Imperial Tobacco Canada Sues First Nations Tobacco Manufacturers, Retailers

The $1.5 billion lawsuit claims the tribes operate without adhering to laws and regulations governing tobacco.

June 21, 2011

MONTREAL, Canada - Imperial Tobacco Canada has filed a $1.5 billion lawsuit against First Nations reservation tobacco manufacturers and retailers, the Montreal Gazette reports.

"We operate with over 200 laws and regulations," said Eric Gagnon, an Imperial Tobacco spokesman. "There's no reason why tobacco manufacturers on First Nations reserves should be treated any differently from legal manufacturers. This is what the lawsuit is all about."

The company also seeks to have smaller tobacco manufacturers included as third parties to the case that the Ontario government has already filed against the big tobacco companies, including Imperial, for tobacco-related, health-care costs. If the government??s case is found truthful, then any tobacco business ?" including those on First Nation reservations in Ontario ?" should be subject to the same lawsuit, said Gagnon. The government??s lawsuit ignores the question of contraband cigarettes and it left out the First Nations?? tobacco businesses.

Imperial targeted 18 tobacco manufacturers on reservations. The company??s lawsuit contends that tobacco products are sold illegally on reservations. "They're selling to kids, they're selling without collecting taxes, they're not respecting the display and labeling regulations," said Gagnon. "Since government doesn't want to take the responsibility, we've decided to move forward."

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