On March 31, 2010, President Obama signed the Preventing All Cigarette Trafficking (PACT) Act into law, which prevents illegal untaxed cigarette sales and access to tobacco products by youth by prohibiting online and mail-order sales of tobacco.
The PACT Act will:
- Require Internet sellers to pay all federal, state, local or Tribal tobacco taxes and affix tax stamps before delivery to any customer;
- Mandate that the age and identification of purchasers be checked at purchase and at delivery
- Require Internet vendors to comply with state and local laws as if they were located in the same state as their customers;
- Provide federal and state enforcement officials with new tools to block delivery of cigarettes and smokeless tobacco products that evade federal or state laws; and
- Ban the delivery of tobacco products through the U.S. mail.
"The PACT Act will cut off a major source of tax-evading, low-cost tobacco from coming into New York and other states," said Scott T. Santarella, President and CEO of the American Lung Association in New York. "The passage of this bill is a true public health victory because higher tobacco prices will prevent more kids from beginning to smoke and encourage more people to quit. "
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