Solution
PACT ACT
The Coalition to Stop Contraband Tobacco supports S. 1147, the Prevent All Cigarette Trafficking Act of 2009 (the “PACT Act”), which would impose new restrictions on Internet cigarette and smokeless tobacco sales.
The PACT Act is strongly supported by a broad array of advocates, has been pending since 2002, has passed both houses on multiple occasions, and was passed earlier this year in the House of Representatives by an overwhelming bipartisan vote of 397 to 11.
The PACT Act would significantly strengthen federal laws that apply to online cigarette sales. Among other things, the Act would:
- Expressly require Internet sellers pay state and local taxes before they send tobacco products to consumers,
- Impose federal age verification requirements for online sales,
- Broaden the reporting requirements of the Jenkins Act and upgrade violations of the Jenkins Act from a misdemeanor to a felony,
- Empower federal prosecutors and the States to bring actions in federal court to prevent and restrain violations, and
- Bar the U.S. Postal Service from serving as the delivery service for online cigarette and smokeless sellers.
A wide variety of stakeholders stand to benefit from the enactment of the PACT Act:
- States will recover enormous lost excise tax revenues at a time when state budget deficits threaten to cripple important government programs,
- Legitimate retailers and wholesalers will recover lost business at a time when they need it most, and
- Law enforcement authorities will have new and better tools to combat a significant channel for illicit trade.
The PACT Act is the product of a long process of discussion and negotiation among stakeholders, has broad support, and strikes the appropriate balance between the needs of law enforcement and the legitimate interests of affected parties.
Current status of the PACT Act
Senate Co-Sponsors of the PACT Act
Details on HR 1676, the House version of the PACT Act that passed May 21
