18 mai 2009
Philip Morris Sues to Block Internet Cigarette Sales
The New York-based company's cigarette unit, Philip Morris U.S.A., said
it filed eight lawsuits in New York and Los Angeles against more than a
dozen Web sites, seeking to block the sales. The suits accuse the Web
vendors of using Philip Morris trademarks to promote and sell illegally
imported cigarettes and making false claims about the legality of the
sales. The tobacco industry increased prices after agreeing to a $206
billion settlement with 46 states in 1998, and many states and cities
also levied additional taxes, putting the price of a pack of cigarettes
to as much as $7.50 in New York City.
More than 600 Web sites illegally
sell cheaper cigarettes and ``it appears to be growing,'' said Philip
Morris spokesman Brendan McCormick. ``In the past, we have brought
lawsuits against people using the black market in more traditional
ways,'' he said. ``Now they are using the Internet.'' The sites, with
names such as cheapmarlboro.com, 18orless.com and
dutyfree-cigarettes.com, are based overseas, such as in Russia, Spain
and Switzerland, according to the suits. Shares of Philip Morris rose
46 cents to close at $43.15 in New York Stock Exchange composite
trading. Black Market The black market cigarettes are either made in
the U.S. and packaged for overseas sales or made overseas for sale
there, McCormick said. All Philip Morris cigarettes sold in the U.S.
are made in this country, and the company has notified the U.S. Customs
service that it has not given permission for anyone to use its
trademarks on imports, he said.
The only legal remedy for Philip Morris
is to sue for trademark infringement, false advertising and unfair
competition. Only the states and federal government can sue for the
lost tax revenue, McCormick said. The Web sites fail to ensure the
cigarettes aren't sold to children and don't pay taxes, falsely
claiming their products are tax-exempt, Philip Morris said.
The company
said it expects to file more suits as its investigation continues. In
the suits, Philip Morris asks that a court order the sites to stop
using company trademarks and halt the illegal importation. It also can
ask the court to order the Internet service providers to shut down the
sites, McCormick said. ``Philip Morris U.S.A. is committed to pursuing
all available options to ensure that its products are sold in strict
compliance with the law,'' Jack Holleran, vice president of brand
integrity for Philip Morris U.S.A., said in a statement. In the 1998
settlement, the cigarette makers said they would pay about $206 billion
over 25 years to settle the 46 states' lawsuits seeking to recover
their cost of treating smoking-related illnesses. As part of the
settlement, the industry agreed to restrictions on outdoor advertising,
brand-name sponsorships, and distribution of free samples and apparel
that display cigarette brand names. The companies settled separately
with the other four states.