Cigarette Maker Sues To Sell Online

The nation's third-largest cigarette maker has sued the state of New York over a new law banning the sale of cigarettes over the Internet.

In a lawsuit filed last week in Manhattan federal court, Brown & Williamson Tobacco Corp., alleges the law is "an unconstitutional interference with interstate commerce," and accuses the state of engaging in "impermissible economic protectionism at its most flagrant." The Louisville, Ky., company asked the court to overturn the measure before its due to go into effect next month.

The law - which also prohibits mail order and telephone sales of cigarettes - was passed earlier this year by state legislators, who said it was needed to protect public health and the state economy. They argued that the sales make it easier for children to get cigarettes and for smokers to dodge sales tax.

"This law is an important public health measure that will help save lives by preventing young people from obtaining cigarettes illegally," Joseph Conway, a spokesman for Gov. George Pataki, said Monday. "We're confident that the law is constitutional and that the lawsuit will be unsuccessful."

Marc Violette, spokesman for state Attorney General Eliot Spitzer, said Spitzer's officer would "defend (the law's) constitutionality vigorously."

An attorney for Brown & Williamson, David Remes, said the case is the first of its kind in the country, and has implications beyond tobacco.

"If all 50 states try to dictate their own rules for e-commerce, it will be difficult for e-commerce to flourish," Remes said.

Brown & Williamson, the maker of Kool and Lucky Strike cigarettes, recently announced it was forming a subsidiary to sell less popular brands like Tareyton and Carlton over the Internet. The company has said it will use "rigorous procedures" to prevent sales to minors and will collect all taxes.

"New York doesn't stand to lose anything from Brown & Williamson's operations," Remes said.

By Tom Hays
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