Philip Morris USA makes high-quality products including Marlboro cigarettes, the largest selling cigarette brand in the U.S. We are committed to protecting our brands from those who would misuse our trademarks or engage in illegal activity involving our brands.
We believe the cigarettes we manufacture should be sold in compliance with all laws and regulations.
We define contraband cigarettes as product that is:
- counterfeit
- untaxed or under-taxed
- illegally imported
- stolen
The contraband cigarette trade poses a continued concern for our business, government and law enforcement, as well as the legitimate wholesale and retail trade. That’s why we play an active role in addressing this problem and supporting the work of regulatory and law enforcement authorities.
In recent years, excessive increases in state cigarette excise taxes and growing disparities in excise taxes from state to state have provided an incentive for consumers to seek alternative sources to purchase cigarettes. This trend has also resulted in significant financial incentives for criminals and revenue losses for government. Because contraband cigarettes are sold in violation of laws, including age verification laws, they also may be more accessible to youth.
PM USA advocates for state and federal legislation to:
- better protect the legitimate channels of distribution
- impose more stringent penalties for the violation of laws related to contraband cigarette trafficking
- provide additional tools for law enforcement
We work with law enforcement authorities at the local, state and federal levels to support their work to counteract contraband trade in cigarettes. One way we do this is by notifying authorities when we become aware of retailers, wholesalers and importers engaged in the contraband trade of our branded products.
We also support law enforcement efforts by providing:
- contraband cigarette-related training
- product and funding programs to support ongoing investigations
- inspection and authentication of product packaging
- destruction of seized product upon request of law enforcement
Contraband cigarette-related activity undermines the legitimate distribution channels through which our products are distributed and sold. Law-abiding wholesalers and retailers face unfair competition when lower-priced contraband cigarettes are introduced into a market through illegal activity.
We work to protect legitimate retailers and wholesalers by:
- Withholding merchandising payments and promotional support from – and terminating contracts with – sellers engaged in contraband cigarette sales or related activities involving our brands.
- Pursuing litigation or other civil actions against importers, distributors or sellers of contraband cigarettes.
- Providing law enforcement with information about contraband cigarette-related activity found at retail outlets, and in locations where cigarettes are not normally sold.
- Supporting tougher legislation to better protect legitimate distribution.
We will continue to protect our valuable trademarks through our efforts and in coordination with others impacted by this issue.
