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DENVER (Legal Newsline) – There will be no injunction against a new Colorado law that imposes a minimum price requirement on packs of cigarettes.
Denver federal judge Raymond Moore decided Dec. 28 against granting an injunction requested by discount tobacco retailers that say a part of House Bill 1427 violates the U.S. Constitution by favoring in-state retailers at the expense of out-of-state discounters. The bill was approved by voters in November and is aimed at curbing youth smoking.
But the Liggett Group, Vector Tobacco and XCaliber International say lawmakers cut a deal with tobacco giant Philip Morris that will preserve its place in the market in exchange for the company not using the tools at its disposal to fight the legislation.
The $7 minimum price per pack means a smaller price difference between discount and premium brands of cigarettes, the plaintiffs argued.
“Even if there was any alleged alignment of interests with premium brand manufacturers, Discount Manufacturers fail to show how that renders the retailers the agents of premium brand manufacturers or how that makes retailers competitors with Discount Manufacturers,” Moore wrote.
“The competition remains between cigarette manufacturers who seek to persuade the retailers as to whose goods they should display on premium shelf space.
“At bottom, the Court agrees that Discount Manufacturers compete with other cigarette manufacturers such as Philip Morris or R.J. Reynolds. The Court does not agree, or find, on this record, that Discount Manufacturers compete with Colorado retailers in the cigarette market.”