WASHINGTON – Legislation (H.R. 2932) to ban the cigarettes and other tobacco products from being shipped via the U.S. Postal Service (USPS) has been introduced in the House by Rep. John M. McHugh (R-NY). According to a press release from McHugh’s office, “Currently, there is insufficient enforcement of age identification when purchasing tobacco over the Internet.”
The legislation, titled the “Do Not Mail Tobacco Bill,” has received strong endorsements from disparate groups including the New York Association of Convenience Stores (NYACS), the Campaign for Tobacco-Free Kids and the American Cancer Society.
According to an American Journal of Public Health study, almost 20 percent of the tobacco sales websites do not have information about prohibiting sales to minors. More than half require only that buyers indicate they are of legal age, while another 15 percent require only that buyers type in their date of birth. Only 7 percent require any driver’s license information for age verification purposes.
State and local governments lose more than a billion dollars per year in taxes evaded by online tobacco sellers. The three major shipping companies – DHL, FedEx, and UPS – have stopped shipping cigarettes nationwide. As a result, Internet tobacco vendors have turned to the USPS to make their deliveries. Congress alone has jurisdiction over what is delivered via U.S. mail, and because of this inconsistent policy, states face a significant loophole in their tax enforcement policy.
“It is far too easy for our children to purchase cigarettes online,” said McHugh in a statement. “Due to Internet tobacco vendors, state and local governments have incurred revenue losses in the billions of dollars. … Law abiding small businesses that dutifully pay the excise tax are suffering from the deleterious effect of internet scofflaws. This legislation would help root out this illegal behavior while combating the disturbing use of tobacco by children.”
“The Postal Service has allowed itself to become a tool of the Internet and mail-order tobacco trade,” James Calvin, NYACS president, said in a press release. “We commend Congressman McHugh’s persistent pursuit of an outright ban on such deliveries, in order to curtail online sales that dodge state taxes and age verification procedures, and harm small business.”
Specifically, the legislation would amend Title 39 of the U.S. Code, restricting the USPS from delivering certain tobacco products, including cigarettes, smokeless tobacco and roll-your-own-tobacco. The bill imposes a penalty of $100,000 for each violation.