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Federal judge extends reprieve for Seneca tobacco retailers

By WBFO News

Buffalo, NY – Tobacco retailers from the Seneca Nation of Indians can continue delivering cigarettes sold online through the US mail. Federal Judge Richard Arcara extended a hold on a new law that prohibits the post office from shipping tobacco products.

Arcara's temporary restraining order allows 140 businesses owned by members of the Seneca Nation to use the Postal Service to fulfill online orders. Reprieves already in effect were due to expire on July 16th. Arcara's order extends the hold until July 30th.

Arcara says he hopes to rule soon on an injunction that would prevent the Federal Government from enforcing the Prevent All Cigarette Trafficking -- or PACT Act.

During a full day of arguments Wednesday, attorneys for the Seneca businesses outlined a multitude of provisions in the law they said were unconstitutional, including one which would subject sellers to three years in prison for selling cigarettes without complying with all federal, state and local taxing requirements in the buyer's locale.

"Potentially 6,000 sets of laws could apply to one remote seller, thousands of undefined laws which are virtually impossible to understand let alone comply with," said Howard Radzely, attorney for the Seneca Free Trade Association, who called the provision overly vague.

"Don't sell into that state if you can't figure out the laws of that state," responded Justice Department attorney Gerald Kell. He said Congress passed the measure after finding that states were losing billions of dollars in tax revenues to so-called remote sellers and that taxpaying businesses were unfairly disadvantaged.