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· Iowa

State files lawsuit against mail-order tobacco company 

Jump to full article: AP, 2003-09-27

Intro:

The state of Iowa has filed a lawsuit against a company that officials say fraudulently advertised tax-free tobacco products that were sold by mail.

Smokers Warehouse Club, Inc., violated the Consumer Fraud Act when it advertised that its bulk tobacco was tax free and could be rolled into cigarettes equaling a cost of just 67 cents a pack, Attorney General Tom Miller said Friday.

"Don't be fooled. Everybody has to pay tax on cigarettes," he said. "If somehow the seller gets around it ... the consumer has to pay."

He said the Richmond, Ill.-based company also failed to ensure that minors couldn't unlawfully obtain the tobacco products by mail. . .

Smokers Warehouse also makes "no effort whatsoever to check a valid identification" of the purchaser's age, said Miller.

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