's has been politically convoluted and grayed out to convince the voting public to appreciate the thought of financing a larger government while making those financial solvent givers to government seen as the bad guys.
I just returned from a work related stint in San Fran...
When I asked for a smoking section in a restaurant, I was responded with "Huh? well like if you need to smoke dude, like wow, you need to like go outside?
Like what is a smoking section?
They're not allowed to do that, it's written into the great tobacco settlement.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.