New York City Targets Additional RYO Shops

Cease-and-desist orders have been sent to five more shops, citing the state's "fire safe" cigarette law.

January 19, 2012

NEW YORK - New York City is planning to close additional roll-your-own tobacco shops, Crain€™s New York reports.

The city recently reached settlements with other such businesses, forcing them to close after suing them in federal court.

The city€™s legal department has sent cease-and-desist letters to five RYO shops that opened last fall, citing their selling cigarettes that don€™t extinguish themselves when left unattended.

Such "fire safe" cigarettes are required by law in New York, and in response, the retailers have said they are not selling cigarettes, only the supplies to make them, an argument the city rejects.

"People go into the stores, pay them money and leave with cigarettes. That would be a store that sells cigarettes," said city attorney Eric Proshansky.

Violating the state€™s fire-safe cigarette law carries a civil penalty that can reach 2% of gross sales.

New York is also pursuing the RYO shops in an effort to collect tobacco taxes, which currently totals $58.41 per carton (RYO shops have resisted paying the taxes, insisting they are not selling cigarettes).

A lawyer for two of the stores that received a cease-and-desist letter has requested a meeting with city officials, while a third is negotiating to close voluntarily. Two other stores have not responded.

For more information about roll your own tobacco, read "Roll Your Own Profits" in the January NACS Magazine.

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