The U.S. Court of Appeals for the Second Circuit has allowed New York City to move forward with four lawsuits against online cigarette vendors.

With the 2-to-1 decision, the appellate court reversed a 2006 lower court order and reinstated the four lawsuits, finding that the city could move forward on its claims under the federal Racketeer Influenced and Corrupt Organizations Act, known as RICO.
The city accuses the out-of-state vendors of violating federal and state laws by failing to report cigarette purchases by city residents.
Though a 2000 state law has banned direct sales of cigarettes over the Internet and by telephone or mail, officials acknowledge that city residents commonly buy cigarettes online and maintain that when these sales occur, the state and city are unfairly cheated of excise and sales taxes.
(pi)