Scarcnet News Summaries (Advocacy Institute)
Brown & Williamson Files Complaint To Stop Gray Market Cigarettes
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Abstract
Brown & Williamson Tobacco Corp. filed a complaint Tuesday with the International Trade Commission in an effort to end the sale of "gray market" cigarettes, which are meant for sale overseas, but get re-imported into the United States and sold at a discount. Brown & Williamson spokesperson Stephen Kottak said the company filed the complaint because, "The consumers are not getting the product they expect. We're trying to protect the value of our trademarks and guard against our consumers being confused." The complaint named four cigarette importers: Allstate Cigarette Distributors Inc, R.E. Tobacco Sales Inc., both based in Miami, Prestige Storage & Distribution Inc., based in Fort Lauderdale, and Dood Enterprises, based in Los Angeles. Ricardo Hernandez, manger of R.E. Tobacco Sales, said his company is legitimate and pays state and federal taxes. "Smokers can buy it cheaper and what's wrong with that?" Hernandez asked. The International Trade Commission will decide within a month whether to start an investigation.
Source: Bruce Schreiner, "Tobacco Co. Snuffs Out Importers," ASSOCIATED PRESS, August 18, 1999.