Mon, Feb 8, 2010
Tobacco Reporter Magazine Content:
PM USA continues legal crusade against illicit trade
Nov 20, 2009—Philip Morris USA yesterday filed lawsuits against 10 retailers for allegedly selling counterfeit versions of Marlboro cigarettes in New York and New Jersey.
“The New York metropolitan area continues to be a lucrative market for counterfeit and contraband cigarette smugglers,” said Joe Murillo, vice president and associate general counsel, Altria Client Services, speaking on behalf of PM USA. “High excise taxes, coupled with New York state’s lack of effective tax enforcement, only makes the problem worse.”
These lawsuits are the latest in a series of filings by Philip Morris USA aimed at combating the sale of counterfeit cigarettes in New York and New Jersey. Since May 2009, the company has filed lawsuits against 27 retailers in New York and New Jersey for selling counterfeit Marlboros.
‘In addition to violating many trademark laws, counterfeit cigarettes are almost always sold without the appropriate federal and state excise tax,’ PM USA said in a note posted on its website. ‘The counterfeit cigarettes purchased from the retailers named in today’s [yesterday’s] suits bore no tax stamp or a counterfeit tax stamp. As a result, the applicable excise taxes were not paid.’
“The sale of untaxed cigarettes harms legitimate wholesale and retail businesses and costs New York and New Jersey needed tax revenues that could be used to support essential public services,” said Murillo.
“Currently, the New York legislature is debating solutions to address the state’s current fiscal crisis, including the enforcement of existing cigarette tax laws. Estimates vary, but New York could be collecting hundreds of millions of tax dollars on cigarettes sold to non-tribal members through Native American reservation outlets. Effective tax collection could also help stabilize the legitimate cigarette distribution channel in New York, which is increasingly under attack from counterfeit and contraband cigarette smuggling,” Murillo added.
Nov 20, 2009—Philip Morris USA yesterday filed lawsuits against 10 retailers for allegedly selling counterfeit versions of Marlboro cigarettes in New York and New Jersey.
“The New York metropolitan area continues to be a lucrative market for counterfeit and contraband cigarette smugglers,” said Joe Murillo, vice president and associate general counsel, Altria Client Services, speaking on behalf of PM USA. “High excise taxes, coupled with New York state’s lack of effective tax enforcement, only makes the problem worse.”
These lawsuits are the latest in a series of filings by Philip Morris USA aimed at combating the sale of counterfeit cigarettes in New York and New Jersey. Since May 2009, the company has filed lawsuits against 27 retailers in New York and New Jersey for selling counterfeit Marlboros.
‘In addition to violating many trademark laws, counterfeit cigarettes are almost always sold without the appropriate federal and state excise tax,’ PM USA said in a note posted on its website. ‘The counterfeit cigarettes purchased from the retailers named in today’s [yesterday’s] suits bore no tax stamp or a counterfeit tax stamp. As a result, the applicable excise taxes were not paid.’
“The sale of untaxed cigarettes harms legitimate wholesale and retail businesses and costs New York and New Jersey needed tax revenues that could be used to support essential public services,” said Murillo.
“Currently, the New York legislature is debating solutions to address the state’s current fiscal crisis, including the enforcement of existing cigarette tax laws. Estimates vary, but New York could be collecting hundreds of millions of tax dollars on cigarettes sold to non-tribal members through Native American reservation outlets. Effective tax collection could also help stabilize the legitimate cigarette distribution channel in New York, which is increasingly under attack from counterfeit and contraband cigarette smuggling,” Murillo added.
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