Study Finds Drop in Online Sales of Cigarettes02/25/11
FRIDAY, Feb. 25 (HealthDay News) -- A 2005 voluntary federal ban
on the use of credit cards to buy cigarettes online, coupled with a
ban on all commercial shipping of such purchases within the United
States, has effectively curtailed the popularity of Web sites that
sell cigarettes, new research reveals.
The ban was the result of an agreement involving major credit
card companies and private shippers, such as UPS and FedEx, made
primarily to address the widespread flouting of cigarette taxation
"Most Internet vendors offer tax-free cigarettes, making them cheaper than those sold at stores," the study's lead author, Kurt Ribisl, an associate professor of health behavior and health education at the University of North Carolina, explained in a university news release. "This undermines the impact that higher prices have on reducing smoking."
The agreement was also put in place to cut back on the sale of
cigarettes to minors, Ribisl said, citing the generally weak
age-verification methods of online merchants.
To gauge the impact of the ban, Ribisl's team analyzed the sales
history of hundreds of online cigarette vendors in the year before
and two years after the ban took effect.
Post-ban, the team found, many of the online venders had shut
their virtual doors, and the 50 most popular sites had experienced
a 3.5-fold drop in customer traffic. Even before the end of 2005,
Web site visits had dropped by 1.25 million a month, according to
the study, published online in
Of the online cigarette vendors still in business, the number
that accept credit cards or the payment system called PayPal has
dropped from nearly 100 percent to just over 37 percent, the study
found. And, fewer than 6 percent offer commercial shipping,
compared with about 32 percent earlier.
That said, alternate payment and shipping options became more
popular to make up for banned transactions, the researchers found,
with an increase in personal checks for payment and the U.S. Postal
Service, which was not part of the initial ban, for shipping. A
federal law passed in 2010, however, defined tobacco as
"non-mailable matter" via the postal service.
"This promising approach to controlling the sale of restricted goods online has implications for regulating other products, such as alcohol, firearms, quack cures and medicines sold without a prescription," Ribisl said.
The U.S. Alcohol and Tobacco Tax and Trade Bureau has more on
cigarette marketing and the Internet.
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