Philip Morris USA Sues Retailer for Selling Counterfeit Cigarettes

Philip Morris USA (PM USA) filed a lawsuit today in U. S. District Court against Mastic, N.Y.-based Tammy’s Smoke Shop for selling counterfeit versions of the company’s Marlboro® brand cigarettes. The lawsuit is aimed at stopping the sale of counterfeit cigarettes and the unauthorized use of PM USA’s trademarks. PM USA’s action follows a seizure Tuesday by Suffolk County police of 184 cartons of counterfeit cigarettes bearing Marlboro brand trademarks.

"The sale of counterfeit cigarettes undermines the value of Philip Morris USA’s brands and the legitimate channels through which our products are distributed and sold,” said Joe Murillo, vice president and associate general counsel, Altria Client Services speaking on behalf of PM USA. "Selling counterfeit cigarettes is illegal, and we will take appropriate action to protect our brands.”

The lawsuit was prompted by consumer complaints to PM USA’s call center. As a follow-up to the calls, agents for the company purchased cartons of counterfeit versions of Marlboro® brand cigarettes from Tammy’s Smoke Shop. The suit follows the seizure of counterfeit cigarettes by Suffolk County authorities, with whom the company cooperated.

To protect its brands and the legitimate trade channels through which they are distributed and sold, PM USA pursues numerous strategies to address the sale of counterfeit, illegally imported, stolen and untaxed or under-taxed cigarettes. In New York, recent increases in excise taxes and availability of tax-free cigarettes have exacerbated these problems, providing new incentives for tax evasion and other criminal activity related to cigarettes.

In New York, PM USA has taken a number of recent actions to protect its valuable trademarks, promote the lawful sale of its brands and to safeguard the integrity of the distribution system. Within New York, since 2002, PM USA has filed lawsuits against the owners and/or operators of 71 Internet sites, 21 defendants involved in illegally importing cigarettes and 139 retailers selling counterfeit cigarettes. The company has also provided information and support for a number of local, state and federal law enforcement investigations involving contraband trade in cigarettes in New York.

PM USA also continues to advocate for legislative solutions to New York’s complex contraband cigarette trade issues. "We continue to urge the Governor and legislature to pursue a comprehensive resolution to New York’s cigarette tax evasion problems that will restore order and integrity to the legitimate trade in cigarettes,” Murillo said.

Philip Morris USA is an operating company of Altria Group, Inc. (NYSE: MO). More information on Philip Morris USA and its policies and positions on tobacco issues is available at www.philipmorrisusa.com.