Federal Judge Voids N.Y. Tobacco Sale Law
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A New York law banning mail-order, Internet and telephone sales of cigarettes was stuck down as unconstitutional by a federal judge.
District Judge Loretta Preska’s ruling said the practical effect of the law “is to discriminate against interstate commerce by effectively eliminating all competition from interstate merchants for the retail sales of cigarettes.”
There is every reason to suspect that the gainers will be New York retail businesses and that the losers will be out-of-state retailers,” Preska wrote.
The New York state law was challenged by Louisville, Ky.-based Brown & Williamson Tobacco Corp., a unit of Britain’s British American Tobacco.
British American Tobacco’s American depositary shares rose 12 cents to close at $15.14 on the American Stock Exchange.
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