PACT Act Under Attack 7.19.10
from NATSO News Weekly

The Seneca Free Trade Association and several Internet-based companies filed lawsuits in the U.S. District Court in Buffalo, N.Y., questioning the constitutionality of the Prevent All Cigarette Trafficking Act. In addition, members of the Seneca Nation contend the law, also known as the PACT Act, discriminates against Native Americans.

The law reforms outdated tobacco regulations by shutting down the nation's mail-order cigarette industry and preventing Native American cigarette businesses from circumventing tax collection and age verification requirements. The law bans the mailing of tobacco products via the U.S. Postal Service and requires the use of excise stamps. However, the Seneca Free Trade Association claims the new law will force hundreds of Seneca-owned businesses to close, devastating the Seneca Nation.

The judge temporarily suspended enforcement of the PACT Act until July 31 so he has time to consider the plaintiffs' complaint.

Several industry groups have filed amicus briefs defending the constitutional validity of the law.

President Obama signed the act into law March 31. It went into effect on June 29.