Even the country’s leading tobacco company, Philip Morris USA, is hurt by illegal online trading. According to BusinessWeek, it filed a complaint to International Trade Commission to control the rampant vending of illegally imported, counterfeit, stolen, untaxed and under-taxed cigarettes like its world famous Marlboro brand.

While some online vendors are in clear violation of trademarks related to U.S. intellectual property laws, there are also some so-called gray-market vendors who can circumvent the tax process by importing Philip Morris brands intended to foreign markets, particularly from third world countries, and selling it to Americans at cheaper price.

These unfair practices combined with the increased levies on cigarettes are making operations difficult for Philip Morris. Part of the complaint is the request for U.S. Customs & Border Protection to stop all infringing imports from different Websites identified by the company.

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