Wednesday, November 4, 2009

Pricing for cigarettes

Generally, price fixing is illegal, but tolerated it and even sanctioned by the Government, when it is in their best financial interests. In the United States, where price fixing is not politically correct, it can be prosecuted as a criminal offense a serious crime in accordance with article 1 of the Sherman Act.
Apparently, in accordance with U.S. law, price fixing is illegal, unless it is intentional and comes about through communication or agreement between firms or individuals, and not the government.

1945 Massachusetts the right to set minimum prices for smoking in a cardboard box and depending on the brand. But, as a step to hike tobacco taxes by $ 1 per burns updates through the Legislature, lawmakers attacked the amendment on the removal of price controls as a material aid to retailers.

Prices are now the law dictates that a pack of Marlboros, for example, can not be sold in the Gulf state on less than $ 4.97 - or the owner of the shop is worth $ 500 fine. If the government sanctioned the illegal minimum pricing is prohibited by law, prices may be a mirror of New Hampshire, where the same pack costs about $ 3.75, and no rules or penalties apply.

Throwing out the regulation of prices for cigarettes - pierced fuming antismoking activists - will still be a godsend to the mom and pop office of profit all the other costs down, convenience store owners say. "We use the money we do on cigarettes, to sell a couple of brands of milk is cheaper, Bush said Roger, owner of Apple's market in Clinton.

In other words, Big Tobacco has been subsidizing Big Dairy.

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