Learning Objectives: describe strategies that Internet cigarette vendors use to promote cheaper and tax-free cigarettes online
Abstract: Industry analysts predict that 20% of U.S.’ annual $40 billion cigarettes sales will occur via the Internet. States are at risk of losing tax revenue dollars if smokers evade paying state excise taxes by purchasing their cigarettes through the Internet. A previous study of 88 Internet cigarette vendors found that a third of sites promote tax-free cigarettes, a quarter of sites sell duty-free Marlboros which are banned for domestic sales, and that few sites mention provisions of the Jenkins Act which regulates mail order sales of cigarettes. To date, no studies have examined the average cost of cigarettes sold on the Internet, how Internet cigarette vendors promote tax-free sales, and how they warn buyers about provisions of the Jenkins Act. This study assessed: 1) average costs of Marlboro, duty-free Marlboro, and the lowest-priced value brand of cigarettes sold online; 2) the frequency, location (on main home page, part of website's name or URL), and actual wording of tax-free promotion; and 3) the wording of the Jenkins Act and whether vendors specify that they will abide by this provision. A sample of 198 unique web sites that sell cigarettes, offer online or mail/phone/fax order, and are based in the U.S were identified in January 2002. Information on cigarette prices, tax-free promotional strategies, and descriptions of the Jenkins Act were collected using a standardized coding form. Data collection and analyses are ongoing. Study results and policy implications will be presented.
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