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Philip Morris USA Files Lawsuits to Stop the Sale of Counterfeit Cigarettes
Congress Takes up Legislation to Address Illegal Cigarette Trade
RICHMOND, VA (May 18, 2009) - Philip Morris USA filed lawsuits today against retailers selling counterfeit versions of the company’s Marlboro® brand cigarettes. PM USA conducts periodic marketplace purchases of cigarettes and found each of the named defendants selling counterfeit cigarettes during 2009.
PM USA continues to pursue counterfeit sellers in New York. Following last week's filing against Mastic, N.Y.-based Tammy's Smoke Shop, PM USA filed three lawsuits today against seven retailers in federal courts as follows:
Eastern District of New York
| Ashley One Stop Deli
88 Stop & Go Newsstand
Prospect Park Deli
| 111-20 101 Avenue, Richmond Hill, NY 11419
106 21 71st Avenue, Forest Hills, NY 11375
155 Prospect Park SW, Brooklyn, NY 11218
|
Southern District of New York
| 336 Deli Grocery
Manhattan Tobacco & Grocery
| 336 Est. 106 Street, New York, NY 10029
881 9th Avenue, New York, NY 10019
|
District of New Jersey
| Jaritza II Supermarket
New York Deli Grocery
| 1085 Summit Avenue, Jersey City, NJ 07307
1102 New York Avenue, Union City, NJ 07087
|
Increases in federal, state and local excise taxes have provided new incentives for tax evasion and other criminal activity related to cigarettes. In New Jersey, the average retail price for Marlboro® brand cigarettes is $7.25, of which $3.58 is excise taxes*. By comparison, the average retail price for Marlboro® brand cigarettes is $9.64 in New York City, of which $5.26 is excise taxes. The counterfeit cigarettes purchased from the retailers above bore no tax stamp or a counterfeit tax stamp. As a result, the applicable excise taxes were not paid.
“While the illegal cigarette trade in New York is becoming increasingly complex, Philip Morris USA remains committed to taking steps necessary to protect our brands and the legitimate cigarette trade,” said Joe Murillo, vice president and associate general counsel, Altria Client Services, speaking on behalf of PM USA.
PM USA pursues numerous strategies to address the sale of counterfeit, illegally imported, stolen and untaxed or under-taxed cigarettes. In addition to litigation, these include working closely with law enforcement authorities in New York to address the state’s continuing contraband cigarette trafficking problems and advocating for legislation with more stringent penalties for the violation of laws related to contraband trade in cigarettes. PM USA supports H.R. 1676, the Prevent All Cigarette Trafficking Act (the “PACT” Act), introduced by Congressman Anthony Weiner (D-NY), which is scheduled to be considered by the U.S. House of Representatives on Tuesday, May 19.
The PACT Act includes provisions designed to bring an end to tax-evading sales of cigarettes and smokeless tobacco products over the Internet and provides the Bureau of Alcohol, Tobacco, Firearms and Explosives – the key crime fighters in this area – with more resources and tools to accomplish this goal. These include creating six regional contraband cigarette trafficking teams, including one in New York City; a new national Tobacco Intelligence Center to monitor and coordinate illegal cigarette trafficking investigations in the United States; and a computer database that will track and analyze information from remote sellers of tobacco products.
“This latest round of counterfeit activity illustrates the need to provide law enforcement authorities with the tools they need to decisively address these problems,” Murillo said. “We strongly support the PACT Act and applaud the sponsors for recognizing the importance of this issue.”
Philip Morris USA is an operating company of Altria Group, Inc. (NYSE: MO).
