Archive forNovember, 2007

1st Case – Alabama Cigarette Movers vs. State of Georgia

Tuesday, December 4th, 2007

The Supreme Court will consider today whether federal law bars the state of Georgia from regulating and/or restricting the transportation of goods across state lines.

Georgia, concerned about tobacco sales to minors over the Internet, passed a state law in 2006 that required strict labeling and delivery conditions to ensure that buyers are at least 18.

Georgia state officials, including the attorney general, argue that the state must protect the health of its children and that Internet and telephone sales of tobacco products have become a serious problem.

The Alabama Cigarette Movers, a transportation company that delivers Internet products, such as cigarettes, soda pop and foodstuffs, complains that the Georgia law burdens companies with costly and unfair requirements while doing business with Georgia consumers. According to the new law, delivery companies must check packages against a list from the state attorney general of known unlicensed tobacco retailers. They must deliver only to the person to whom the package is addressed and a recipient under age 27 must present identification.

Several decades ago, before the Internet became a lucrative sales tool, Congress mandated that transportation and delivery companies not be subject to demanding, inefficient and overreaching state laws.

Georgia has imposed steep increases in cigarette taxes in recent years. Therefore, smokers in the state increasingly are going online for bargains. Underage smokers, attempting to avoid being asked for identification proving that they are of age to buy cigarettes, are among these Internet customers.

A 2002 study concluded that Internet vendors sold 400 million packs of cigarettes annually, 2 percent of the cigarettes consumed in the United States, a figure that anti-smoking groups say is growing.

“Online companies rely on Internet sales,” said Roberta Carson, spokesperson for the Southeast Transportation Association. “This Georgia law meddles with the right to do business in this country and what’s worse, it limits every American’s right to consume product in whatever way they choose.”

Several other states, including Montana, Illinois and New Hampshire, also currently have such laws regulating the transportation of tobacco products. If the Supreme Court rules in favor of the plaintiff (Alabama Cigarette Movers), then these state laws would be at risk.

PLAINTIFF: Alabama Cigarette Movers

DEFENDANT: State of Georgia

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