Recorded presentation

Kurt M. Ribisl, PhD, Department of Health Behavior and Health Education, University of North Carolina at Chapel Hill School of Public Health, CB #7440 Rosenau Hall, Chapel Hill, NC 27599, (919) 843-8042, kurt_ribisl@unc.edu and Christopher Banthin, JD, Northeastern University School of Law, Tobacco Control Resource Center, 360 Huntington Avenue, 117 Cushing Hall, Boston, MA 02115-5000.

Abstract: Anyone concerned with reducing tobacco use needs to understand the growing threat caused by tobacco product sales over the internet. Internet sales currently provide youths with another way to obtain tobacco products while avoiding minimum age laws. By typically selling tobacco products free of state and, sometimes, federal taxes, internet prices are well below regular market prices, thereby increasing adult and youth smoking levels. The threat of increased tax avoidance through internet sales impedes efforts to raise cigarette tax rates, which reduces smoking and can provide scarce funds for state tobacco prevention programs. Internet sales also threaten to change the structure of the U.S. tobacco industry and market, which could harm public health efforts and reduce state tobacco settlement revenues. Key Points: 1) Internet tobacco sales are growing rapidly, with few internet sellers complying with applicable tax laws or doing adequate age verification. 2) State budget difficulties require that tobacco control initiatives seek new funding streams and protect existing ones; but internet sales reduce state tobacco tax and settlement revenues. 3) While substantial obstacles exist (including tribal sovereignty issues), new public and private enforcement strategies can reduce youth access to internet sales, improve state tobacco tax collection, and minimize related settlement payment threats -- and new legislation can make that easier. 4) New laws and enforcement efforts in California, New York and other states provide useful guidance.

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